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Complete guide: entity types, registration, costs, taxes, labor laws, and break-even analysis
~275 days
Setup Time
~$6,080
Setup Cost
12.5%
Corporate Tax
100%
Foreign Ownership
#54
Ease of Business
| Entity | Min Capital | Foreign % | Liability | Min Shareholders | Best For |
|---|---|---|---|---|---|
Private Limited Company by Shares Eteria Periorismenis Efthynis (Ltd) | 1 EUR | 100% | Limited | 1 | Most foreign investors and holding structures - 12.5% corporate tax, full EU access, robust double tax treaty network |
Public Limited Company Demosia Eteria | 25,629 EUR | 100% | Limited | 7 | Larger enterprises and CSE-listed companies - higher capital and disclosure but access to capital markets |
Branch of Overseas Company | None | 100% | Unlimited | 0 | Foreign companies extending operations - parent retains liability but no separate share capital required |
Cyprus International Trust | None | 100% | Hybrid | 0 | Wealth structuring, asset protection, and estate planning for non-resident settlors and beneficiaries |
Reserve company name
File name application with the Department of Registrar of Companies (DRCOR) online or via a Cyprus lawyer. Approval required before incorporation.
2-6 days
~$30
Department of Registrar of Companies (DRCOR)
Engage a Cyprus advocate
By law, only Cyprus advocates may sign and submit incorporation forms HE1 (declaration), HE2 (registered office), HE3 (directors and secretary)
1-3 days
~$800
Cyprus Bar Association advocate
Submit incorporation file
Lodge memorandum and articles of association along with HE1, HE2, HE3 and pay capital duty (0.6% of authorised share capital)
5-14 days
~$250
DRCOR
Register for tax (TIC) and VAT
Apply for Tax Identification Code with the Tax Department and register for VAT if turnover exceeds EUR 15,600 or for intra-EU acquisitions
2-7 days
Free
Cyprus Tax Department
Register with social insurance
Enrol with the Social Insurance Services as an employer once you have employees on payroll
1-5 days
Free
Social Insurance Services
Open corporate bank account
Open multi-currency account with a Cyprus bank. Enhanced due diligence applies for non-resident beneficial owners; allow several weeks.
14-60 days
Free
Commercial Bank
Apply for sector licences
Activities such as investment services (CySEC), banking, insurance, gaming, or shipping require sector-specific authorisation
30-180 days
~$5,000
CySEC, Central Bank of Cyprus, or relevant regulator
$1000/mo
Minimum Wage
$2350/mo
Average Wage
40 hrs/week
Work Hours
20 days/year
Paid Leave
2 weeks/year
Severance
8.8% of salary
Employer Social Security
8.8% of salary
Employee Social Security
Required
Foreign Worker Permit
Foreign Worker Quota: EU/EEA citizens have free movement. Non-EU employees require a work permit and residence permit; the employer must demonstrate the position cannot be filled locally. Cyprus also runs a Digital Nomad Visa programme for non-EU remote workers.
Work Permit Process: Non-EU workers need an employment permit issued by the Civil Registry and Migration Department after labour market test. Highly skilled employees of foreign-interest companies enjoy a fast-track Business Facilitation Unit pathway.
#54/190
Ease of Business Rank
9 days
Starting a Business
9 days
Registering Property
1100 days
Enforcing Contracts
53/100
Corruption Perception
92%
Internet Penetration
EUR
Currency
UTC+2
Time Zone
14
Retail (months)
12
F&B (months)
14
Tech (months)
22
Manufacturing (months)
10
Services (months)