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Step-by-step regulatory requirements organized by timeline phase
Engage a Cyprus advocate to file forms HE1 (declaration), HE2 (registered office), HE3 (directors and secretary), and the memorandum and articles. Pay capital duty of 0.6% of authorised share capital. Standard registration 5-7 business days.
Open Corporate Bank Account
Open a multi-currency account with a Cyprus bank (Bank of Cyprus, Hellenic Bank, Eurobank). Non-resident UBOs require enhanced KYC including source of funds documentation; allow 4-8 weeks for onboarding.
Non-EU employees require an employment permit issued by the Civil Registry and Migration Department. Highly skilled employees of foreign-interest companies use the fast-track Business Facilitation Unit pathway.
Apply for Sector Licences
Investment firms (CySEC), payment institutions and EMIs (Central Bank of Cyprus), insurance (Superintendent of Insurance), and gaming (NBA) require sector authorisation before commencing operations.
Register the company with the Cyprus Tax Department to obtain the Tax Identification Code (TIC). Required for all corporate filings, payroll, and bank account opening.
Register for VAT
VAT registration is mandatory if 12-month turnover exceeds EUR 15,600 or if making intra-EU acquisitions. Voluntary registration is also available. Standard rate 19%.
Register as an employer and enrol each employee with the Social Insurance Services. Employer pays 8.8% Social Insurance, employee 8.8%, plus 2.9% / 2.65% to GHS (General Healthcare System).
Beneficial Ownership Register
Register beneficial owners with the DRCOR central UBO register within the prescribed timeframe and update within 14 days of any change. Mandatory under EU AMLD V transposition.
Appoint Auditor and Accountant
All Cyprus companies must appoint an ICPAC-registered auditor and prepare audited annual financial statements regardless of size. Engage early so first year-end is covered.
Submit Provisional Tax Return (TD6)
File provisional corporate tax return by 31 July of the tax year and pay first instalment. Second instalment due by 31 December. Underestimation by more than 25% triggers a 10% surcharge.
File Annual Return HE32
File the Annual Return HE32 with audited financial statements with DRCOR within 28 days of the AGM. AGM must be held within 18 months of incorporation, then once each calendar year.
File Corporate Income Tax Return (TD4)
Annual tax return filed electronically by 31 March of the year following the tax year. Standard corporate tax 12.5% on worldwide income with treaty relief.
File Quarterly VAT Returns
Submit VAT returns and pay any VAT due via TaxisNet by the 10th day of the second month following the quarter (e.g., Q1 due by 10 May). Recapitulative statements required for intra-EU sales.
Monthly Social Insurance and GHS Contributions
Pay employer and employee Social Insurance and GHS contributions by the end of the month following the salary month via the SISnet portal.
Special Defence Contribution (SDC) Compliance
If shareholders are Cyprus tax-resident and domiciled, withhold SDC on dividends (17%), interest (30%), and rents (3%). Non-domiciled residents are exempt for 17 years.