How to Register a Legal Entity in Cyprus Step by Step Instructions

Nikita Veremeev

31.07.2025 | 6 min read

Updated: 31.07.2025

In 2025, more than 70% of new European holding structures and investment companies choose Cyprus as their main jurisdiction for business registration. The reason is not only the attractive corporate taxation in Cyprus but also a unique combination of flexibility, transparency, and access to EU, Asian, and Middle Eastern markets.

However, behind this statistic lies another reality: according to international research, up to 40% of foreign investors face rejections in opening bank accounts, compliance delays, and errors in choosing company structure in Cyprus.

Why, despite the obvious advantages, does Company Registration in Cyprus become a challenge for experienced entrepreneurs? How to minimize risks, ensure AML/KYC compliance, and get the most out of the Cypriot jurisdiction?

In this article, I, Nikita Veremeev, share a practical step-by-step guide based on the experience of COREDO – from strategic structure selection to nuances of tax planning and asset protection. Read to the end to gain not just an action algorithm but strategic ideas that will help take your international business to a new level.

Company Registration in Cyprus: Main Steps and Requirements

Illustration for the section "Company Registration in Cyprus: Main Steps and Requirements" in the article "How to Register a Legal Entity in Cyprus — Step-by-Step Guide"

Choosing a Company Structure: LLC, Holding, or Branch

Key Step: determining the optimal corporate structure in Cyprus. In practice, the COREDO team has implemented projects for creating:

Limited Liability Company (LLC Cyprus) – a universal choice for trading, IT, and financial companies, as well as for international holdings.
Holding Company in Cyprus, a tool for owning assets, tax optimization, and intellectual property protection.
Branch of a Foreign Company: a solution for businesses wanting to maintain control of the main structure but gain access to EU benefits.

In 2025, substance requirements Cyprus have tightened: for recognition of economic presence (economic substance), it is required not only to have a real office and employees but also to confirm the managerial function in Cyprus. COREDO’s practice confirms: ignoring these requirements leads to the loss of tax benefits and the risk of the company being reclassified as an offshore in Cyprus.

Requirements for Founders, Directors, and Corporate Secretary

To register a company in Cyprus, you need:

At least one director (can be non-resident, but a Cypriot is recommended for substance).
One shareholder (individual or legal entity; nominee service Cyprus is allowed).
Corporate Secretary Cyprus: a mandatory figure responsible for corporate governance and interaction with regulators.

Special attention is paid to ultimate beneficial owner (UBO) disclosure Cyprus: since 2023, the Cypriot register of shareholders and beneficiaries is open to regulators and banks. A solution developed by COREDO allows structuring UBO disclosure in accordance with international KYC/AML standards in Cyprus and automatic exchange of tax information (CRS) requirements.

Preparation of Founding Documents and Confirmation of Legal Address

The set of founding documents Cyprus includes:

Charter (Memorandum & Articles of Association).
Affidavit of a Cypriot lawyer, notarized confirmation of document compliance.
Confirmation of legal address in Cyprus (lease agreement, utility bill).

Since 2024, electronic submission of documents Cyprus speeds up the registration process; however, COREDO’s practice has shown: for non-residents, it is critical to properly complete due diligence Cyprus and provide an extended set of supporting documents.

Step-by-Step Guide for Registering a Legal Entity in Cyprus

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Step 1: Reserving and Approving the Company Name

The first step is checking the uniqueness and reserving the name in the Cyprus company register (Department of Registrar of Companies and Intellectual Property). The name should reflect the field of activity and not duplicate existing brands. For certain sectors, approval from relevant regulators is required.

Step 2: Preparing and Submitting a Document Package to the Company Register

The package includes:

Founding documents Cyprus.
Affidavit of a Cypriot lawyer.
Confirmation of legal address Cyprus.
KYC questionnaires for all directors and shareholders.

Electronic submission of documents Cyprus allows for expedited consideration, but non-residents often require personal presence or notarization of documents in their country of residence.

Step 3: Obtaining a Certificate of Registration and Mandatory Certificates

After approval, the following are issued:

Certificate of Incorporation in Cyprus.
Certificate of Directors and Shareholders.
Proof of Registered Address.

These documents are necessary to open a bank account and further licensing activities in Cyprus.

Step 4: Obtaining a Tax Number (TIN) and VAT Registration

To conduct business in Cyprus, the company is required to obtain a Cyprus tax number (TIN) from the tax service and, upon reaching the turnover threshold, register as a VAT payer.

Our experience at COREDO has shown: timely VAT registration in Cyprus is critical for VAT refund and building a transparent scheme of tax residency for a company in Cyprus.

Step 5: Opening a Bank Account for the Company in Cyprus

The process of opening a bank account in Cyprus requires undergoing multi-level KYC and AML procedures. Cyprus international banking requirements involve providing a complete set of corporate documents, proof of source of funds, and a business plan.

COREDO’s practice confirms: for non-residents and new companies, banks may request additional documents, including affidavits, recommendations, and confirmation of substance. It is important to prepare a compliance package in advance to avoid delays.

Step 6: Additional Licenses and Permits (by Type of Activity)

For financial, crypto-, forex, and payment companies, specialized licenses in Cyprus are required (CySEC, Central Bank of Cyprus, etc.). The COREDO team has supported clients in obtaining licenses in the fields of investment services, EMI, PSP, and crypto-assets, ensuring full compliance with international AML/KYC standards and economic presence requirements.

Compliance, AML, and KYC: Key Requirements for Companies in Cyprus

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Economic Presence (Substance) and New Requirements for 2025

As of 2025, substance requirements Cyprus include:

The presence of a real office and employees in Cyprus.
Actual management of the company from the Cyprus territory.
Maintaining corporate accounting Cyprus and conducting audits.

The solution developed by COREDO provides a comprehensive economic presence check, allowing the company to avoid reclassification to offshore in Cyprus and retain tax benefits for companies in Cyprus.

Disclosure of Ultimate Beneficiaries (UBO) and Shareholder Register

Ultimate Beneficial Owner (UBO) disclosure Cyprus has become mandatory for all companies. Beneficial ownership data is entered into the Cyprus shareholder register and is accessible to regulators, banks, and, in certain cases, international authorities under CRS. The COREDO team has implemented projects for ownership structuring in compliance with GDPR requirements and privacy protection.

Taxation and Reporting for Companies in Cyprus

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Corporate Taxes, Benefits, and Obligations

Corporate taxation Cyprus: one of the most attractive in the EU:

Standard corporate tax rate: 12.5%.
Tax benefits for Cyprus companies engaged in holding activities, intellectual property, and international trade business.
Absence of tax on dividends for non-residents when substance is complied with.

However, the tax obligations of holding companies in Cyprus include submitting annual reports, paying corporate levies and fees, and complying with cross-border taxation requirements Cyprus.

Accounting, Auditing, and Automatic Information Exchange (CRS)

All companies are required to maintain accounting records, undergo annual audits, and submit reports and audits for companies in Cyprus. As of 2024, the automatic exchange of tax information (CRS) Cyprus covers all companies with foreign beneficiaries: this requires special attention to the transparency of the corporate structure and the proper handling of corporate reporting.

Practical Aspects: Cost, Timing, Typical Mistakes, and Risks

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Comparison Table: Cost, Timing, and Registration Features for Residents and Non-residents

Parameter	Residents	Non-residents
Registration Time	10-15 working days	12-20 working days
Cost (approx.)	from €2000	from €2500
Required Documents	standard package	+ address confirmation, due diligence
Restrictions	minimal	additional KYC/AML checks

Main Risks and How to Avoid Them

Key Risks:

Errors in choosing the company structure in Cyprus and non-compliance with substance requirements Cyprus.
Insufficient preparation for due diligence Cyprus and UBO disclosure.
Compliance and AML violations in Cyprus: reasons for bank account rejection or operation blocking.

COREDO’s practice has shown: minimizing risks is achieved through early auditing of the corporate structure, preparing a full compliance package, and supporting the registration of a company in Cyprus by a professional team.

Business Scaling and Asset Protection through a Cypriot Company

Opportunities for International Business and Tax Burden Optimization

Cyprus: an ideal platform for international tax planning, business scaling, and EU market entry. The use of holding structures, registration of intellectual property in Cyprus, and application of tax benefits for Cyprus companies allow legal tax burden optimization and asset protection.

Protection of Intellectual Property and Assets

Registration of intellectual property in Cyprus ensures international legal protection, and the structuring of assets through a Cypriot company effectively safeguards against risks and claims. Solutions implemented by the COREDO team include creating holding companies, trusts, and implementing nominee service Cyprus to enhance business confidentiality and security.

Key Conclusions and Practical Recommendations for Entrepreneurs

Company registration in Cyprus: it is not only access to EU markets but also a tool for effective tax planning, asset protection, and business scaling.
It is critically important to correctly choose the company structure, ensure compliance with substance requirements Cyprus, and prepare a complete package of documents for due diligence Cyprus.
For successful bank account opening and obtaining licenses in Cyprus, impeccable compliance and AML preparation is necessary, as well as UBO disclosure in accordance with international standards.
Supporting company registration in Cyprus by an experienced team allows minimizing risks, avoiding common mistakes, and ensuring long-term protection of business interests.

The COREDO team is ready to become your strategic partner at every stage: from choosing the structure and registering the company in Cyprus to comprehensive legal support, licensing, and building an effective corporate governance system.