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Investment and business structuring law in Cyprus governs how individuals and entities form, own, and manage businesses and assets from a legal and tax perspective. In Egkomi, a central suburb of Nicosia, many investors use Cyprus-based structures to hold shares, own real estate, or operate cross-border ventures. The framework covers company formation, governance, cross-border structuring, and compliance with anti-money laundering and tax rules.
Key parties involved include your attorney or solicitor, the Registrar of Companies and Official Receiver, the Tax Department, and regulatory bodies such as the Cyprus Securities and Exchange Commission for investment funds and regulated entities. Understanding how these elements fit together helps you minimize risk and ensure ongoing compliance from the outset.
The Cyprus legal framework for investment and business structuring includes several key statutes. In practice, a Cyprus company operates under these rules, and Egkomi residents must follow them for compliant business activity.
Companies Law Cap 113 governs the formation, registration, corporate governance, directors, and annual filings of Cypriot companies. The Registrar of Companies and Official Receiver administers filings, company name searches, and statutory requirements. See the Registrar of Companies website for official guidance and forms: registrar.gov.cy.
Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007 and related AML/CFT regulations require customer due diligence, benefical ownership verification, and ongoing transaction monitoring. Compliance is overseen by the appropriate supervisory authorities, including the Cyprus Securities and Exchange Commission for investment firms and funds, and the Central Bank where applicable. For guidance, see CySEC and the Registrar of Companies resources: CySEC and Registrar of Companies.
Income Tax Law (as amended) governs taxation of corporate profits and the overall tax regime in Cyprus. Cyprus offers a corporate tax framework designed to be attractive for resident companies, and the Tax Department provides official guidance on rates, reliefs, and compliance obligations. For official tax information, see Cyprus Tax Department.
Cyprus corporate income tax rate is 12.5% on profits earned by Cyprus resident companies.
Source: Cyprus Tax Department
A lawyer handles entity selection, drafts the articles of association, registers the company with the Registrar of Companies, and ensures AML due diligence is in place. They also coordinate with local notaries for property or equity transfers and prepare an initial governance framework.
You need a proposed name search, incorporation documents, and details of directors and shareholders. The Registrar of Companies processes filings, and you will receive an official registration number once approved. The process typically takes 1-3 weeks if documentation is complete.
Initial structure design and due diligence can take 1-2 weeks. Company registration is usually 1-3 weeks after submission. Finalising share ownership and bank accounts may extend the timeline by 2-4 weeks, depending on responses from authorities and banks.
Vat registration is required if your Cyprus business surpasses the registration threshold or engages in taxable activities. A local tax advisor can calculate when VAT registration is necessary and explain filing obligations.
Costs vary by complexity, but typical fees for company formation, basic agreements, and AML setup range from a few thousand to several thousand euros. Always obtain a written engagement letter with a clear fee schedule.
You will need copies of passports or ID for directors and beneficial owners, proof of address, the chosen company name, and consent from directors. Additional documents may be requested for property transactions or cross-border structures.
Cyprus allows a company to be managed by a non-resident director, but many structures use local nominees or residents for practical governance. Your lawyer can tailor a compliant governance arrangement aligned with tax and AML requirements.
Due diligence includes verifying identities, assessing source of funds, checking beneficial ownership, and screening for sanctions or adverse information. The results guide ongoing monitoring and risk categorisation.
Yes. A Cyprus SPV can hold assets or subsidiaries abroad, with appropriate corporate governance and tax planning. A lawyer will draft terms to mitigate risk and ensure compliance with both Cypriot and foreign laws.
Cyprus companies must perform customer due diligence, maintain records, monitor transactions, and report suspicious activity to the competent authorities. A structured policy helps meet regulatory expectations and reduces risk of penalties.
A sole trader bears personal liability and faces limited growth options. A Cyprus company provides limited liability, potential tax optimization, and enhanced credibility for investors and lenders.
Yes. A lawyer helps with title checks, due diligence on property ownership, review of contracts, and coordinating closing with a local notary and the Land Registry. This reduces the risk of defective titles or hidden encumbrances.
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Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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