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Direct investment in Cyprus by citizens of E.U. member states

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Investments in Cyprus by citizens (physical or legal persons) of E.U member states (Direct Investment)

Citizens (physical or legal persons of E.U member states) can establish their own business in Cyprus with the following relaxation:

a) Business ownership; 100% is now acceptable. (No need to have local partner)
b) There is no minimum investment requirement. Therefore any amount invested to set up the business would be acceptable.

Exemption to the above relaxation:

Business relating to stockbrokers, financial advice, and financial services will be subject to separate, more strict criteria.

Application Procedure and Local Company Incorporation

1 Application for permission to establish local business by E.U citizens.

Application procedure normally includes the following:

a) Completion of the relevant application form
b) Preparation of a brief financial report for the proposed Investment
c) Apply for a proposed Company Name (two proposed names are normally required)

Fee for this service by law or accountant firms is approx. 250 Cyprus pounds

2 Incorporation of a Local Company

Once approval is obtained for the proposed business then a local Company can be incorporated. The E.U. citizens are the company shareholders. Fee for a local Company incorporation with Authorised share capital up to 5000 Cyprus pounds is 450 Cyprus pounds payable to a local solicitor in advance.

3 Application to the labour office for work permits

After company incorporation an application is made to the labour office for permission to work.

The fee for this application by law or accountant firms is approx. 75 Cyprus pounds

4 Application for Residence and work permit from Immigration

The application for residence and work permit is a separate process. The immigration department has indicated that E.U. citizens are examined with flexible and easy criteria.

The fee for obtaining the immigration residence and work permit is about 100 Cyprus pounds per applicant.



Establishing local company by E.U. citizen

Information required for the application:

1. Description of projected business.

2. Estimated amount of planned investment and list of equipment, machinery, furniture and other movables to be used in the business.

3. Considered company names (two as a minimum).

4. Names of shareholders and number of shares for each shareholder.

5. Description of the profession and qualifications of each shareholder.

6. Copy of data pages of the passport for each shareholder.

7. Residence address outside Cyprus.

8. Proposed company registered office address in Cyprus.

9. Proposed business address (if known at the moment of application).

10. Contact address in Cyprus (if applicable)
- Full postal address
- Telephone and fax numbers
- E-mail address

11. Names and addresses of proposed directors

12. Directors profession/occupation

13. Name and address of company secretary

Estimated cost of incorporation:
  Cyprus pounds
Application to own shares in a local company (non refundable)

250

Legal company incorporation

450

Application to labour office for permission to work

75

Work and Residence permit from Immigration (per applicant)

100

VAT Registration

20

Tax Registration for company and directors

50

Social Insurance Registration

30

Fees are usually paid in advance at each stage and as the work progresses.

Other services

1. Bookkeeping and VAT returns - based on time (min 30 Cyprus pounds a month)

2. Tax and business consulting - based on time

3. Annual accounts and audit - annual fee 450 Cyprus pounds

4. Payroll and Social Security contributions - annual 60 Cyprus pounds per employee

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