The cost of registering a Cyprus company is the first question that potential clients ask.
Here we have compiled a “what to look for guide,” so that you know what to look for when choosing a law firm or company provider for your new company.
Also, take a look at our Cyprus Company Package, an exclusive offer to register a company in Cyprus at a great discount.
There are 4 kinds of fees involved when setting up a Cyprus company:
- The registration or set up fee
- The annual fees
- The accounting/auditing fee
- The annual expenses payable to the Registrar of Companies
1. The registration or set up fee
This is the fee that you pay to create the company. It is paid only once.
You can find Cyprus companies from €1200 to €3000. The price depends on the service provider. Big law firms usually price their companies from €2500, whereas one man law firms offer half the price.
The key is “after sale service” i.e. whether the provider will be able to cater to your needs after the company is set up.
2. The annual fees
Annual fees include the fees for the services of nominees, secretary and registered office.
Nominee services are divided into:
- Nominee shareholders and
- Nominee directors
Nominees are usually lawyers or accountants and are used in order to ensure the anonymity of the client. To read more about anonymity click here.
In addition, a company has to designate a registered office in Cyprus and have a secretary.
The registered office is usually the address of the office or the lawyer that incorporates the company. For example, the companies registered by Christophi & Associates LLC have the address at 20, Spyrou Kyprianou Avenue, CHAPO CENTRAL,2nd floor, office 201, 1075 Nicosia, Cyprus. Of course, it does not have to be the address of your lawyer but it has to be a physical address in Cyprus.
Finally, a Cyprus company must have a secretary which is usually the lawyer that incorporates the company. This is done for convenience reasons since the lawyer, in capacity of a secretary, can prepare and sign any forms or applications for the Registrar of Companies without having to disturb the client every time.
So, annual fees may have to be paid for 4 services (nominee shareholders, directors, secretary and registered office) depending on the requirements of the client.
3. The accounting/auditing fees
Accounting and auditing fees vary. They depend on:
- the number of transactions the company executes each month/year
- if your accountant is a small accounting firm or one of the big firms like PWC, KPMG etc.
A Cyprus company needs to register with the Inland Revenue Office and get a tax number. From then on it has to file audited accounts every year and pay tax, if appropriate.
Some companies are also registered with the VAT Department and get a VAT number. In such case, they have to file VAT return every three months.
Accounting / auditing fees range from €1200 to €3000 per year.
4. The annual expenses payable to the Registrar of Companies
Each year a company has to file an annual return (annual report) with the Registrar of Companies. This report records the changes that took place in the company during the year, e.g. changes in shareholders, capital, directors etc.
The stamp cost is around €100. From there on it is a matter of what the lawyer or accountant will charge for preparing and filing the report.
If you want to open a bank account, or need power of attorney then this involves additional fees. You should make sure that these are agreed separately.
Register with us and save – the Cyprus Company Package
With us you can register a company for €2000.
This registration fee includes the costs of the authorized share capital AND nominee fees for the 1st year of operation of the company.
So you save around €2400.
If you choose all 4 nominee services – nominee directors, nominee shareholder, secretary and registered office – we offer a discount of 15% per year so the total cost per year after the 1st year of operation is €2040 instead of €2400.
In addition to that, opening a bank account with internet banking, that normally cost €600, may be done free of charge.
This brings your savings to €3000 the first year and €350 per year the following years of operation your Cyprus company.