How much does it cost to register and maintain a Cyprus company?
One of the principal question clients ask before deciding in which jurisdiction to set up their business is the cost of registration and running of a company.
This article focuses solemnly in the Jurisdiction of Cyprus.
The fees involved when setting up a Cyprus company:
- The registration or set up fee
- The annual fees for nominee services
- The accounting & auditing fee
- The annual expenses payable to the Registrar of Companies
1. The registration or set up fee
Our fees for incorporating a Cyprus company start at €1.500 plus 19% VAT if applicable. These fees include the incorporation costs and certified documents issued by the Registrar of Companies (ROC).
2. The annual fees for nominee services
Annual fees include the fees for the services of nominees, secretary and registered office. We advise all clients that are abroad to appoint our law firm as your secretary as we will be able to make any changes in the ROC on your behalf in a very timely and cost-effective manner. Fees available upon request.
3. The accounting & auditing fees
It is compulsory to have hire Accounting & auditing services for your company. The fees for such services vary substantially depending on the following factors:
- the number of transactions the company executes each month/year
- the size of the firm you decide to hire
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.
Auditing & Income Tax (preparation of IR4) fees start at €1.500 plus VAT per year. Moreover, if the company wishes to outsource the accounting, payroll and VAT services fees start at €250 per month.
Please note that the above fees vary and increase depending on the requirements of each company.
4. The annual levy payable to the ROC
Each year a company has to file an annual return (annual report) with the ROC known as HE 32 which records the changes that took place in the company during the year. With this report the financial accounts of the company and all relevant minutes of the company need to be submitted at the ROC.
Our fees for the preparation and submission of annual report to the ROC is €180 plus VAT.
Special Government Levy
All companies registered in the Republic of Cyprus must pay at the ROC an annual levy of €350. For companies that fall within a group the total amount is capped at €20.000. Non-compliance may result in penalties and eventually striking off.
If you want to open a corporate bank account or require other administrative or legal services these shall be agreed separately.