The incorporation of a Cyprus company is a popular option that foreign non-residents consider.
This is especially true when they are looking to set up an offshore entity that still has access to EU banking, payment processing, and SEPA transfers.
That said, opening an EU bank account isn’t as easy as registering a company.
With this in mind, if you’re interested in learning more about banking in Cyprus and how to open a business bank account in Cyprus, you can access our free guide for more insights.
In this article, we’ll talk about the pros and cons of incorporating in Cyprus and suggest a few alternatives you may want to consider as well.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Incorporation of a Cyprus Company
- Alternative Incorporation Jurisdictions
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Incorporation of a Cyprus Company
It is 100% possible for foreigners to incorporate a Cyprus company. However, whether or not Cyprus is the best jurisdiction for you will depend on a number of different variables, which we’ll discuss below.
First, let’s cover some of the reasons why incorporating in Cyprus might be of interest to you.
Cyprus Company Registration Benefits
- Low corporate tax rates
- Access to EU banks and payment processors
- Low-cost SEPA transfers
- Reputation of having an EU company
- Benefit of being both onshore and offshore
The benefits listed above are actually unique to Cyprus and Malta, both members of the EU. That said, there tend to be more business banking options available for Cyprus companies, making it a more common choice for foreign entrepreneurs.
Now, let’s take a look at the variables that can impact whether Cyprus is the right jurisdiction for you. This is because Cyprus might not be a suitable jurisdiction for you. Instead, there are other jurisdictions worth considering. For example, Georgia is a low-cost and low-tax jurisdiction and is open to foreigners. There are many corporate advantages and benefits to incorporating in Georgia, which you can read more about by clicking the link above.
Note: Before deciding on a jurisdiction for incorporation, you should speak with a qualified advisor to help you sort through any tax-related considerations that could impact both you and your business.
Variables to Consider When Deciding Where to Incorporate
- Does the jurisdiction you are considering have an acceptable level of perceived risk in the jurisdictions where you want to conduct business?
- Will you be able to open bank accounts and access payment processing in the jurisdictions you desire?
- Are you comfortable paying the annual reporting and maintenance fees of maintaining the entity?
- Does the corporate registry in the jurisdiction you are considering offer a level of privacy that you are comfortable with?
There are many other variables to consider. However, the list above includes many of the considerations that service providers and lawyers often skip over. And, not surprisingly, the reason they skip over these considerations is because they don’t want you to incorporate in another jurisdiction. In other words, they probably can’t help you incorporate in other locations.
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Alternative Incorporation Jurisdictions
While Cyprus is a popular jurisdiction, we encourage our members to consider all of the options available to them before making a final decision on where to incorporate.
In fact, they often find jurisdictions with easier access to banking and payment processing, more privacy, and fewer maintenance costs. Additionally, in certain instances, they can even identify corporate structures that can operate 100% tax free.
Here are a few examples that you may want to consider:
- US LLC
- UK LLP
- BVI BC
Of course, there are many other jurisdictions that you can consider as well. However, based on the experience of our members, these three options tend to have more banking and payment processing options available to them.
If you would like more information on these or other alternative jurisdictions, you can search our archive from the main menu above.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to incorporate a Cyprus company. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Incorporate a Company in Cyprus?
If you would like to incorporate a company in Cyprus, the first step is contacting a corporate service provider in Cyprus that specializes in company registration. Importantly, if you choose to work with an external service provider (e.g. a firm not located in Cyprus), they will still be outsourcing to a local firm and then charging an additional premium for their extra services.
Is It Easy to Register a Company in Cyprus?
Yes, it is easy to register a company in Cyprus if you find a reputable service provider and are willing to pay the required fees. That said, it’s important to consider whether Cyprus is the best jurisdiction for your needs. In fact, you may find that other alternatives are less expensive to maintain, offer better banking options, and provide easier access to payment processing and other necessary services.
Do You Want Help Opening Bank Accounts?
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And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
You can learn more on the products page from the main menu above.
