Trustank Corporate

General

Why should I choose Cyprus to move my business?
Cyprus offers a unique combination of EU membership, a competitive tax system, strong legal certainty, and a business friendly regulatory environment. It provides access to EU markets, an extensive double tax treaty network, and a stable corporate framework that supports international operations while maintaining straightforward compliance.
How fast can a company be registered and what is required?
Company incorporation usually takes between 10 and 20 working days. The process is fully remote and requires basic shareholder documentation, including a passport copy and proof of address. No physical presence is required during incorporation.
What are the next steps after the company is registered?
After incorporation, the company must be registered with the Cyprus Tax Department to obtain a Tax Identification Code, update the Ultimate Beneficial Owner registry, register for VAT if applicable, set up bookkeeping procedures, and register as an employer if staff will be hired.
Do I need to be in Cyprus to operate my company?
Physical presence is not mandatory for daily operations. However, it is advisable to appoint at least one Cyprus resident director to ensure proper management, handle local procedures, and strengthen the company’s substance, reducing the risk of challenges by tax authorities.
If I move to Cyprus, do I stop paying taxes in my home country?
Tax residency is generally determined by the 183 day rule or the Cyprus specific 60 day rule, which is considered one of the most flexible regimes in Europe. Once you become a Cyprus tax resident, Cyprus applies double tax treaty protections, preventing double taxation on the same income in another country.
Why do many people choose Cyprus over Dubai?
While Dubai offers attractive tax rates, its structure is more complex and costly, involving multiple regimes and higher setup and living expenses. Cyprus provides a simpler company structure, lower operating costs, access to EU law, free public healthcare for tax residents, and a significantly lower cost of living.
Why is the legal system in Cyprus considered strong for companies?
Cyprus follows the UK Common Law system, supported by extensive case law and well established judicial principles. This offers predictability, clarity, and legal stability in corporate, commercial, and shareholder matters, which is especially important for international businesses.
Do you offer special pricing for bulk or partner arrangements?
Yes. We provide structured packages and preferential pricing for bulk projects and long term cooperation with international service providers, advisors, and business partners.

Company Registration

How long does incorporation take?
Typically 5 to 10 working days once the name is approved and documents are in order.
What type of company do most entrepreneurs use?
A private company limited by shares. One shareholder is enough, there is no minimum share capital, and liability is limited to unpaid share capital.
Do I need a local director or secretary?
Every company must have at least one director and a secretary. A director does not need to be local. However, appointing non local officers may raise questions about where effective management and control are exercised, which can significantly affect the company’s tax residency and liabilities.
What are my post incorporation steps?
Within 60 days register with the Tax Department for a tax number. Register for VAT if taxable supplies exceed the threshold. Register as an employer with Social Insurance before hiring. Within 90 days update the UBO registry, in order to do that a verified GOV.cy account is required.
When do I need audited accounts and an annual return?
All Cyprus companies are required to prepare audited financial statements and file an annual return each year through licensed auditors. We handle this for you.
More on Beneficial Ownership register?
Keep UBO information current and complete the annual confirmation window. Public access is restricted. Non compliance risks penalties and possible strike off.
Do nominees shareholders hide ownership?
Beneficial owners must be registered in the UBO system and disclosed to banks and other obliged entities. A beneficial owner is any natural person who holds 25 percent or more of the company’s shares. Nominee shareholders can keep the UBO’s identity out of public view, but it must still be disclosed to the authorities and obliged entities.
Banking is difficult. Any alternatives?
Banks apply strict AML and KYC. Depending on activity, Electronic Money Institutions can offer payment accounts.
Which activities need extra licenses?
Investment services require CySEC authorization. Crypto asset service providers must register and transition to MiCA. Payment and e money services are licensed by the Central Bank.
Can a non EU person own and direct a Cyprus company?
Yes. There are no nationality restrictions for shareholders.
How can I get Cyprus citizenship through company setup?
1) Company of Foreign Interests. Register your company with the BFU, show the required €200,000 investment, and operate with real substance.
2) Employ yourself as high skilled staff. You can be hired by your own BFU approved company if you hold a genuine role on Cyprus payroll with a salary from about €2,500 gross per month and meet all permit requirements.
3) Highly skilled professionals can apply for Citizenship after 3 years of residence.
When can a court pierce the corporate veil?
Only in exceptional cases such as sham structures to evade existing obligations or where statute provides. Poor governance alone is not enough.
When shareholders pay 0% on their dividend income?
Cyprus tax residents who are non domiciled are exempt from Special Defence Contribution on dividends for 17 years from the date they become tax resident. Banks or payers may request a non dom declaration. General Health System contributions still apply up to the annual cap. Use our dividends calculator to see the exact amount payable.
What company expenses are tax deductible in Cyprus?
Cyprus allows deductions for expenses incurred wholly and exclusively for generating taxable income, provided they are properly documented. Typical deductible items include staff costs, office rent, utilities, professional and audit fees, marketing, travel for business, bad debt write offs when conditions are met, interest subject to rules, and tax depreciation via capital allowances on assets like plant, equipment, computers and commercial buildings.
What is Cyprus’s 60 day rule for tax residency?
You can be a Cyprus tax resident in a calendar year if all of these apply. You spend at least 60 days in Cyprus in that year. You are not tax resident in any other country and you do not reside in any single other country for more than 183 days. You carry on a business and or are employed in Cyprus and or hold an office in a Cyprus tax resident company, and this is not terminated before year end. You maintain a permanent home in Cyprus, owned or rented.
Why is a Cyprus Tax Residence Certificate important?
A Tax Residence Certificate is official proof that you are tax resident in Cyprus for a specific year. Foreign tax authorities and payers rely on it to apply double tax treaty benefits and to avoid double taxation.

Nominee Services

What is a nominee and what is it not?
A nominee is an officer who acts on your instructions within agreed limits. It does not hide the UBO from banks or authorities and it is not a way to avoid lawful obligations.
Who sees the UBO?
Banks, auditors and competent authorities. Routine public records show officers and the registered office, not the UBO.
Why use a nominee director?
For privacy on public filings, continuity when the owner travels, and to help show local substance if you want Cyprus tax residency for the company.
Why use a nominee shareholder?
To keep your name out of the shareholder column in day to day extracts. We use a declaration of trust and record the beneficiary in the internal register and UBO register.
Do I need a local director or secretary?
Every company must have at least one director and a secretary. A director does not need to be local. However, appointing non-local officers may raise questions about where effective management and control are exercised, which can significantly affect the company’s tax residency and liabilities.
How are powers controlled?
We agree written signing rules before any appointment. Typical limits include value thresholds, dual signatures and items that always need your written approval.
More on Beneficial Ownership register?
Keep UBO information current and complete the annual confirmation window. Public access is restricted. Non compliance risks penalties and possible strike off.
Do nominees control the bank account?
Only if you choose that. Bank signatories can be limited, dual or separate from officers. You decide and we document it.
Banking is difficult. Any alternatives?
Banks apply strict AML and KYC. Depending on activity, Electronic Money Institutions can offer payment accounts.
How are board decisions made?
You give clear instructions. We prepare minutes and resolutions, hold meetings as needed and keep a tidy record that banks and auditors understand.
What about conflicts of interest?
Nominees disclose any conflict and step back where required. You can add approval steps for sensitive matters.
How fast can we start?
Once KYC clears and signing rules are agreed, appointments and filings are handled quickly and you get clean officer certificates.
Will my data be protected?
Yes. We handle data under Cyprus and EU privacy rules. Access is limited to staff who need it for your engagement.
Can we switch from nominee to your own officer?
Yes. We file the changes, update registers and pass the file to your new officer.
Can I switch provider and move to Trustank?
Yes. If you are not happy with your current provider, we can take over.

Administrative

Administrative services ensure your company is properly registered, connected to government systems and able to operate legally. Without correct setup, you risk delays, penalties and problems with banks or regulators.

The Gov.cy account gives access to key government platforms and digital services. It is required for filings, updates and communication with authorities.

What are Registrar eFiling codes used for?

Tax registration is mandatory within 60 days from incorporation. Failure to register on time may result in penalties and compliance issues.

When do I need VAT registration?

Yes. Every Cyprus company must declare its Ultimate Beneficial Owners, meaning individuals holding more than 25 percent of shares or control. The information is filed with the Registrar, must be kept up to date and confirmed annually. Non compliance may lead to penalties and potential strike off.

VIES registration is required if your company provides services or sells goods to other EU businesses. It allows proper reporting of intra-Community transactions.

Do I need to register with Social Insurance even if I have no employees?

Yes. We assist with the process, prepare the required documentation and guide you through bank or EMI onboarding. Approval depends on your business profile and compliance checks.

Everything is handled 100% remotely.

What happens if these steps are not completed correctly?

OSS (One Stop Shop) is used by businesses that sell goods or services to consumers in other EU countries. It allows you to report and pay VAT for all EU sales through Cyprus instead of registering in multiple countries. It is typically required for e-commerce and digital service providers exceeding EU thresholds.

Audit

Why is an audit compulsory in Cyprus?
Because the Cyprus Companies Law (Cap. 113) requires companies to prepare IFRS financial statements and have them independently audited by a licensed statutory auditor, unless a specific statutory exemption applies. This is a legal obligation, not a choice.
Does the audit requirement apply even if my company is inactive or has low activity?
Yes. Dormant or low activity companies are still required to comply with statutory audit obligations unless they formally qualify for and meet the conditions of the exemption. Zero or minimal transactions do not automatically remove the audit requirement.
Are there any companies exempt from a statutory audit?
Only certain small private limited companies may qualify for an exemption, based on turnover and total assets thresholds. Even in those cases, IFRS financial statements must still be prepared and a review engagement by a licensed auditor is required instead of a full audit.
What happens if I do not complete the audit on time?
Late or missing audits can lead to penalties, rejected filings with the Registrar of Companies, issues with the Tax Department, and difficulties with banks or counterparties. Repeated non compliance can also increase regulatory scrutiny.
Why does the law require an independent auditor?
An independent auditor provides objective assurance that the financial statements present a true and fair view and are free from material misstatement. This protects creditors, shareholders, counterparties, and the integrity of the tax system.
Is the audit only for the authorities, or does it benefit my business as well?
While audits are required by law, they also benefit the business by identifying errors, weak controls, and reporting issues early. Properly audited accounts strengthen credibility with banks, investors, and partners and support informed management decisions.
Who is responsible for ensuring audit compliance?
The responsibility rests with the company’s directors. Ensuring proper records, timely audits, and accurate filings forms part of directors’ statutory duties under Cyprus law.

Legal

What legal services do you offer?
We advise and act across corporate litigation, shareholder disputes, agreements and transactions, legal advisory work for boards and founders, family office and wealth structuring, regulatory and compliance, and relocation matters connected with Cyprus.
Is Cyprus a strong jurisdiction for contracts and disputes?
Yes. Cyprus applies common law principles and is generally receptive to clear written agreements. Courts can grant interim measures and remedies that make enforcement practical, not just theoretical.
What is an interim injunction and when is it used?
An interim injunction is a court order that preserves the situation until the main case is decided. It can stop harmful actions, freeze assets, or protect rights where waiting would cause serious or irreversible damage.
Can you seek urgent protective measures quickly?
Yes. If the facts justify urgency, we prepare an evidence driven application and pursue interim relief to preserve assets, evidence, or governance rights while the dispute proceeds.
Do you handle shareholder disputes and minority oppression claims?
Yes. We handle disputes involving minority shareholder rights, unfair prejudice, breaches of shareholders agreements, dilution issues, diversion of business, and misuse of control.
What can be done if directors breach their duties?
Options may include court applications for protective relief, claims for losses caused by misconduct, and remedies to restore proper governance. The correct route depends on the facts, evidence, and company documents.
How do you approach deadlock situations in a company?
We first map the real cause of the deadlock, the voting mechanics, and the contract leverage. Then we move to a solution track that can include negotiated exits, governance orders, or litigation where required.
Can you freeze assets or stop dissipation during a dispute?
Where the legal tests are met, yes. We can seek interim measures to prevent asset dissipation, preserve shares, secure funds, or stop actions that would undermine the final outcome.
What is the typical litigation process in Cyprus?
A typical process includes pleadings, interim applications if needed, evidence exchange, hearings, and judgment. Strategy depends on urgency, evidence quality, and whether settlement can protect your position faster.
Do you draft and negotiate shareholders agreements?
Yes. We design shareholders agreements that reduce conflict and clarify control, reserved matters, exit routes, dispute resolution, non compete terms, and protections for minority shareholders.
What agreements do you usually handle for businesses?
Commercial contracts, service and supplier agreements, NDAs, consulting contracts, licensing terms, SPAs, asset sale agreements, and tailored terms for cross border transactions.
Do you run legal due diligence before an acquisition or investment?
Yes. We review corporate records, key contracts, disputes, compliance exposure, and ownership issues, then deliver a practical risk report with proposed protections and fixes.
Can you issue legal opinions on enforceability and key clauses?
Yes. We provide clear written advice on enforceability, warranties, indemnities, limitation clauses, governing law choices, dispute resolution clauses, and practical enforcement risk.
What is a Family Office and how do you support it legally?
A family office manages long term wealth, governance, and investments. We support structure design, governance rules, succession planning, asset acquisition, private investment documentation, and dispute prevention across borders.
Do you help set up trusts and asset holding structures?
Yes. We structure trusts and holding vehicles to match the real goal, such as succession, asset protection, confidentiality, or investment governance, and we document them so they are workable in practice.
Can a trust protect assets from future claims?
A properly designed trust can offer strong protection, but timing and documentation matter. Asset transfers should be planned early and supported by a clear lawful purpose and proper governance.
Do you handle regulatory, AML, and privacy compliance?
Yes. We support governance frameworks, AML policies and controls, GDPR readiness, and regulatory responses. We also assist regulated businesses with licensing packs and ongoing compliance support.
Can you assist with relocation and Cyprus residence planning?
Yes. We assist with lawful residence routes through investment or employment, employer permits, and practical relocation matters, including coordinating the legal setup for family and business.
How do we start and what do you need from us?
Send a short summary of the issue, key dates, the parties involved, and the documents you already have. We then propose a clear scope and next steps. Contact us here: https://www.setupcompanycyprus.com/contact.

Accounting

What do you need from the client each month?
Invoices in and out, bank or EMI statements, payroll changes, and any contracts that affect revenue or costs.
How fast can you start?
As soon as onboarding is done and we have portal access and opening balances. We can take over mid-year and tidy the books to date.
What’s the VAT registration threshold in Cyprus?
€15,600 of taxable turnover on a rolling 12-month basis. We track it and let you know when registration is required. Many clients choose to register from day one if they need to issue VAT invoices immediately.
How often are VAT and VIES filed?
VAT is usually quarterly. VIES is monthly for intra-EU supplies.
Can you work with our existing auditor?
Yes. We prepare a clean audit pack, answer routine queries, and keep numbers aligned with minutes and contracts.
What about provisional tax?
We calculate provisional tax and handle the two instalments each year, then true-up at year end to avoid interest and penalties.
How does provisional tax work?
Companies estimate current-year profit and pay in two equal instalments on 31 July and 31 December, with a revision possible later if needed.
Can you get a Tax Residency Certificate or Tax Clearance?
Yes. We prepare the application and supporting schedules and file it with the Tax Department.
How are dividends handled from an accounting or tax angle?
We calculate and document dividends, update registers, and handle SDC or GHS and any filings. You receive clear statements per shareholder.
Are my expenses deductible?
If expenses are wholly and exclusively for the business and properly documented, they are generally deductible. An experienced accountant can advise on handling them in the company’s best interests.
What if volumes spike as we grow?
We scale bookkeeping and payroll capacity, automate data capture where sensible, and adjust the package so filings remain on time and audit packs stay clean.
Can we switch from our current accountant to you?
Yes. We run onboarding, collect the handover file, reconcile to date, and continue without gaps. We can also speak to your old provider if you prefer.
How do you keep us on track with deadlines?
We maintain a compliance calendar for VAT, VIES, payroll, Annual Return and UBO confirmation, with reminders before anything is due.
Is our data safe?
Yes. We follow Cyprus and EU privacy rules, restrict access to need-to-know staff, and maintain a clean digital file for audits and banks.
Do you offer fixed pricing?
Yes. One contract covers the bundle, including accounting, VAT or VIES, payroll, and the audit handover, with no hidden fees.
What is the Cyprus tax year and when is the corporate return due?
Calendar year from 1 January to 31 December. The TD4 corporate return is due 31 March of the second year after the tax year. The balancing tax is generally due 1 August of the following year.
What is the Interest Limitation Rule (ILR)?
Net interest, also called exceeding borrowing costs, is deductible up to 30% of tax-EBITDA or €3m, whichever is higher. Unused interest capacity and disallowed interest can be carried forward up to 5 years, subject to carve-outs and group rules.
Does Cyprus have an IP box?
Yes. 80% deduction on qualifying profits from qualifying IP, aligned with the Nexus approach.
SDC on dividends, who pays?
Individuals who are Cyprus tax-resident and domiciled pay SDC 17% on dividends. Non-dom individuals are exempt from SDC on dividends. Use our Dividends Calculator.
Is GHS (GeSY) due on dividends?
Yes. Dividends to Cyprus tax-resident individuals, dom or non-dom, attract GHS 2.65%, subject to the €180,000 annual income cap for contributions. These are withheld at source and reported or paid via the Tax Department.
Are there outbound withholding taxes (WHT)?
Generally no WHT on dividends or interest paid to non-residents. No WHT on royalties for rights used abroad except for defensive WHT on payments to entities in EU Annex I non-cooperative or certain low-tax jurisdictions. Rates can apply such as 17% on dividends, with other rates for interest or royalties under recent laws.
Capital gains, what’s taxed?
20% CGT on gains from Cyprus-situated immovable property and on shares of companies that directly or indirectly derive 50% or more of value from Cyprus immovable property. Listed shares are excluded.
How does the 60-day tax residency rule work in Cyprus?
It is an alternative to the 183-day rule. You can be Cyprus tax-resident if the statutory 60-day conditions are met within the calendar year. See the next question for the exact conditions.
How are days counted for the 60-day or 183-day rules?
In the same calendar year, you must: (1) spend at least 60 days in Cyprus; (2) not spend over 183 days in any other single country; (3) not be tax-resident anywhere else; (4) have ties to Cyprus such as carrying on a business, being employed, or holding an office like director of a Cyprus tax-resident company; and (5) have a permanent home in Cyprus, owned or rented. All conditions must be met within the year.
What confirms tax residency for treaty relief?
A Tax Residency Certificate from the Cyprus Tax Department, often required by banks or counterparties. We handle the application and schedules.
How does the non-dom status interact with dividends?
Non-dom Cyprus residents do not pay SDC on dividends or interest. GHS on passive income can still apply up to the annual cap.
Do Cyprus companies prepare IFRS accounts and audit?
Yes. IFRS financials and a mandatory annual audit by licensed auditors are standard, which supports banking and due diligence.
What is a Cyprus tax ruling?
A written advance ruling from the Tax Department on how tax law applies to your specific facts such as NID, IP, PE, withholding, or residency. It is generally binding on the Tax Department provided your facts are complete and accurate and the law does not change.
When should I seek a tax ruling?
When a material transaction needs certainty such as financings, IP licensing, complex restructurings, cross-border dividends, interest or royalties, or to support management-and-control evidence. We prepare the facts, legal analysis, supporting documents, and handle the submission.
Do you work with EU VAT OSS and IOSS?
Yes. We register and file OSS for intra-EU B2C distance sales and IOSS for low-value imports up to €150 sold to EU consumers. We align your invoicing, evidence, and returns so rates apply correctly per customer location.