Cyprus LLC Limited Liability Company

Want an EU company that shields your personal assets and costs little to keep in good standing? A Cyprus LLC could be the answer. On the island, what most people call an LLC is really a private limited company (Ltd). It gives you limited liability protection, so your home and savings stay separate from company debts. You get full access to the EU market, one of the lowest corporate tax rates in Europe, and more than 60 tax treaties. You can own 100% of it from abroad. Most companies are ready in 5–10 business days.

Important update for 2026: the "Private Non-Resident LLC" that paid 0% tax is no longer available. Since 1 January 2026, a locally incorporated company is treated as tax resident unless a double tax treaty says otherwise, and resident companies pay 15% corporate tax. The standard private Ltd is still fully available to new clients.

What Is a Cyprus LLC?

Here is a fact that surprises many people: there is no entity actually called an "LLC" in the Republic of Cyprus. The Cyprus limited liability company is a private company limited by shares, formed under the Cyprus Companies Law, Cap. 113. That law is modeled on the UK Companies Act of 1948.

• Each shareholder is only liable up to the value of their shares.
• A private company can have 1 to 50 shareholders.
• It cannot offer its shares to the public.
• Its name must end in "Limited" or "Ltd."

So when you set up an LLC here, you are really forming a Cyprus Ltd. The label differs, but the benefits are the same ones you'd expect from a US-style LLC.

Types of Limited Companies in Cyprus

The law recognizes several business entities. Here are the limited companies you can choose from:

1. Private company by shares: The most popular choice for foreign owners. This is what we form for you.
2. Public limited company (PLC): Can offer shares to the public. Better suited to large businesses.
3. Company with limited liability by guarantee, with or without share capital: Members promise a fixed sum if the company closes. Best for non-profits, clubs, and charities.

For most founders, the private LLC (a private Ltd) is the right structure in Cyprus. It is simple to run and flexible to grow.

Why Set Up an LLC in Cyprus?

Why do so many international founders set up a limited liability company here instead of elsewhere in the EU? It comes down to low tax, EU credibility, and a legal system that feels familiar.

• EU membership: The island joined the EU in 2004. Your company gets access to the single market and EU trade agreements.
• Low corporate tax: Corporate tax is 15% from 1 January 2026, still one of the lowest rates in the EU.
• Strong treaty network: The country has tax treaties with over 60 countries.
• Single owner allowed: One person can be the only shareholder and director.
• Familiar law: Cyprus law follows English common-law principles, and English is widely spoken.
• Strategic location: The island sits between Europe, the Middle East, and Africa.
• Any nationality: Directors and shareholders can live anywhere in the world.

For more on the island's history as a financial center, see our guide to the advantages of Cyprus as an offshore financial center.

LLC vs Other Business Structures

How does a Cyprus LLC compare with other options? Picking the right business structure early saves you trouble later.

• vs. sole trader: A sole trader is personally liable for every debt. Your Ltd keeps company debts separate from you.
• vs. general partnership: Partners can face unlimited liability. Every shareholder in your Ltd is protected.
• vs. public company: A private company has fewer rules and cannot be forced to sell shares to the public.
• vs. a zero-tax island: Compared with an offshore company in a tax haven, your company pays some tax, but banks and partners see it as a full EU company, not a red flag.

What You Need to Form Your LLC

What do you need to get started? Less than you might think. For every director, shareholder, and beneficial owner, we ask for the documents to form a Cyprus LLC:

• A valid passport
• Personal contact details
• A bank reference letter
• Proof of residential address

You'll also give us:

• Your proposed company name (plus one or two backups)
• A short description of your planned business activities
• The share split between shareholders

Every company also needs a registered office address in Cyprus. This is where official letters and legal papers are sent. We provide it as part of your package.

LLC Registration in Cyprus: Step by Step

How does registration actually work? Here is the full journey from idea to company.

1. Approve the name. We submit your name to the Cyprus Registrar of Companies. It must not match an existing company and must end in "Limited" or "Ltd." Words like "Bank," "Insurance," or "Royal" need special permission.
2. Draft the constitution. A local lawyer prepares the Memorandum of Association (what the company can do) and the articles of association (how it is run and how shareholders deal with each other).
3. File the papers. This is the formal incorporation step. The forms, memorandum, and articles are filed with the Registrar. Once approved, you get your Certificate of Incorporation.
4. Register for tax. The company must obtain a tax identification number from the Cyprus Tax Department within 60 days of incorporation. You register for VAT if your taxable sales pass €15,600 in any 12 months, or are expected to pass it in the next 30 days.
5. Record beneficial owners. Details of the real owners go on the Registrar's register of beneficial owners.
6. Open a bank account. We help you open an account with a local or EU bank.

Government fees at the registrar of companies are small: €10 per proposed name for name approval and €165 to incorporate a company with share capital. Optional fast-track fees apply if you need it sooner. We also recommend working with licensed Cyprus accountants from day one. They keep your books ready for the yearly audit.

Cyprus Tax for Your Company in 2026

Did you know the island raised its corporate tax rate for the first time in two decades this year? From 1 January 2026, it went from 12.5% to 15%. Even so, the tax rate for Cyprus remains among the lowest in the EU.

Who Pays and How Much

• A company that is a tax resident is subject to corporate income tax at 15% on its worldwide profits.
• Since 2026, any locally incorporated company counts as resident for tax purposes unless a tax treaty says otherwise.
• Companies with management, control, or real operations in Cyprus are also resident.

What Stays Tax-Free

The favorable tax exemptions survived the reform. This is why Cyprus LLCs benefit most as holding and investment vehicles:

• Dividends received from subsidiaries are generally exempt.
• Gains from selling shares and other securities are exempt.
• No withholding tax on dividends and interest paid to non-residents in most cases.
• No inheritance tax, no wealth tax, no exchange controls.
• Stamp duty was abolished from 1 January 2026.
• Tax losses can now be carried forward for seven years, up from five.

The double tax treaty network helps you avoid paying tax twice on the same income. Your company files a yearly corporate tax return with the Tax Department. The exact tax treatment depends on where the company is managed and what income it earns, so get advice before you incorporate.

Top Uses for Your LLC Company

What can a Cyprus limited company actually do for you? Quite a lot. Every LLC company we form is built around one of these goals.

• EU holding: Use it as a holding company to hold shares in subsidiaries and receive dividends tax-free in most cases.
• International trading: Import, export, and distribution across Europe.
• Investment company: Hold shares, bonds, and other assets.
• Consultancy and professional services
• IP and copyright holding
• Asset protection as part of a wider plan, often paired with a Cyprus trust

These uses make it a strong base for international business operations.

Key Corporate Features

Want the whole picture at a glance? Here are the key facts about your limited company in Cyprus.

Running Your Company Each Year

What does it take to keep a company in Cyprus in good standing? The paperwork is real, but it is predictable.

1. Keep books and prepare financial statements under IFRS.
2. Get an annual audit. All LLCs in Cyprus need one. There is no small-company exemption.
3. File the annual return (form HE32) with the Registrar. The filing fee is €20. Late filing adds an extra €20 fee plus a daily late-filing penalty.
4. File a corporate tax return with the Tax Department each year.
5. Hold an annual general meeting, anywhere in the world.

Good news: the old €350 annual levy was abolished from 2024 by Companies (Amendment) Law 25(I)/2024.

Corporate Details

Need the finer points? Here's what else you should know about Cyprus companies.

Anonymity and Disclosure

Names of directors, shareholders, and the secretary are on the public register. Your financial statements must accompany each annual return, so they sit on the public file too. Beneficial owners are recorded with the Registrar. Nominee services are available if you want your name kept off the public register.

Company Shares

Your company can issue ordinary, preference, redeemable, and non-voting shares. Bearer shares are not allowed.

Liability

The company is liable for its own debts. Shareholders only risk what they put in.

Directors

At least one director is required. The director can be of any nationality, including Cypriot, and can be a person or a company.

Company Secretary

Every company must appoint a secretary, who can be a person or a company. A sole director cannot also be the secretary, unless the company has only one shareholder (Cap. 113, s.171). In a one-owner company, you can hold both roles.

Principal Corporate Legislation

The Companies Law, Cap. 113, has been in force since 1952 and was updated after EU accession.

Name Restrictions

Names like "Assurance," "Bank," "Building Society," "Insurance," "Royal," "Trust Company," and "Trustee Company" need approval. Words such as "Europe," "Euro," "International," "National," and "Republic" are allowed only in special circumstances, with a sound reason. Names that are misleading, undesirable, or too similar to an existing company are refused. Names may use any language written in the Latin alphabet.

Licensed Activities

Banking, insurance, fund management, collective investment schemes, and trust management need a licence first.

Exchange Controls

There are none.

Shelf Companies

Shelf companies are available, though a new company tailored to your articles is often simpler.

How Is Cyprus Company Formation Changing in 2026?

What's the biggest change for anyone forming a company this year? Tax residency.

The development: On 22 December 2025, the House of Representatives approved a major tax reform. The laws were published in the Official Gazette on 31 December 2025. From 1 January 2026, the corporate tax rate rose from 12.5% to 15%. A company incorporated in Cyprus is now tax resident there unless a treaty says otherwise. Sources: BDO Global, 16 February 2026; KPMG Cyprus, main provisions of the tax reform.

Our insight from 25 years of formations: For two decades, clients asked us how to keep their company outside the local tax net. That question now has a simple answer: you mostly can't. The better question is how to use what the island still offers. Dividend and share-sale exemptions, the treaty network, and EU standing are all intact. Clients running an older "non-resident" structure should review it now, not at their next audit.

Our prediction: We expect the country to compete on stability and substance rather than headline rates. Holding and investment companies will likely stay popular, since the exemptions they rely on survived. Trading companies may weigh the 15% rate more carefully. As with any forecast, treat this as a trend to watch, not a promise.

Frequently Asked Questions

• What is a Cyprus LLC?

  A Cyprus LLC is a private company limited by shares (Ltd) formed under the Companies Law, Cap. 113. Each shareholder's liability is limited to the value of their shares. Cyprus law does not use the term "LLC," but the Ltd works the same way.

• Can a foreigner start a business in Cyprus?

  Yes. Foreigners can set up a company and own 100% of it. Directors and shareholders can be of any nationality and live anywhere. The whole process can be done remotely.

• How much does it cost to form and renew a Cyprus company?

  Our LLC package starts from US$2,200. It covers name approval, government fees, drafting of the memorandum and articles, and your registered office and secretary for the first year. To renew, you pay for the registered office, secretary, annual audit, and the €20 annual return fee. The €350 annual levy was abolished from 2024. We quote renewal costs up front.

• What is the corporate tax rate in Cyprus?

  15% from 1 January 2026, up from 12.5%. Dividends from subsidiaries and gains on shares are generally exempt.

• Can the company still be non-resident and tax-free?

  In most cases, no. Since 1 January 2026, a locally incorporated company is treated as tax resident unless a double tax treaty assigns residency to another country. Get advice before you rely on non-resident status.

• How many shareholders and directors does an LLC need?

  At least one shareholder (up to 50 for a private company) and at least one director. You also need a company secretary.

• How long does Cyprus incorporation take?

  Usually 5 to 10 business days once we have your completed documents.

• Does the company need a registered office?

  Yes. Every company needs a local registered office for official mail and legal notices. We provide one in your package.

• Does the company need an audit?

  Yes. Every company must have its financial statements audited every year under IFRS, with no small-company exemption.

• Can I open a bank account for my LLC?

  Yes. Banks open accounts for companies registered in Cyprus every day. They will ask for ID and proof of address for owners and directors, your company documents, and a short outline of your business.

• Can I use a Cyprus LLC for international business?

  Yes. Many owners use their Ltd as an EU holding company, a trading company, or an investment vehicle for operations across Europe and beyond.

Cyprus LLC Formation with Offshore Protection

Ready to start? Our Cyprus LLC formation package starts from US$2,200.

Package Includes

• Name approval with the Registrar of Companies
• Government Registration Fee (First year)
• Registered Office Address (First year)
• Registered Agent Services (First year)
• Company Secretarial Maintenance
• Certificate of Incorporation
• Memorandum and Articles of Association
• Minutes of the First Directors' Meeting
• Share Certificates
• Register of Members
• FREE Phone and/or email consultations

When you purchase any company formation product from Offshore Protection, you get FREE support from our lawyers for your day-to-day management questions. For a side-by-side look at our other structure, see our Cyprus offshore company page.

Your Ltd gives you limited liability, a 15% tax rate with wide exemptions, and full EU access. It suits holding, trading, and investment plans, and you can own it 100% from abroad. You'll need a yearly audit and annual return, and we handle both. Ready for your EU base? Start your incorporation today, with or without a bank account.