Key Takeaways
- First-year costs combine government and registrar fees, registered office and secretary services, share capital, stamp duty, professional formation charges and the annual levy.
- Registrar steps such as name approval and registration carry their own fees that you pay before the company is formed.
- Share capital and stamp duty affect what you owe at incorporation, so the structure you choose changes the upfront amount.
- Total cost varies with your setup, making a realistic all-in first-year figure more useful than any single fee in isolation.
Understanding the Cost of Incorporating a Company in Cyprus
A Cyprus Ltd is the local equivalent of a UK private limited company or a German GmbH, with shareholder liability capped at the value of shares. Formation is governed by the Companies Law, Cap. 113, amended by Laws 18(I)/2024 and 25(I)/2024.
One structural point shapes your costs from the outset. Only lawyers licensed by the Cyprus Bar Association may prepare and sign the incorporation documents, so a non-resident owner cannot file directly and will engage a corporate service provider or law firm.
Two old line items no longer apply: the €350 annual levy and government stamp duty have both been abolished, which simplifies the cost picture. Government and registry fees carry no VAT; the standard 19% VAT applies only to your provider's professional fees.
Corporate income tax in Cyprus rose to 15% from 1 January 2026, up from the long-standing 12.5%. Any source still quoting 12.5% is out of date.
Government and Registrar of Companies Fees: Name Approval and Registration
Name approval is a separate prior step. You file the HE1 form with the DRCIP listing up to three preferred names in order of preference, at €10 for standard handling or €30 for accelerated.
Standard turnaround runs roughly three to five working days; the expedited route is about one working day. An approved name is reserved for six months, after which a fresh application is needed if the company has not yet been registered. Sensitive words such as "Bank," "Trust," "Royal," and "Insurance" require ministerial pre-approval.
The registration filing fee covers forms HE1, HE2 (registered office), and HE3 (directors and secretary) submitted together. For the standard €1,000 authorised share capital, this base fee is €165.
| Item | Standard | Expedited |
|---|---|---|
| Name reservation (HE1) | €10 | €30 |
| Registration (HE1, HE2, HE3) | €165 | €265 |
| Certified copies of certificates (if needed) | €120 | €120 |
| Processing time | 3–4 weeks | 6–8 working days |
The accelerated surcharge of €100 is the figure published on the DRCIP's own incorporation guidance. Some professional sources quote a higher bundled surcharge, which likely reflects a provider's own markup rather than the government charge; confirm the live registry fee before you rely on a single number.
On approval, the DRCIP issues the Certificate of Incorporation along with certified Memorandum and Articles and certificates of directors, shareholders, and registered office.
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Registered Office and Secretary Costs in the First Year
A Cyprus registered office address is a statutory requirement, though it can be your accountant's office or a virtual address rather than a separate physical workspace. Most formation packages bundle the registered office and a resident secretary for the first year.
As stand-alone market items, a registered office runs from roughly €250 per year and secretarial service from a similar low-end figure, though provider packages commonly price the secretary higher. All such administration fees are quoted exclusive of 19% VAT.
If you want a nominee director for substance or privacy, expect roughly €400 per year for a corporate nominee and up to €1,000 for an individual, with a nominee shareholder around €300 per year. These are optional and not required to incorporate.
Share Capital and Stamp Duty Considerations on Incorporation
There is no minimum share capital for a Cyprus Ltd. Firms are typically formed with a nominal €1,000, which need not be paid up, and the 0.6% capital duty on authorised share capital was abolished from 2019.
Government stamp duty on incorporation documents has also gone. Following the repeal of the Stamp Duties Laws by Law No. 239(I)/2025, the DRCIP confirms that documents submitted to it do not require stamp duty as of 1 January 2026.
One charge survives this repeal and catches some foreign owners by surprise. The HE1 is a sworn declaration that a licensed lawyer signs before a court clerk, and it still requires a Cyprus Bar Association stamp.
That stamp is paid to the Bar Association rather than the government, which is why the statutory repeal did not touch it. The fee scales with share capital; for the standard €1,000, it is €49.
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Professional and Formation Fees: What You Pay to Get Set Up
This is where most of your budget goes. A basic formation through a service provider generally costs between €1,500 and €4,000, covering government filing fees, document preparation by a licensed lawyer, and registration with the Tax Department. Legal and professional fees for drafting the company documents typically start around €1,200 and rise with complexity and provider tier, with 19% VAT on most service fees.
A standard package usually covers name approval, drafting the Memorandum and Articles of Association, filing with the DRCIP, obtaining the incorporation and director certificates, and the first UBO filing. Some providers also fold in the first-year registered office, VAT registration, or banking assistance; others price these separately, so compare scope rather than headline price.
Several post-incorporation steps carry their own costs or deadlines:
- Tax Department registration within 60 days of incorporation to obtain a Tax Identification Code (TIC)
- VAT registration where annual taxable turnover exceeds €15,600, or immediately for intra-EU trade, at the standard 19% rate
- Registration of Ultimate Beneficial Owners with the Cyprus UBO Registry
- A certified English translation of the Memorandum and Articles, which are produced in Greek, payable separately to the Registrar
Common one-off extras at formation include an AML and compliance check from around €200, apostille or legalisation from about €150 per set for documents used abroad, courier costs from roughly €50, and bank account introduction assistance from €300 to €500.
The Annual Levy and Other First-Year Government Charges
The €350 annual company levy no longer exists. The Companies (Amendment) Law 2024, N.25(I)/2024, published in the Official Gazette on 15 March 2024, repealed it from 2024 onwards, and the abolition followed the President's announcement on 21 February 2024 and the House of Representatives' endorsement on 29 February 2024.
Companies that had already paid the 2024 levy received refunds. Arrears for the years 2011 to 2023 remain payable with penalties, but this affects only existing companies with outstanding balances, not a new incorporation.
The recurring government charge that remains is the Annual Return. Form HE32 must be filed within 28 days of the AGM, and the filing fee is €20. Tax Department registration for a TIC and basic VAT registration carry no separate mandatory government fee, though your provider will charge for handling VAT returns, often from around €200 per quarter.
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What Makes the Total Vary and a Realistic All-In First-Year Figure
Your final cost depends on a handful of choices. Whether you use expedited registry processing, how many certificates you need, whether you require an English translation of the constitution, whether you engage nominees, whether VAT registration applies, and above all your company's activity level all move the figure.
Government out-of-pocket expenses for the registry filings, the Bar stamp, and statutory certificates typically total in the low hundreds of euros. Professional fees do the heavy lifting, ranging from roughly €1,200 to €3,000 for drafting, filing, and basic compliance advice through a service provider, and higher through a law firm.
| Cost layer | Approximate range |
|---|---|
| Government and registry fees | €500–€700 |
| Cyprus Bar Association stamp (HE1, €1,000 capital) | €49 |
| Professional formation fees | €1,200–€3,000 |
| First-year registered office and secretary | often bundled |
| Annual accounting and audit/review | €500–€3,000+ |
A formation quote of €1,500 rarely tells the whole story. Once a bank account, VAT registration, first-round compliance, and initial maintenance are added, real Year 1 spend typically lands between €3,000 and €4,500, and a fuller estimate including the first cycle of accounting, registered office, and secretarial fees runs €5,000 to €8,000.
Audit cost is the variable that swings widest. Every company must prepare annual financial statements, with audit from around €500 for a small holding company and €2,000 to €3,000 or more for an active trading business. From February 2026, the small-company audit exemption threshold rose to €300,000 turnover, with total assets below €500,000 for two consecutive years, letting eligible companies substitute a review engagement for a full audit and saving €600 to €2,000 a year.
Conclusion
Forming a Cyprus company is relatively inexpensive at the government level, with statutory fees in the hundreds of euros and two old charges, stamp duty and the annual levy, now gone. Most of your budget is professional fees and the cost of ongoing items such as accounting, audit or review, and a registered office. For a foreign owner, the practical figure to plan around is a Year 1 total in the low thousands once compliance and maintenance are included, not the formation quote alone. Because some published fees lag behind reform, confirm the current registry charge and your provider's scope before committing.
How Expanship Can Help Your Business in Cyprus
Expanship handles Cyprus company formation end to end through licensed local lawyers, so the HE1, the Memorandum and Articles, and the registry filing are managed for you as a non-resident, and the same engagement extends to the wider setup and upkeep a foreign-owned entity needs.
- Incorporation of your Cyprus Private Company Limited by Shares
- Registered office address and resident company secretary
- Tax Department and VAT registration, plus ongoing filings
- Annual return, UBO declarations, and compliance management
- Accounting, bookkeeping, and coordination of audit or review
- Introductions to banking partners for account opening
To discuss your structure and a clear cost estimate, contact Expanship Cyprus.
Frequently Asked Questions
The base registration fee for the standard set of forms is €165 with €1,000 authorised share capital, plus €10 for standard name reservation. Adding accelerated processing brings registration to €265, and certified copies of certificates cost a further €120 if you need them.
No. Government stamp duty on documents filed with the registry was repealed effective 1 January 2026, and the €350 annual company levy was abolished from 2024. A separate €49 Cyprus Bar Association stamp on the HE1 still applies, because it is a professional body fee rather than a tax.
Once you include the bank account, VAT registration, first-round compliance, and initial maintenance, Year 1 typically costs €3,000 to €4,500, even where the formation quote alone was around €1,500. A fuller estimate covering the first cycle of accounting, registered office, and secretarial fees runs €5,000 to €8,000.
There is no minimum share capital for a Cyprus Ltd, and the common €1,000 nominal figure need not be paid up. The 0.6% capital duty on authorised share capital was abolished from 2019, so a higher nominal capital no longer attracts that government charge.
Cyprus law requires that the incorporation documents be prepared and signed by a lawyer licensed by the Cyprus Bar Association, so a non-resident owner cannot file directly with the registry. This is why every foreign formation runs through a corporate service provider or law firm that uses licensed lawyers.
All companies prepare annual financial statements, with audit fees from around €500 for a small holding company up to €2,000 to €3,000 or more for active trading. From February 2026, companies below €300,000 turnover, with total assets under €500,000 for two consecutive years, may use a review engagement instead of a full audit, saving €600 to €2,000 a year.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
