Most common business entity in Cyprus
The Private Limited Company is the standard choice for most small- to mid-size businesses in Cyprus. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Annual levy €350 due to Registrar. Audit mandatory.
The full menu of Cyprus business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Private Limited Company | Limited | 12.5% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 12.5% on Cyprus-source profits | Foreign companies entering Cyprus market |
| Public limited company | Limited | Same as Private Limited Company but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Cyprus? Self-employed structure if simple, Private Limited Company if you want liability protection.
- Software / e-commerce / agency? Private Limited Company — standard, scalable.
- Operating an existing foreign company in Cyprus? Branch (simpler) or subsidiary Private Limited Company (more substance).
- Planning to raise venture capital? Confirm investors accept Cyprus entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Private Limited Company with minimal substance requirements.
The Private Limited Company in one paragraph
Private Limited Company is Cyprus's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 12.5%. 12.5% trading. IP Box → 2.5% effective on qualifying IP. 0% on dividends/capital gains (with conditions).. Banking accessibility: 7/10. Privacy: 4/10 (UBO public). Remote formation: yes. Processing time: 7 business days.
For US comparison, see Cyprus vs USA. For non-resident formation specifics, see forming a Cyprus company as a non-resident.