Setting up a company in Cyprus is a strategic move, whether for tax optimization, expanding into European markets, or benefiting from its business-friendly regulatory framework. But company formation is just the first step, what follows is equally critical to ensuring your business remains compliant.

At AGPLAW, we specialize in providing comprehensive legal, corporate, and regulatory services to support businesses at every stage. From setting up a Cyprus company to managing its compliance, tax obligations, and operational needs, our teams ensure a smooth transition from incorporation to full-scale business operations.

So, what comes next after forming a Cyprus company? Here is a quick guide to help you understand the next steps.

1. Opening a Business Bank Account

A corporate bank account is obviously the first step ahead. However, opening a bank account in Cyprus involves compliance with strict anti-money laundering (AML) and Know Your Customer (KYC) regulations.

At AGPLAW, with cooperation with over 50 banks all over the globe, we assist clients in:

• Choosing the right bank based on their business needs.
• Preparing and submitting the necessary documentation.
• Facilitating remote account opening when possible.

Many international and local banks operate in Cyprus, such as Bank of Cyprus, Hellenic Bank, and Eurobank, as well as fintech solutions for international transactions. Our banking services team ensures a smooth and compliant banking setup for your company.

2. Tax Registration and VAT Compliance

Once incorporated, your company must register with the Cyprus Tax Department. Depending on the nature of your business, VAT registration may also be required.

• Corporate Tax: Cyprus has a 12.5% corporate tax rate, the lowest in the EU.
• VAT Registration: If your company’s annual turnover exceeds €15,600, VAT registration is mandatory (19% standard rate).
• Employer Registration: If hiring employees, your company must register as an employer with the Social Insurance Department.

How AGPLAW helps:

• Assisting with tax and VAT registration.
• Advising on tax-efficient structures and compliance.
• Providing ongoing tax consultancy and reporting.

3. Accounting and Financial Compliance

Cyprus companies must maintain proper accounting records and submit annual financial statements audited by a licensed auditor. Non-compliance can lead to fines or legal consequences.

• Annual Audits: Required for all Cyprus companies.
• Financial Reporting: Adherence to International Financial Reporting Standards (IFRS).
• Tax Filings: Annual corporate tax returns and VAT filings, where applicable.

Our Accounting and Audit Advisory services at AGPLAW:

• Full accounting and bookkeeping services.
• Audit coordination with licensed auditors.
• Timely preparation and filing of tax returns.

Our accounting team ensures your company meets all regulatory obligations while optimizing tax efficiency.

4. Setting Up a Physical or Virtual Office

A Cyprus company must have a registered office address in the country. However, in addition to that, many businesses opt for virtual offices as well, to maintain a professional presence in Cyprus.

Options we provide:

• Registered office address and mail handling.
• Virtual office solutions with call answering and reception support.
• Assistance in leasing or purchasing office space, if needed.

If your company requires a physical presence in Cyprus, we also assist in office setup, recruitment, and administrative support.

5. Hiring Employees and Payroll Management

If your business requires staff, you must comply with Cyprus labor laws, including employment contracts, payroll management, and social security contributions.
Key obligations include:

• Registering employees with Social Insurance.
• Drafting employment contracts compliant with Cyprus labor law.
• Managing payroll, taxes, and employee benefits.

AGPLAW’s HR and Payroll Services:

• Employee registration and contracts.
• Payroll processing and social security compliance.
• HR advisory for employment best practices.

Whether hiring locally or relocating employees, we provide full HR and payroll management services.

6. Ongoing Corporate Compliance and Secretarial Services

Cyprus companies must meet several ongoing corporate obligations, such as:

• Filing Annual Returns (HE32) with the Registrar of Companies.
• Maintaining updated company records.
• Holding Annual General Meetings (AGMs).

Non-compliance can lead to fines or even company dissolution.

AGPLAW’s Corporate Services include:

• Serving as your Company Secretary.
• Preparing and filing all statutory documents.
• On-going daily corporate governance support./li>
• Handling changes in directorship, shareholding, and corporate structure.

We ensure your company remains fully compliant with Cyprus regulations, avoiding penalties or legal issues.

7. Intellectual Property (IP) and Trademark Protection

If your business involves intellectual property, Cyprus offers one of the most attractive IP tax regimes in Europe. The IP Box Regime allows for an 80% tax exemption on qualifying IP income, reducing the effective tax rate to as low as 2.5%.

AGPLAW’s IP Services include:

• IP registration and trademark protection.
• Structuring IP assets for tax efficiency.
• Ongoing legal support for IP rights enforcement./li>

Protecting your brand, innovations, and digital assets is crucial for long-term success.

8. Business Growth and Expansion Support

Once your Cyprus company is operational, AGPLAW can support your expansion strategies, including:

• Mergers and Acquisitions.
• Cross-border transactions and EU market entry.
• Holding Annual General Meetings (AGMs).

As a full-service legal and corporate advisory firm, we provide tailored solutions for business growth in Cyprus and internationally.

Why choose AGPLAW?

At AGPLAW, we don’t just help you set up a company, we guide you every step of the way to ensure smooth operations, full compliance, and long-term success. Our comprehensive services include:

✅ Company Formation and Corporate Structuring

✅ Banking and Tax Advisory

✅ Accounting and Financial Compliance

✅ Legal and Regulatory Support

✅ Intellectual Property Protection

✅ HR, Payroll and Employment Services

✅ Business Expansion and Investment Structuring

Contact us today for a consultation.

The information provided in this document/article is for general informational purposes only and should not be considered legal or professional advice. While every effort has been made to ensure the accuracy and reliability of the information contained herein, the author, publisher, or any related parties make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the information. Any reliance you place on such information is therefore strictly at your own risk. In no event will the author, publisher, or any related parties be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this document/article. It is recommended to seek independent legal advice for any specific legal concerns or decisions.