Minimum Capital Requirements for Setting Up a Business in Cyprus

Cyprus has earned its reputation as one of the most attractive destinations for setting up a business, thanks to its strategic location, robust economy, and favourable tax regime. One of the key considerations for entrepreneurs and investors is the capital required to start a business in Cyprus.

Here’s a comprehensive guide to help you navigate the requirements and choose the right business structure.

No Capital Requirement for Private Limited Companies

One of the standout benefits of setting up a business in Cyprus is the minimal financial barrier to entry. For a Private Limited Liability Company (Ltd)—the most popular business structure for small and medium-sized enterprises (SMEs)—no minimum share capital is legally required. This makes it an ideal choice for entrepreneurs seeking a low-cost entry point into the European market.

Capital Requirements for Public Limited Companies and Other Entities

While private companies there is no minimum share capital requirements, other types of

business entities in Cyprus have specific capital thresholds:

• Public Limited Liability Company (PLC): Requires a minimum share capital of

approximately €25,630, making it suitable for larger enterprises planning to raise

funds through public offerings.

• Start-Up Share Capital in Practice: Although there is no legal requirement for private

companies, many businesses opt for an initial share capital of around €2,000 to cover

operational needs and demonstrate financial stability.

Cyprus does not impose complicate capitalization rules. This means that the share capital

does not need to reflect or be proportional to the company’s assets, providing businesses

with added flexibility in structuring their finances.

Types of Business Entities in Cyprus

Cyprus offers a range of business structures, each catering to different operational needs

and goals. Below is an overview of the available options:

1. Private Limited Company (Ltd)

   1. No minimum share capital required.

   2. Ideal for SMEs and foreign entrepreneurs starting a business in Cyprus.

2. Public Limited Company (PLC)

   1. Minimum share capital of €25,630.

   2. Suitable for businesses intending to raise capital through public investments.

3. General Partnership

   1. No specific capital requirement.

   2. Partners share equal responsibility for profits, losses, and liabilities.

4. Limited Partnership

   1. No capital requirement for partners, but liability differs between general and limited partners.

5. Branch of a Foreign Company

   1. No minimum share capital required.

   2. Operates as an extension of the parent company.

6. Sole Proprietorship

   1. No capital requirement.

   2. Simple structure for individual entrepreneurs who assume full liability.

7. Societas Europaea (SE)

   1. European public company with minimum capital requirements that vary by

      operational scope and jurisdiction.

8. Foreign Interest Company

   1. Capital requirements depend on the parent company’s contributions and

      operational goals.

   
   

The absence of strict capital requirements, particularly for private companies, makes Cyprus a business-friendly jurisdiction. When combined with its 12.5% corporate tax rate—one of the lowest in the EU—and its strategic location bridging Europe, Asia, and Africa, Cyprus is a prime destination for businesses seeking growth opportunities.

Simplify the Process with Expert Guidance

Navigating the legal and financial aspects of setting up a business in Cyprus can seem daunting, especially for foreign entrepreneurs. Our team of experts specializes in guiding individuals and businesses through the process, ensuring compliance while minimizing hassle will assist by individually approaching and reviewing each situation on a ‘case by case’ basis. We’ll help you to establish your business in Cyprus with ease and confidence while implementing and complying all legal requirements.