Whether you’re a small business owner or a large corporation, the same administrative procedures must be followed after your company is registered to stay compliant with Cypriot Regulations. And even then, there are several requirements which as a company, you have to keep up with every year for as long as you’re in business.

You’ve just hired a lawyer to register your company, the Registrar of Companies approves your application and issues a Company Registration Number along with your Company Certificates. You might think you’re ready to start doing business, but there’s more to do.

All these requirements and procedures can be overwhelming to most people, and even more so to a young entrepreneur starting their first business and encountering Cypriot bureaucracy for the first time.

More often than not, business owners choose to appoint their accountant or lawyer to handle all the administrative requirements. But, if you’re a small business owner, there’s nothing wrong with doing everything yourself to avoid unnecessary costs. Even if you still choose to appoint someone else to do it for you, it’s still important to understand exactly what must be done after your company has been registered. This article aims to explain in simple terms what you need to do after registering your company in Cyprus.

The first thing to do after your company has been incorporated is to register with the Tax Department to obtain a Tax Identification Number (TIN). Tax registration is mandatory for all businesses and you must do so within 60 days from the date of your company's registration.

You can register for a TIN online through the Tax Department's website, known as the Tax For All (TFA) Taxpayer Portal. There, you'll need to submit certain information about yourself and your company, along with your company’s certificates. Once you've submitted everything, you just need to wait for the Tax Authorities to email you your company's Tax Identification Number (TIN).

You can find a detailed guide on how to register for a TIN here.

After you have registered for your company’s TIN, you will be able to submit your company’s annual tax returns electronically through the TFA Taxpayer Portal before the end of the 31st of March each year.

Beyond that, your company has to pay provisional tax on each year’s taxable profit in two equal installments on the 31st of July and the 31st of December. Once again, payments are made through the TFA Taxpayer Portal.

Every company in Cyprus must register for Value Added Tax (VAT) and obtain a VAT number if their annual turnover exceeds €15,600 or if they expect to exceed this threshold within the next 30 days. To register, you’ll have to complete the relevant registration form (T.D. 1101) and submit it in person to your district’s Tax Department Office, along with proof that your company is conducting taxable transactions, such as an invoice or a contract.

Keep in mind that you cannot charge your clients VAT if you haven’t registered and obtained your VAT number.

If you wish to voluntarily register for VAT before reaching the required threshold and want to charge your clients VAT from the start, you can do the following: When your business makes its first sale, include VAT on the invoice, then immediately fill out the registration form, take the invoice to the Tax Department Office, and request to be registered for VAT from the date that you have issued the invoice.

In Cyprus, VAT is charged at the standard rate of 19% but there are exceptions with certain goods and services being charged at a lower or even a zero rate. You can read more about VAT rates here.

After you have obtained your VAT number, you will be required to submit your VAT returns online through the TFA Taxpayer Portal every quarter (three-month period) even if no transactions took place during that time.

The Ultimate Beneficial Owner Registry, commonly referred to as the UBO Registry, requires all companies registered in Cyprus to declare their beneficial owners to the Registrar of Companies within 90 days from the date of their incorporation.

A beneficial owner is an individual who owns or controls more than 25% of a company’s shares, or who exercises significant control over the company or its activities.

To declare your company’s Ultimate Beneficial Owners (UBOs) to the Registrar of Companies, you must first create a profile on the CY Login website (previously known as ARIADNE). After your profile is activated, you must then authenticate your profile by completing the Profile Identification process.

This involves filling out the relevant application form (CYL/1) if you plan to submit it yourself or the application form (CYL/2) if you want to authorize someone to submit it on your behalf.

Submitting your application needs to be done in person at a Citizens Service Center, after scheduling an appointment. Once your profile is activated, you can submit the necessary information about your company’s UBOs.

You can find more information on Profile Identification here.

If your company plans to employ individuals then you’re required to register with the Employers’ Register of the Social Insurance Services. To do that, you must first fill out the relevant application form (YKA 1-001) and submit it to any Social Insurance District Office or Citizen Service Centre to obtain your Employer Registration Number.

After you have obtained your Employer Registration Number you’ll be able to create an account in the ERGANI platform, through which you’re required to pay the relevant contributions to your employees and inform the Social Insurance Services of any new hires, employee termination, and other relevant information.

You can find an in-depth Empoyer’s Guide here.

Once your company finally starts operating, you should make sure that you keep detailed records of all business transactions such as receipts, invoices, and contracts. These records should be kept somewhere safe, ideally at the registered office of the company, and must be kept for at least six years after the end of the relevant calendar year.

The records of your company’s business transactions will then be used to prepare the financial statements of your company which should include a balance sheet, a profit and loss account, and notes.

You’ll have to prepare your company's first set of financial statements within 18 months from the date of incorporation. After that, financial statements should be prepared annually.

Cypriot Law requires that an independent registered auditor in Cyprus audits the financial statements of your company. However, if you’re a small business, you might be exempt from undergoing a statutory audit.

Specifically, if your company’s net turnover does not exceed €200,000 and the total value of its gross assets does not exceed €500,000, then you can opt for a review by an auditor instead of a full statutory audit, which can save you costs.

Every year, your company is required to hold an Annual General Meeting where decisions are taken concerning the company's direction. Among other things, the company’s financial statements are also presented during this meeting. It’s important to keep a written record of anything discussed during the Annual General Meeting including any written resolutions. All records should be kept at your company's registered office.

If you are the sole member of your company, you are not required to hold a formal meeting. However, you are still required to keep a record of decisions in the form of written resolutions.

Once again, the first Annual General Meeting of your company should take place within 18 months from the date of incorporation. This means you don’t need to worry about holding an Annual General Meeting during the first 18 months after starting your company.

After you’ve prepared the first financial statements of your company and held your first Annual General Meeting, the next step is to prepare and submit your company’s annual returns. The Annual Return, also known as form HE32, is used to confirm and update the Registrar of Companies with general information about your company and should be submitted along with your audited financial statements.

The submission of your company’s annual returns can only be made electronically through the e-filing system of the Registrar of Companies. To access the e-filing system of the Registrar of Companies, simply log in using the profile you created on the CY Login website. This is the same profile that was authenticated through the Profile Identification process earlier.

To be able to submit your company’s annual returns you must register your company with the e-filing system and obtain your company’s authorization code. The way this is done is by completing the Application for the registration of a registered organization in the e-filing of Documents and sending it to the following email address: efilingcodes@drcor.meci.gov.cy.

They will then send you the credentials to log in to the management page of your company’s profile to create your authorization code. This code isn't just for submitting your Annual Returns but also when you want to make any changes related to your company (change of Shareholders, Director, etc) electronically.

For many years, every company in Cyprus was obligated to pay the annual fee of €350 by the 30th of June of each year of operation to the Registrar of Companies. However, this fee was abolished in early 2024 so this is not something that you should worry about anymore.

Another important thing to have in mind before getting your company up and running is whether you need any permits or licenses from the government. This depends on what kind of business you’re starting. Some businesses need more licenses, while others need fewer.

For example, if you're starting a cafeteria, you’ll need to get a license to operate from the Deputy Ministry of Tourism. However, if you want to sell alcohol at your cafeteria as well, then. you’ll also need a relevant license from the Municipality where your business is located, or from the District Officer if it's outside municipal boundaries.

You can find more information on operating permits and licenses for businesses here.

The purpose of this guide is to help you understand the necessary post-incorporation administrative procedures and provide essential information for those who choose to undergo these procedures themselves. If you need further assistance with any of these steps, feel free to send us an email.