Types of Companies in Cyprus

Choose the Right Cyprus Entity for your situation.

Maximize your ROI with the EU’s most efficient business structures, now updated with the 15% Corporate Tax and €22,000 personal tax-free bands and, 10-Day incorporation time and 0% Dividend Tax for Non-Doms

Types of Cyprus Companies: Quick-Selection Guide

Entity Type	Best For…	2026 Key Advantage
Private Limited (LTD)	Most SMEs & Tech Startups	15% Flat Tax + Asset Protection (most-chosen)
Holding Company	Asset & Subsidiary Management	0% Tax on Dividends & CGT
Public Limited (PLC)	Large Capital Raising	Access to Stock Exchange Listing
Partnership	Professional Services	Flow-through Taxation
Sole Trader	Small Local Freelancers	€22,000 Tax-Free Threshold

Types of companies in Cyprus

Choosing your legal structure is the most critical decision in your Cyprus journey. Under Cyprus Companies Law, and the 2026 Tax Reform, here is the technical breakdown:

1. Private Limited Liability Company (LTD)

The Cyprus Ltd. is the “gold standard” for international business. In 2026, it offers the perfect balance of global credibility and tax optimization.

Liability: Limited to the share capital.
Corporate Tax: Fixed at 15% on net profits.
Management: Requires minimum 1 Director and 1 Secretary.
Compliance: Mandatory annual audit. The 2026 reform has introduced automatic €200/day fines for late UBO Registry updates—our service includes automatic sync to prevent this.

2. Cyprus Holding Company

For 2026, the Holding Company remains the EU’s premier vehicle for dividend pooling.

0% Dividend Tax: Incoming dividends from foreign subsidiaries are generally exempt.
0% Capital Gains Tax: Selling shares in subsidiaries triggers zero tax.
No Deemed Distribution: The 2026 reform has permanently abolished the deemed dividend distribution for future profits, giving you total cash-flow control.

3. Public Limited Company (PLC)

Designed for large-scale operations requiring more than 50 shareholders.

Minimum Capital: €25,629.
Compliance: Subject to stricter reporting and transparency rules than a Private LTD.

Self-Employed vs. Company: The Verdict

With the new €22,000 tax-free limit, the math for freelancers and solo-founders has shifted.

Feature	Self-Employed (2026)	Cyprus LTD (2026)
Personal Tax-Free	First €22,000 (0% Tax)	First €22,000 (Salary)
Tax on Profits	Progressive (20% to 35%)	15% Flat Rate
Social Insurance	~16.6% on estimated income	~8.8% on salary
Asset Protection	None (Unlimited Liability)	Full (Limited Liability)
Audit Obligation	Only if Revenue >€120,000	Mandatory for all companies

The Strategy: If your net profit exceeds €45,000, the flat 15% corporate tax combined with the Non-Dom dividend exemption (0%) is mathematically superior to the progressive individual tax bands.

Why Partner with us for your Cyprus Company Formation?

End-to-End Service: We don’t just register companies; we provide the Management & Control (Substance) needed to pass 2026 banking audits.
Urgency & Precision: We handle the Registrar of Companies (RoC) and the Tax Department filings simultaneously, reducing setup time by 40%.

Frequently Asked Questions about Company Types in Cyprus

Which company type is best in Cyprus?

For most international business owners and tech startups, the Private Limited Liability Company (LTD) is the best choice. It provides full protection of personal assets and allows you to utilize the 15% corporate tax rate while enjoying 0% dividend tax if you hold Non-Dom status.

What is the difference between self-employed and a company in Cyprus?

The main difference is legal personality and taxation. A self-employed person is taxed as an individual (progressive rates up to 35%) and has unlimited personal liability. A company is a separate legal person taxed at 15% and protects the owner’s personal assets from business debts.

Is there a minimum capital requirement for an LTD?

Legally, there is no minimum paid-up capital requirement for a private company. Most people set it at €1,000 to cover initial administrative costs.

What is the best company type for a Digital Nomad in 2026?

For most, a Private Limited Company (LTD) combined with the 60-Day Tax Residency Rule is the best setup. It protects your personal assets while allowing you to pay yourself a tax-free salary up to €22,000.

Can I switch from Self-Employed to an LTD later?

Yes. We specialize in “In-Kind” transfers where your existing business assets are moved into a new LTD structure to optimize for the 15% tax rate.