Minimum Budget for Starting a Business in Cyprus

Starting a business in an EU jurisdiction always involves financial and legal nuances. Cyprus is one of the most accessible options, especially for entrepreneurs focused on international transactions, IT, fintech, and trade. Even in this favorable country, it is essential to plan ahead and understand the budget required to start a business in Cyprus, taking into account all mandatory and recommended expenses.

Registration Costs: What Determines the Price

Registering a company in Cyprus involves several stages, each with its own costs. Basic expenses include:

• Turnkey company registration: starts from €1,000. This includes submitting the company name for approval, preparing the incorporation documents, completing the registration process, and paying the government fee to the Department of Registrar of Companies.
• Opening a corporate bank account in a Cypriot or foreign bank: from €1,200 (excluding deposit requirements).
• Legal and administrative services: cost depends on the chosen service package.
• Minimum total cost for a standard company structure: around €2,000–2,500, excluding additional licenses or complex ownership schemes.

Share Capital: Mandatory or Nominal?

For a Private Limited Company (Ltd), there is currently no legally required minimum share capital. The standard amount is usually stated as €1,000, but it does not need to be deposited in a bank account. This is convenient for startups, as it allows optimizing the budget without freezing funds.

If cooperation with EU banks or participation in international tenders is planned, lawyers may recommend increasing the share capital to €5,000–10,000.

Additional Expenses: Office, Accounting, and Substance Requirements

After registration, the company must comply with substance requirements, especially if it intends to obtain tax residency:

• Company address and mail handling: from €300 per year.
• Nominee directors and shareholders (if needed): from €1,000 per year.
• Accounting and auditing services: from €600 per year.
• Maintaining substance (office, staff, communications): from €2,000 per year.

The simpler the company structure, the lower the mandatory expenses. However, even at a minimum, it is recommended to allocate at least €2,000 annually for ongoing support.

How to Optimize Expenses: Legal Advice

Experts in company registration in Cyprus recommend a flexible approach to planning expenses. There are several strategies to reduce the budget without compromising reliability:

• Use real data for founders and directors instead of nominees.
• Rent a virtual office at the initial stage instead of a physical premises.
• Outsource accounting rather than hiring an in-house employee.
• Combine services: many consultants offer discounted service packages.

The key is not to cut corners on mandatory legal steps: mistakes during registration, incomplete documents, or lack of substance can lead to bank account refusals or tax risks.

Professional legal services at the startup stage help avoid unforeseen costs and accelerate the company’s market entry. In 2025, this is especially important due to increased EU scrutiny on corporate transparency.