If you plan to open a representative/liaison office in Cyprus, you must know that you cannot use it to undertake any commercial activities. You can rely on our local specialists for support with its registration and conversion, if you decide to carry out economic activities.
| Quick Facts | |
|---|---|
| Applicable legislation | Cyprus Company Law |
Status | The representative office is not a corporate form. |
Uses of a liaison office | – marketing; – contact point for the parent company; – research. |
| Restrictions of a representative office (if any) | A Cypriot representative office cannot engage in commercial activities. |
| Minimum share capital (YES/NO) | There are no share capital requirements for such an entity. |
| Local representative required (YES/NO) | Yes, a local representative must be appointed. |
| Documents to be filed by parent company | – information about the foreign business; – proof of local address; – information about the local officers. |
| Local address requirement (YES/NO) | Yes, a local address is a main requirement for a liaison office in Cyprus. |
| Authority to be enrolled with | Trade Registrar |
| Liability of the parent company | The parent company is responsible for its representative office in Cyprus. |
| Taxation of a Cypriot liaison office | No taxes apply to this type of entity. |
| Possibility of hiring local staff (YES/NO) | Yes, a liaison office can have a few employees. |
| Travel requirements for setting up a representative office (YES/NO) | No, there are no requirements to travel to Cyprus. |
| Advantages of a liaison office | – simple to set up; – useful tool to test the market; – low maintenance requirements. |
| Support in opening a representative office | Yes, our local specialists can help you set up a representative office in Cyprus. |
Table of Contents
Who can establish a liaison office in Cyprus?
The representative office is available for foreign companies, EU and non-EU, seeking to test the Cypriot market before setting up a branch office or a subsidiary.
What should I know before opening a liaison office in Cyprus?
First of all, a Cypriot representative office lacks its own legal personality, which means that:
- it is not distinguished from the parent company;
- it has no unique name or trade name;
- it has no property of its own;
- the parent firm will be responsible for the office’s debts.
An important aspect to consider about the liaison office is that it cannot function for an indefinite period of time, which is why foreign investors who want to operate here can later decide to buy a shelf company in Cyprus to use for their activities.
What are the activities a foreign company can undertake through a representative office in Cyprus?
Any of the following:
- acting as a contact point between the parent company and Cypriot partners and/or clients;
- participating in events and fairs to promote the parent company;
- completing marketing activities.
No matter the form you want to use to set up a company in Cyprus, you can rely on our local agents for support. We also invite you to read about the liaison office in the infographic below:
What are the steps to open a representative office in Cyprus?
The same as when opening a company in Cyprus for commercial purposes, namely drafting a set of documents and submitting them to the Trade Register.
The procedure for establishing a liaison office is as follows:
- locating suitable office space for the office;
- appointing a local representative;
- enroll workers in social security benefits (the representative(s) are primarily subject to this requirement).
Compared to starting a company in Cyprus, the process of opening a representative office is substantially more straightforward.
What documents must a foreign company supply to set up a liaison office in Cyprus?
The following:
- a certified copy of the parent company’s Registration Certificate;
- a certified copy of the parent company’s statutory documents;
- the most recent financial statements of the parent company;
- proof of funds for supporting the activities of the liaison office;
- a description of the activities of the Cypriot representative office.
Is tax registration required when opening a liaison office in Cyprus?
Yes. Even if it does not make profits, the parent company must submit annual financial accounts with the Cyprus Tax Department.
Is it necessary for a liaison office to have a bank account in Cyprus?
Yes, the parent company must open a Cypriot bank account for its representative office.
Can a Cypriot office hire employees?
Yes, it can.
Can a Cypriot representative office enter into contracts on behalf of the parent company?
No, it cannot.
How long does it take to open a representative office in Cyprus?
The procedure takes 2 to 3 weeks.
We have also created a video on this subject:
Is a Cypriot representative office subject to taxation?
The parent company should be aware that establishing a liaison office in Cyprus means that it is not subject to income tax as long as it doesn’t close any sales and doesn’t directly serve its clients. However, it must register for taxation purposes.
However, the Companies Register must receive an annual filing of the overseas company’s financial accounts from a local agent or liaison office.
If you require accounting assistance, you may also rely on our accountant in Cyprus.
For any matters concerning company formation in Cyprus, please contact our team of company registration representatives.