An EU platform subsidiary
Cyprus Subsidiary of a Foreign Company
A Cyprus subsidiary sits inside the EU, with access to the directives a non-EU jurisdiction cannot offer.
GCC business setup specialists
Directive access is the structural advantage
For a group operating across Europe, a Cyprus subsidiary can rely on the EU directives governing distributions and reorganisations between member states — something a jurisdiction outside the Union, including the United Kingdom since its departure, cannot provide. Combined with the absence of withholding tax on distributions out of Cyprus, that makes it a genuine platform rather than a conduit, provided the substance is real.
- EU directive access assessed against your actual group
- Substance requirements set out before incorporation
- Distribution route to the parent planned from the start
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
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Why a Cyprus subsidiary
What it offers, and what it requires
Advantages come with conditions.
| Feature | Position |
|---|---|
| EU directive access | Available as a member state entity. |
| Withholding on distributions out | None to non-residents. |
| Dividends received | Generally exempt, subject to conditions. |
| Treaty network | Extensive, where residence is established. |
| Substance | Required, for tax, banking and anti-abuse tests. |
| Audit | Mandatory, with no size exemption. |
Directive access, exemptions and their conditions, and EU anti-abuse measures are set by law and change, and treatment also depends on the parent’s jurisdiction. Cyprus is a European Union member state, so EU directives, the single market and EU anti-avoidance measures all apply.
How it works
Setting up the subsidiary
Substance planned before incorporation.
01
Plan residence and substance
Board composition, where it will meet and what presence you will maintain, because the advantages depend on all three.
02
Incorporate
Name approved, memorandum and articles prepared, company incorporated with secretary and registered office.
03
Register and operate
Tax and VAT registrations, beneficial ownership filing, auditor appointment and the bank account pursued.
- Parent name, jurisdiction and ownership
- Ownership chain to beneficial owners
- Certified identity and address documents for controllers
- Documented source of funds
- Where the group operates in Europe
- How the parent expects to be paid
- Whether directive benefits are intended
- Whether treaty relief will be claimed
- Proposed directors and their residence
- What substance will be maintained here
- Expected revenue and activity
- Timeline
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Advice on residence and substance requirements
- Name approval and incorporation
- Memorandum and articles
- Company secretary and registered office
- Due diligence co-ordination
- Tax, VAT and beneficial ownership registrations
- Auditor appointment co-ordination
- Guidance on distributions to the parent
Not included, quoted separately
- Registry fees, paid at cost
- Audit fees
- Tax advice in the parent’s jurisdiction
- Formal opinions on directive or treaty access
- Resident director services unless quoted
- Substance costs such as office and staff
- Transfer pricing studies
- Bank account opening decisions
Verify independently
Official Cypriot authorities
We file directly with these bodies on your behalf.
Central Bank of CyprusDepartment of Registrar of Companies and Intellectual PropertyTax DepartmentCyprus Securities and Exchange CommissionCommercial banks and their compliance functionsBeneficial ownership register
Questions
Cyprus subsidiary — FAQs
What do the EU directives give me?
Access to the regimes governing distributions and reorganisations between member states, which a non-EU entity cannot use. For a European group that is the main structural reason to choose Cyprus.
Is there withholding when I pay profits to my parent?
Cyprus imposes no withholding on dividends to non-residents, which is a genuine advantage and does not depend on a treaty.
How much substance do I actually need?
Enough that the company is genuinely managed here and can satisfy anti-abuse tests and a bank. We set out what that means in practice rather than minimising it.
Does the parent’s jurisdiction matter?
Yes, considerably, for how distributions are treated at the other end. That needs advice in the parent’s country, which we co-ordinate.
Will the subsidiary be audited?
Yes. Cyprus has no small company audit exemption, so audit is an annual certainty and should be budgeted.
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