Setting up a Representative Office in Cyprus
A Foreign Company can also establish a presence in Cyprus via a Representative Office, which can perform various activities on behalf of the parent company but is not permitted to engage in any commercial activities or generate any income. They are often set up by foreign companies to test the market before establishing a Cypriot Branch Office or incorporating a subsidiary.
A Representative Office is not considered a separate legal entity. It is permitted to hire employees but it cannot sign or enter into contracts and is not subject to the same legal and regulatory requirements as a local company.
The main purpose of a Representative Office is to facilitate the parent company’s market research, conduct marketing and brand promotion, liaise with local partners or government agencies, and to undertake supervision of suppliers or distributors
It allows foreign companies to explore business opportunities, build local relationships, and conduct non-transactional operations — all while maintaining legal and brand presence in a foreign country.
Setting up a Representative Office in Cyprus
To establish a Representative Office in Cyprus, a Foreign Company is required to obtain approval from the Ministry of Energy, Commerce & Industry (MECI) prior to establishment. It is a required to submit the following documents:
- A certified copy of the foreign parent company’s Certificate of Incorporation.
- A certified copy of the parent company’s memorandum and articles of association.
- Particulars of the parent company’s directors and secretary.
- Financial statements of the parent company
- Proof of funds of the parent company.
- A detailed description of the activities the Representative Office will conduct in Cyprus.
A Cyprus Representative Office is further required to register with the Cyprus Tax Department. However, it will not generate any income so it should not incur any actual tax obligations.
Filing obligations for a Representative Office in Cyprus
A Cypriot Representative Office is required to submit the annual financial accounts of the Foreign Company to the Registrar of Companies. This submission must be accompanied by a certified translation into Greek to ensure compliance with local regulations.
Filing exemptions apply for Representative Offices of foreign companies from European Union member states. To gain exemption the EU Foreign Company must submit a formal certificate signed by both a director and the company secretary, together with a statement from the relevant authority of the company confirming this exemption.
Key Benefits of a Representative Office
If you’re looking to establish a presence in a new market without engaging in commercial activity, a Representative Office can offer the following key benefits:
- Low operational costs – no corporate tax or local VAT obligations.
- Simple legal structure – fewer licensing and compliance steps.
- Local market insight – gain access to cultural and business environments.
- Brand recognition – build a visible presence without commercial risk
- Strategic flexibility – straightforward conversion into a Branch or a subsidiary LLC later.
Sovereign Services
Sovereign Cyprus can assist in all aspects of establishing a Representative Office in Cyprus. Once MECI approval for your Representative Office has been received, will can also assist with :
- Employee visas (if applicable)
- Office lease set-up assistance
- Corporate bank account support – we can assist in preparing documents and managing communication with selected banks.
Explore Cyprus
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
