Create a Foundation in Cyprus

Foreign entrepreneurs looking to set up a foundation in Cyprus have to get familiar with the specific legislation for this type of organization in the country. Foundations in the island are regulated by the Societies and Institutions Law of 2017 (Law 104(I)/2017).

In this article, our lawyers in Cyprus explain a few aspects related to creating a Cypriot foundation.

Requirements for setting up a foundation in Cyprus

Under the legal definition of the Foundation, its assets have to be entirely dedicated to a certain purpose. The local legislation requires at least one member, and there is no minimum amount of funds to be gathered in order to create such an organization.

All foundations in Cyprus are registered with the Ministry of Interior. Our attorneys in Cyprus can assist you if you wish to create such an organization in this country. 

The application to this ministry in order to create a foundation in Cyprus has to include:

• a founding act;
• the addresses and names of the administration members;
• the foundation name;
• the headquarters address of the organization;
• the foundation emblem, if applicable;
• other documents. We can provide you with more information on what these documents consist of.

Conditions to fulfil in order to establish a Cypriot foundation

Just like Cypriot companies, the settlors of a foundation must also meet specific conditions before registering it. Here are the main requirements in this sense:

• the Memorandum and Articles of Association of the foundation must specify the non-profit character of the entity;
• the value of the assets held by the foundation must be at least EUR 1,000;
• the foundation must have a Board of Directors or a Board of Commissioners who are appointed by the founders;
• the Board must have at least 3 members.

The registration is done with the Register of Foundations kept by the Registrar of Societies and Institutions, falling under the supervision of the Ministry of Interior and can take up to 3 months. Please note that now, foundations are also required to register beneficial owners with the Register of Beneficial Owners.

Our Cypriot lawyers can offer detailed information on the new Register.

Main ways to establish a foundation in Cyprus

There are several ways to create a foundation in Cyprus. Some of the most popular are:

• by registering a charitable foundation as a non-profit organization;
• by incorporating a company limited by guarantee, which has the advantage of enabling the foundation to operate at an international level;
• by setting up a trust, which can be used to administer donations and trust funds;
• by creating a public association where more people form it to complete charitable activities;
• by setting up a club, which must have at least 20 members.

Our law firm in Cyprus can assist with the establishment of a foundation in the form you want.

Registration of a foundation in Cyprus

According to the above-mentioned law, a foundation is established after registering its incorporation act with the Registrar in the Register of Institutions.

The Registrar, if the object of the foundation is legal, will start the registration procedure in the Registrar and issue a certificate of registration.

The issued certificate will be published in the official Gazette of Cyprus and constitutes the official proof of the registration date and of compliance with the legal criteria.

After the certificate has been issued, the foundation will be incorporated. Our lawyers in Cyprus can provide further information on the following registration procedures for foundations here.

Activities foundations in Cyprus can undertake

Given their not-for-profit purpose, Cypriot foundations can complete the following activities:

• healthcare development projects;
• offering assistance to low income communities;
• education and science support and promotion;
• human rights and social justice actions;
• cultural and artistic promotion.

Other activities are also allowed as long as the members do not draw profit from them. Our lawyers in Cyprus can offer detailed information on the activities a foundation can complete.

If you decide on a company instead of a foundation, our lawyers can help you buy a shelf company in Cyprus.

How many foundations operate in Cyprus?

The latest data obtained from the Ministry of Interior shows that at the level of 2024, there were more than 500 charities registered in Cyprus. Their activities were as follows:

• the largest portion of 35% in education and science;
• 25% of the foundations worked in healthcare;
• 20% provided social assistance;
• 15% promoted ecological actions;
• 5% operated in the arts and culture sector.

If you would like to open a foundation in Cyprus or set up any type of legal entity on the island, we kindly invite you to get in touch with our Cypriot law firm.