Open a Representative Office in Cyprus

Opening a representative office in Cyprus is the best and simplest way to test the market before expanding a foreign company. Discover below what the establishment of a liaison office entails.

Quick Facts
What is a representative office?	A representative office (also known as a liaison office) is a non-commercial office that is established by a foreign company to promote the business of its parent company.
Purpose	To facilitate the parent company’s marketing, advertising, research, and communication activities.
Legal status of a representative office in Cyprus	Non-legal entity
Approval	A representative office must obtain approval from the Ministry of Energy, Commerce, and Industry before establishment.
Submissions	Required documents include a copy of the parent company’s certificate of incorporation, financial statements, proof of funds, and a detailed description of the activities the liaison office will conduct in Cyprus.
Decision-making	Parent company
Activities	Limited: a liaison office can only engage in non-commercial activities such as marketing, advertising, research, promotion, and gathering market intelligence.
Audit	Not required, unless the representative office has a specific taxable income or other obligations in this matter.
Land acquisition	Representative offices are not legally permitted to acquire land.
Compliance required for a representative office (Yes/No)	Yes, representative offices must comply with Cypriot regulations including tax filings, company registration, and other local legal requirements.
Funding	From the parent company
Eligibility	Foreign companies: only foreign companies with an established presence abroad can open a representative office.
Additional representative office application	The application process for setting up a representative office requires submitting a detailed business plan to the Ministry of Energy, Commerce, and Industry for approval.
Contracts	A representative office cannot sign or enter into contracts.
Legal assistance	You can rely on our specialized agents in order to open a representative office in Cyprus.

What should I consider when setting up a Cypriot liaison office?

The representative office is not a distinct entity from the parent company; therefore, the latter will be liable for the obligations of the liaison office. Also, this entity cannot engage in commercial activities, which limits its operations on the Cypriot market.

As a general rule, the liaison office can start numerous operations which do not generate revenues; our team of Cypriot attorneys can offer more details on this matter.

NOTE: Approval from the Ministry of Energy, Commerce, and Industry is required BEFORE registering a liaison office in Cyprus.

What is the main role of a representative office in Cyprus?

The main purpose of a liaison office is to establish a business presence on the local market by gathering relevant information useful for the parent company, which can be set up in another country.

NOTE: A representative office in Cyprus is an entity entirely different from a Cypriot branch or subsidiary. And that is because it is not independent of the parent company, and it carries some important limitations, such as the fact that it cannot trade goods or offer services.

The video below presents more details on the representative office in Cyprus:

Where do I register a representative office in Cyprus and is it possible to do that remotely?

The liaison office will be incorporated with the Companies Registrar just like any other type of company in Cyprus.

The procedure can be completed remotely with the help of our lawyers in Cyprus, as you will need a local agent for this purpose.

What is the procedure to register a Cypriot liaison office?

The main steps of this procedure are:

Obtaining a special approval;
Register as a taxpayer;
Subscribe to all the relevant government agencies.

What are the documents for setting up a representative office in Cyprus?

The following:

the parent company’s Certificate of Registration in a certified copy;
the parent company’s Articles of Association in a certified copy;
details of the company’s directors;
the latest financial statements of the parent company;
proof of funds to sustain the activities of the liaison office;
a description of the activities to be undertaken by the representative office in Cyprus;
legalized letter of the representative office chief;
proof of payment of the registration fee.

What activities can a Cypriot liaison office complete?

Any of the following:

market research;
competition analysis;
promotion of the parent company’s activities;
acting as a contact point between local partners and clients;
participating in fairs, exhibitions, etc.

Please read more on this topic in the infographic below:

Are there any accounting requirements applicable to liaison offices in Cyprus?

Even if the representative office itself is not subject to taxation, it needs to register with the Tax Department.

A representative office situated in Cyprus is mandated to submit the annual financial accounts of the foreign company to the Registrar of Companies. This submission must accompany a certified translation into Greek to ensure compliance with local regulations.

It is important to note that there are specific exemptions set forth for overseas companies that originate from other EU member states, as dictated by various EU directives. These companies must provide the Registrar with a formal certificate.

Businessmen interested in receiving more details on how to register a representative office in Cyprus can address our Cypriot law firm for legal representation.