From ship management to ICT enterprises to micro businesses, Cyprus has long been a preferred jurisdiction for Indian companies entrepreneurs expanding into Europe. In recent years, this trend has accelerated, with several high-profile Indian businesses establishing a presence on the island. The increase of Indian-owned Cyprus companies demonstrates the attractiveness of Cyprus.
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Indian-owned Cyprus companies
There are many Indian-owned Cyprus companies in Cyprus since decades. Here are some most recent and better know names:
LTIMindtree, the multinational technology consulting and digital solutions company, is setting up a significant operation in Cyprus to drive its AI development initiatives.
Voicing.AI, an Indian company specialising in Agentic AI for inbound and outbound call automation, is building a strong Cyprus subsidiary to serve international clients with advanced customer experience solutions.
Drone Destination, a leading Indian drone technology and training provider, is establishing its European base in Cyprus to expand across the markets of Europe, the Middle East, and Africa.
These moves highlight a broader trend: Indian companies are increasingly choosing Cyprus for its business-friendly environment, straightforward regulatory framework, and efficient tax regime. Beyond the corporate benefits, Cyprus also offers easy access to decision-makers, a skilled workforce, and an attractive quality of life – making it not only a strategic gateway to Europe but also a place where international teams can thrive.
That’s what makes the number of Indian-owned Cyprus companies growing rapidly.
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Registrations of Indian-owned Cyprus companies
Cyprus is becoming one of the fastest-growing destinations for Indian entrepreneurs setting up international companies. Registrations of Indian-owned Cyprus companies have risen sharply in 2024 and even more in the first half of 2025. The attraction is not only the low corporate tax rate of 12.5%, but also Cyprus’s position as a flexible, EU-compliant base for scaling businesses, protecting intellectual property, and raising investment.
For Indian founders looking to expand beyond domestic markets or to position themselves for global growth, Cyprus offers a combination of practical advantages that go far beyond tax.
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Why Indian Entrepreneurs Choose Cyprus
- Credibility with investors – An EU company structure is often seen as more reliable than offshore options such as Mauritius or BVI, which can sometimes raise compliance questions.
- Straightforward setup – No minimum capital, full foreign ownership, and formation within 7–10 working days.
- International reach – Ability to contract globally, invoice in euros, and operate across the EU without additional registrations.
- Banking and payments – Access to EU banking and payment systems, which is often challenging from India directly.
- Flexibility – Whether you want to run the company from India, relocate to Cyprus, or combine it with your UAE operations, the structure is adaptable.
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Tax Efficiency with Treaty Protection
Cyprus has one of the most competitive tax frameworks in the EU, and Indian-owned Cyprus companies do benefit from it:
- Corporate tax at 12.5%.
- No withholding tax on dividends (subject to non-dom or treaty conditions).
- No tax on the sale of shares, bonds, or other securities.
- Over 65 double tax treaties, including India–Cyprus.
Even with the global minimum tax of 15% gradually being introduced, many Indian-owned Cyprus companies will still benefit from Cyprus’s favourable regime.
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IP and Technology: a focus of Indian-owned Cyprus companies
Cyprus has positioned itself as an innovation hub within the EU. The Cyprus IP Box Regime is a key reason:
- Effective tax as low as 2.5% on qualifying royalty income.
- 80% of income from patents, software, or similar IP is exempt from tax.
- Fully OECD-aligned, ensuring global recognition and acceptance.
For SaaS, AI, fintech, biotech, and other R&D-driven ventures, this creates a strong base to hold and license intellectual property internationally.
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Relocation and Non-Dom Benefits
Many Indian founders eventually decide to relocate or at least spend more time in Europe. Cyprus makes this simple through its Non-Domiciled Tax Resident status:
- No tax on dividends and interest for 17 years.
- No inheritance tax.
- Competitive personal tax on global income.
- Requirement of only 60 days’ presence per year, with basic ties such as a directorship or company ownership.
This allows founders to retain flexibility while accessing the benefits of European residency, education, healthcare, and quality of life.
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Wealth and Succession Planning
For high-net-worth entrepreneurs and family offices, Cyprus International Trusts (CITs) offer a discreet and efficient solution:
- No public registry, ensuring confidentiality.
- Zero taxation if structured correctly.
- Asset protection and succession planning tools.
Indian families increasingly see Cyprus as a preferred alternative to Mauritius trusts for estate and cross-border wealth management.
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A Platform for Global Expansion
A Cyprus holding company can be more than a holding structure — it can actively support international growth:
- Holding shares in Indian or UAE companies.
- Running EU marketing, sales, and logistics operations.
- Attracting European investors and partners.
- Licensing products and protecting trademarks and patents.
For small founder-led teams, digital entrepreneurs, or scale-ups preparing for funding, Cyprus provides both credibility and flexibility, which provides Indian-owned Cyprus companies with substantial advantages.
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Cyprus Compared to Other Jurisdictions
Many Indian founders consider jurisdictions such as Dubai, Singapore, or Mauritius. Each has its strengths, but Cyprus offers a distinct balance:
- Dubai (UAE): Excellent for regional operations and tax-free structuring, but limited access to EU markets, VAT systems, and IP incentives. Cyprus can complement a UAE setup by adding EU credibility and treaty coverage.
- Singapore: Strong for Asia-Pacific operations with robust banking, but higher operating costs and limited EU access. Cyprus often provides a more cost-efficient route into Europe.
- Mauritius: Previously a common choice for India-related holding structures, but increasingly scrutinised by regulators and investors. Cyprus offers stronger EU recognition and better alignment with global compliance standards.
- Cyprus: A recognised EU member state with competitive tax rates, extensive treaty networks, investor credibility, and a strong framework for IP and cross-border operations.
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The Strategic Moment: 2025
This year is a turning point. With global tax reforms, stricter EU rules on AI and ESG, and India’s own evolving compliance requirements, more Indian founders are taking a serious look at where their company should be based.
Cyprus offers a middle path: an EU company structure with efficient taxation, straightforward compliance, and a reputation that investors respect. For founders aiming to expand globally, protect IP, or prepare for investment rounds, it provides a strong foundation without unnecessary complexity.
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Disclaimer:
The information provided in this article is for general informational purposes only and does not constitute legal, financial, or tax advice. While we strive to ensure that the information presented is accurate and up-to-date, tax laws and regulations are subject to change and may vary based on individual circumstances. We strongly recommend consulting with a qualified tax advisor or legal professional before making any financial or business decisions based on the information provided here.
Shanda Consult does not accept any responsibility or liability for any loss or damage incurred as a result of the use of this information.
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