Does my company get a Social Insurance Number?
When establishing a company in Cyprus, it is important to obtain a Social Insurance Number (SIN) for your company. This is not just a formality but a legal requirement for employers and employees. Your tax consultant will handle the application for the company's SIN as part of the company registration process to ensure a smooth process.
The Social Insurance Number (SIN) is needed for any company planning to hire employees, whether it is the director or staff. It is essential because it links your company to the national social insurance system, which provides various benefits such as pensions, maternity, and unemployment benefits. In Cyprus, employers are legally obligated to register themselves and their employees with the Social Insurance Services Department to ensure contributions are made for social security coverage.
How to get a social insurance number in Cyprus
For those interested in our comprehensive company formation packages, SIN registration for the employer and one employee is already included in the service. This means that once your company is registered, you won't need to worry about navigating the complexities of social insurance registration yourself. Everything will be handled on your behalf, with all relevant documents and certificates uploaded to your company profile for easy access.
Social Insurance Services
Suppose you want to handle the SIN registration on your own. In that case, you must submit specific forms to the Social Insurance Services online or in person. You must complete Form YKA 1-001 for the employer's registration and Form YKA 1-008 for each employee. It's vital to note that registration must be done within 30 days of the start of employment. Failing to do so could lead to penalties.
- Social Insurance Services Department Cyprus (Website)
- Registration Form for the employer (Document)
- Registration Form for every employee (Document)
Social Insurance Contribution
In Cyprus, employers and employees must contribute to the Social Insurance Fund. According to the latest regulations, employers must contribute 8.8% of their employees' gross salary, while employees must also contribute 8.8%. These contributions fund various social benefits, including pensions, and other social security payments to which employees are entitled. To learn more about the contribution to social insurance, please check our Cyprus salary calculator.
| Contribution | Rate | Cap |
|---|---|---|
| Self-employed individuals | 16,6 % | € 62.868 |
| Employee | 8,8 % | € 62.868 |
| Employer | 8,8 % | € 62.868 |
| Redundancy Fund (Employer) | 1,2 % | € 62.868 |
| Human Resource Development Authority Fund (Employer) | 0,5 % | € 62.868 |
| Social Cohesion Fund (Employer) | 2 % | no cap |
Conclusion
In summary, if your company has employees, it must be registered with a Social Insurance Number in compliance with Cypriot law. By choosing our company formation packages, you can be confident that all documentation, including SIN registration, will be handled efficiently and with no extra charges. Allow your accountant to manage the administrative tasks while you concentrate on developing and expanding your business.