ΕλληνικάCompany Formation in Cyprus
The main legislative body governing the rules and policies of companies in Cyprus is the Companies Law, Cap. 113, which, since its establishment in 1951, has been amended periodically to harmonize, among other things, with other EU legislation. This law adopted provisions almost identical to the English Companies Act of 1948. It is no coincidence that the Cypriot legal system is generally based on the principles of Anglo-Saxon (commonly referred to as “common”) law.
We are future-oriented by setting strategic long-term goals; planning ahead is not just a necessity but an inherent characteristic of our corporate identity.
Our mind-set is global thus we enjoy working seamlessly across borders.
We strive for fairness by treating everyone with respect, not just courtesy.
We focus on delivering world-class legal services and advice, thus reaching for the highest standard possible means that excellence is the only threshold.
Navigating Entrepreneurial Opportunities in Cyprus with Expert Legal Guidance
Many entrepreneurs wish to operate in Cyprus as they benefit from low tax rates, simplified procedures in dealing with public services, and reduced bureaucracy. At the same time, flexibility and full control over business activities are ensured on a continuous and permanent basis.
Depending on the type of company you wish to establish, you must follow the respective procedures. At OIKONOMAKIS LAW, our specialized team of lawyers can guide you correctly for every type of company.
An Overview of Legal Types and Formation Processes
According to the Companies Law, the following types of companies are provided for establishing a company in Cyprus:
Companies (private or public)
Partnerships (general or limited)
Trade Names
European Companies (SE)
A Limited Liability Company can be either Public (PLC) or Private (LTD) and is distinguished by the size and number of shares.
Private Companies, in turn, are classified into:
Exempt Private Companies
Private Limited Liability Companies
For these, there is no minimum requirement for share capital, and the maximum number of partners in such a company is up to 50.
On the other hand, for a Public Limited Liability Company (PLC), there is a minimum share capital requirement, but there is no limit on the number of partners who can register.
The law regulating sole proprietorships (“trade names”) and partnerships is the Partnerships and Trade Names Law, Cap. 116, which defines two general types of Partnerships:
General Partnership
Limited Liability Partnership
A Partnership is the relationship existing between persons conducting business jointly for profit, but the relationship between members of any company or association which:
(a) is registered as a company under any law relating to the registration of companies with limited liability, or
(b) is constituted or acquires legal personality by or under any other law, is not a partnership within the meaning of this law.
Finally, Article 347 of the Companies Law provides for the registration of branches of foreign companies in Cyprus. In such a case, international businesses register in Cyprus and conduct their activities through the following types:
Offshore Private Limited Liability Company
Offshore branch of a foreign company
Offshore general partnership or limited liability partnership
The process of company formation in Cyprus requires the appointment of an authorized lawyer, who will be responsible for preparing all necessary incorporation documents and registering the company.
Your Trusted Advisors at OIKONOMAKIS LAW
Specialized lawyers at OIKONOMAKIS LAW undertake, as your authorized lawyers, to assist you at every stage of the process, including:
Assistance in choosing the legal form that meets and covers your needs
Collection of required documents
Submission of the application to the Cyprus Registrar of Companies for the approval of the company name
Issuance of the necessary incorporation documents for a Cypriot company
Issuance of a Cypriot Tax Identification Number (TIN) for the new company
Opening a bank account for the newly established company.