Types of business entities in Сyprus
Business entities in Cyprus can operate under the following forms:
- Limited company
- Sole proprietor or partnership
- Branch
- European Public Limited Companies, otherwise known as Societas Europaea (“SE”).
The redomiciliation of foreign companies to Cyprus, and vice versa, is possible. This means that companies may migrate from another jurisdiction to Cyprus (and vice versa) without the need for a takeover or a transfer of assets to another company already registered in the destination country.
Registration procedure of a limited liability company
COMPANIES MAY MIGRATE FROM ANOTHER JURISDICTION TO CYPRUS
Under the Companies Law, the procedure for the formation and registration of a company in Cyprus is quite simple and as follows:
Approval of name
The redomiciliation of foreign companies to Cyprus, and vice versa, is possible. This means that companies may migrate from another jurisdiction to Cyprus (and vice versa) without the need for a takeover or a transfer of assets to another company already registered in the destination country.
Filing of the memorandum and articles of association
To effect registration of a company, the Memorandum and Articles of Association must be submitted for filing with the Registrar of Companies.
A Specimen Memorandum and Articles of Association can usually be made available but care should be taken to ensure that the first few main object clauses are tailored to the specific circumstances and main business objects (aims or activities) of the company.
Share capital requirements
There are no legal requirements as to the minimum or maximum share capital of the company. In the case of foreign direct investment, there are some indicative minimum levels of investment depending on the sector.
Shareholders
Under the relevant legislation there must be at least one shareholder, for whom the following information is required to be disclosed to the Registrar of Companies:
- Full name & nationality
- Address & occupation
- Number of shares held.
Directors
How directors are appointed is usually laid down by Articles of Association, as well as how many constitute a quorum. However, it is usual for there to be at least two directors. The names of the directors are also required to be disclosed to the Registrar of Companies.
Doing business in Cyprus 11 company secretary
The appointment of the secretary is made by the directors in accordance with the Articles of Association. For practical purposes a body corporate may be appointed secretary.
Registered office
Every company must have a registered office in Cyprus, which is determined by the directors.