Corporate Related

Information on Cyprus Company Formation

Posted On : 24-07-2017

The process of incorporating a Cyprus company is straight forward.

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Frequently asked questions (FAQ) relating to company’s share capital

Posted On : 02-06-2017

What is the liability of shareholders of a Cyprus limited company?

A company limited by shares has separate legal personality from that of its shareholders. The liability of a shareholder for the company's liabilities is commonly limited to the amount, if any, that remains unpaid on that shareholder's shares.

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Frequently asked questions (FAQ) relating to company’s management

Posted On : 02-06-2017

What are the responsibilities of Directors in a limited company?
The Board of Directors of the company is responsible for the day to day management of the company’s business.

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Issue of Debentures/Bonds in a Cyprus private limited company

Posted On : 04-04-2017
According to Section 29 of the Cyprus Companies Law Cap. 113 (the “Law)” a private company, is a company which by its articles of association (a) restricts the right to transfer its shares;...
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Company in financial difficulties- steps to take

Posted On : 09-02-2017

The Cyprus Companies Law recognizes three formal procedures for companies in financial difficulties:

  • A reorganization plan of the company and/or a settlement between the company and its creditors may be effected following the approval of the court;
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Establishment of a Branch in Cyprus

Posted On : 17-08-2015
A branch or a representative office of an overseas company may be registered in Cyprus under Section 347 of the Companies Law, Cap. 113 (the “Law”) provided that within one (1) month of the establishment of the place of business, it registers itself as an overseas company with the Registrar of Companies in Cyprus.  Overseas companies may establish a branch in Cyprus by filing with the Registrar of Companies in Cyprus the following documentation:
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Floating Charges

Posted On : 11-03-2015

In general, a floating charge is a type of a security which “floats” all over the assets of the borrower-company, until an event of default occurs or until the company goes into insolvent liquidation, at which time the floating charge crystallises and attaches to all the then existing assets. Until such an event takes place, the company may carry on its business in the ordinary course and subject to the terms of the debenture may sell, mortgage or otherwise deal with its assets and pay dividends out of profits as though the floating charge had not been created.

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Differences between Public & Private Companies in Cyprus

Posted On : 02-10-2014

The major differences between a public and a private company are provided in the Companies' Law. 

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Trade Mark: How to achieve its registration in Europe and Internationally

Posted On : 22-09-2014

A trade mark is one of the most valuable assets of a business since it is the way that customers identify and distinguish a product/service and that is why it is important to register such trademarks. A trade mark may be registered nationally but also in Europe and/or internationally. 

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Shareholders' agreements

Posted On : 01-08-2014

The shareholders of a company, prior to incorporation of the company, may enter into an agreement between themselves relating to the participation in the management of the business, sharing profits and the arrangements for buying each other out.  Alternatively, the company may by contract confer rights on individual shareholders on matters such as the composition of the board, the payment of dividends etc. 

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Security by a way of a pledge over shares in a Company

Posted On : 28-07-2014

Modern economic societies involve transactions and financing by corporations and consequently, securities are often required by the creditors for such transactions. One form of a security is a pledge over shares in a company, which by its nature is a possessory security interest and thus involves the delivery of possession, actual or constructive. In simple words, a pledge is a method of security in order to assure the repayment of a debt or the performance of an act under a contract.

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Registration of a limited liability company by guarantee - Cyprus

Posted On : 02-05-2014

A Company Limited by Guarantee is ‘a company having the liability of its members limited by the memorandum to such amount as the members agree may respectively thereby undertake to contribute to the assets of the company in the event of it being wound up.’ Therefore, the members of the company do not have to pay anything unless the company is wound up and the amount is limited to the amount agreed on the memorandum. 

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Conversion from an existing Public company to a Private company

Posted On : 03-02-2014

A public company may be converted to a private company at any given time of its life time.

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Registration of a Society in Cyprus

Posted On : 15-01-2014
According to the Societies and Institutions Laws 1972 and 1997, “Society” is an organized association of at least twenty (20) persons for the attainment of a certain non-profitable object.
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Duties & liabilities of Directors under Cyprus Law

Posted On : 18-12-2013

Cyprus Companies Law provides that every private company must have at least one director and every public company must have at least two directors (s.170). 

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Insolvency procedures in Cyprus

Posted On : 18-12-2013

Insolvency procedures are governed by the Cypriot Companies Law Act, Cap 113. 

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Amendments to the Companies Law in relation to the keeping of books of account

Posted On : 10-10-2013

The Companies Law has been amended by Law 90(Ι)/2013 published in the Official Gazette on 26 July 2013.  The amendment effected is the following: Keeping books of account

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Dissolving a Cyprus company voluntarily

Posted On : 17-09-2013

In Cyprus, there are two main methods of dissolving a company voluntarily.  The easiest and cheapest method is the strike off method and the Members’ Voluntary Winding Up method. 

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Trade Mark Registration and Practice in Cyprus

Posted On : 01-05-2013

In order for a trade mark to be registered in Cyprus, a written application for registration in the Register must be filed at the Registry of Trade Marks.

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Licensing of a Bank in Cyprus

Posted On : 02-04-2013

Under the Central Bank of Cyprus (CBC) Law, 2002 -2007, and the Banking Law, 1997- 2009, the Central Bank of Cyprus is the competent authority for the supervision and licensing of banks.  In exercising its supervisory role, the CBC is guided by the recommendations of the Basel Committee on Banking Supervision, the guidelines issued by the European Banking Authority (EBA), and the rules of the EU. In this connection, various directives, circulars and guidelines regarding prudential supervision are issued by the CBC to all banks operating in Cyprus. The supervision of banks incorporated in Cyprus, including both their domestic and foreign subsidiaries and branches, is exercised by the CBC on a consolidated basis.

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Flat Annual Fee paid to the Registrar for all Companies

Posted On : 04-02-2013

The Cyprus government has introduced a levy of €350 payable by all Cyprus Companies. The levy is an annual fee payable as follows:

  • A fixed annual levy of €350 is imposed to all companies that are registered in Cyprus.
  • For Group of Companies the total amount cannot exceed the €20.000.
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New Fiduciary Law in Cyprus

Posted On : 19-12-2012

After so many years of consultations, the new Fiduciary Law was finally passed on December 12th by the plenary of the House of Representatives in Cyprus.

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Mutual Funds in Cyprus

Posted On : 29-01-2012

The recent changes in the Cypriot Income Tax Law and Special Contribution for the Defence Law definitely open a new era for Mutual Funds in Cyprus.  These are effective as from the tax year 2009.

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Registration of International Business Branches in Cyprus

Posted On : 11-10-2011

Under Section 347 of the Companies Law (Cap 113), companies incorporated outside the jurisdiction of the Republic of Cyprus may register a branch in Cyprus. The registration procedure is to a large extent identical with the incorporation of a new company in Cyprus with the major difference being that the registration of a branch in Cyprus does not create a new legal entity in Cyprus. What this essentially means is that the legal entity, which is established under a different jurisdiction, has a branch in the Republic of Cyprus and it may operate through this branch for its international activities.

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Classes of shares in a limited liability company in Cyprus

Posted On : 01-10-2011

It is important to explain and differentiate between:

a) Authorised share capital
b) Issued or allotted share capital- the total nominal amount actually issued to shareholders at any time
c) Paid up share capital- the amount so far paid on shares which have been issued
d) Uncalled share capital- the amount which the company is entitled to call on shareholders to contribute

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The duties of Directors in a company

Posted On : 20-05-2011

Directors have powers to take majority business decisions on behalf of the companies. Consequently, various duties are imposed on them, to ensure that the companies' interests are protected.

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Procedure of re-domiciliation (transfer) of an overseas company to Cyprus

Posted On : 03-04-2011

The procedure of re-domiciliation (transfer) of an overseas company to Cyprus is quite simple and straight-forward.

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Cyprus Holding Company Formation & Registration

Posted On : 15-02-2011

Cyprus offers important possibilities for international tax planning. One such possibility which has proved to be very beneficial for international businesses is the use of a Cyprus Holding Company.

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