When a foreign investor decides to set up a company in Cyprus, he must at first make up his mind upon the type of company that best suits his interests. The companies accepted by the Cyprus companies law.
Our company formation experts have prepared a video about the main types of legal entities:
This type of company is the most popular in Cyprus. There is no minimum share capital required. It is necessary that one to 50 shareholders set up a LTD in Cyprus. They subscribe nontransferable shares and are liable to the company’s obligations only to the extent of their contribution. A private company which is entirely owned by foreign investors is also known as an offshore company or an International Business Company.
A Public Company Limited by Shares in Cyprus is quite similar to a private company limited by shares. However, the difference is that the shares are freely transferable and there can be as many shareholders as wished. The incorporation of a public company limited by shares requires at least 15,000 CYP as an initial capital.
A company limited by shares has a similar structure to the one for limited companies, but it is usually a type of company established for non-profit purposes and charitable actions.
A general partnership in Cyprus can be formed by two to twenty individuals. Registration of the partners with the Registrar of Partnerships is mandatory. No capital is required nor auditors. Partners are fully liable for this partnership to the extent of their private assets.
The difference between a general partnership and a limited partnership is that the latter must have a general partner who is fully liable for the company’s obligations and at least one limited partner who is liable to the extent of his contribution. Just like the general partnership, a limited partnership requires at least two partners who must register with the Registrar of Partnerships.
The main characteristic of a sole proprietorship in Cyprus is that the company is run by a single member with full liability. It is a simple and informal type of business, but still has to register with the Registrar of Partnerships.
For more information about the types of companies that can be established in Cyprus or matters regarding the taxes that must be paid by entrepreneurs, please contact our Cipriot company formation specialists.