
When
opening a business in Cyprus it is important to know that, according to the rules and regulations provided by the
Cypriot legislation, the
company can change its
business structure if, of course, several conditions are met. It is recommended to
change the business structure of the
company when its
current legal statute limits the
development of the business. Foreign and local entrepreneurs who are interested in
changing the legal entity under which their business is carried out can receive assistance of the matter from
our team of Cypriot company formation specialists.
Changing a sole proprietorship into a Cypriot limited liability company
Although most of the
businesses incorporated in Cyprus do not require changing their
legal entities, the procedure is still applicable in several cases. One of the most
common legal entity changes refers to the
sole proprietorship, which is usually
re-registered as a limited liability company. A
sole proprietorship is the
simplest type of business in Cyprus, as it is incorporated by a natural person, who will carry out various business activities in his or her own name (and who is personally responsible for the
liabilities of the company).
The change is recommended when the business is developed and requires a more
representative regulatory framework. Choosing a
limited liability company (LLC) provides protection for the shareholder, as he or she will be responsible for the company’s debts only in extent to the shares owned in the business;
our team of Cypriot company formation agents can provide more information on the
advantages of a LLC in Cyprus.
How to change a legal structure in Cyprus
In order to
change a legal entity with another one, the investor will have to
de-register the current entity and to register it again, under the
new structure.
Companies in Cyprus are registered at the
Registrar of Companies and any other changes that may occur during the lifetime of the business will have to be reported at this institution.