Company LawLaw plays a fundamental and integral part of any business.
Through the auspices of our legal department we aim to provide our clients a full and complementary range of services from statutory requirements to business requirements.
Incorporation of Private Company Limited by Shares.
The relevant legislation is Cyprus Companies Law, Cap. 113, which is virtually a copy of the English 1948 Companies Act.
A private company is one which:
- by its articles restricts the right to transfer its shares
- limits the number of its members to 50
- prohibits any public subscription to shares or debentures.
The Companies (Amendment) Law of 2000 (Law 2(I)/2000) introduced single-member companies. The Companies (Amendment) (No. 3) Law of 2000 (151(I)/2000) introduced new provisions as to the validity of transactions of companies and as to the information which must be included in the official documents of companies. The Companies (Amendment) Law of 2001, Law 76(I) of 2001 provided for a new system for the certification of companies’ auditors and for the recognition of Bodies of Auditors and the grant of approval to auditors with foreign qualifications and also the recognition of accountants' companies by the Council of Ministers.
When 100% foreign-owned, a private company is referred to as an 'offshore company', although recently the expression International Business Company has come into favor. However, as from 1st January, 2003, an offshore company (IBC) no longer has a separate taxation status, and is taxed according to the same principles as a regular company. IBCs are now allowed to trade inside Cyprus. However, a pre-existing IBC which makes an irrevocable commitment not to trade inside Cyprus until 2006 is able to claim the existing low tax rate for the three years 2003, 2004 and 2005. Besides the most common way of Incorporating Private Company Limited by Shares we are offering the formation of other legal forms of enterprises such as:
- Public Company Limited by Shares
- Exempt Private Company
- Company Limited by Guarantee
- General Partnership
- Limited Partnership
- Branch of Overseas Company