General Partnerships in CyprusUpdated on Wednesday 07th December 2016
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The Partnership Law in Cyprus
Partnerships in Cyprus are regulated by the Partnership Law. The Partnership Law is part of the Cypriot Civil Law distinguishes two types of partnerships:
- the general partnership;
- the limited partnership.
We invite businessmen to watch a short video on the regulations related to a general partnership in Cyprus:
The Partnership Law recognizes the legal relation between the founders of the partnership, but does not recognize the partnership as a separate legal entity. Because of this particularity, partnerships’ activities are distinguished from the activities carried out by companies registered under the Cypriot Commercial Law.
What are the conditions of existence of Cypriot general partnerships?
According to the Partnership Law, Cypriot general partnerships may only exist if it represents a relation between persons conducting business activities with the purpose of obtaining a profit. The general partnership must satisfy three conditions according to the Partnership Law in Cyprus:
- - it must carry out a business,
- - it must have at least two partners,
- - it must have the purpose of obtaining a profit.
Partnerships registered as Cypriot limited liability companies under the Commercial Law or any other laws are not considered general partnerships. General partnerships may have a maximum of 20 members, or if conducting banking activities, a maximum number of 10 members. All members of Cypriot general partnerships are considered jointly and separately liable for the partnership’s debts and obligations.
The registration procedure for general partnerships in Cyprus
In order to register a general partnership, a written statement signed by all the founding members must be submitted with the Cypriot Companies Registrar. The statement must contain the following information:
- - the partnership’s name,
- - the nature of the business activities,
- - the place where the business will take place,
- - details about the partners such as names, nationality, residency and business occupation,
- - the date of commencing the business activities,
- - the contribution of each partner,
- - the authorized representatives of the general partnership.
The statement must be submitted within one month from the formation of the Cypriot general partnership.
For complete information about the establishment and taxation of general partnerships please contact our law firm in Cyprus.