Change Your Business Structure in Cyprus
Change Your Business Structure in CyprusUpdated on Friday 27th October 2017
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Sometimes, a company might want to change its business structure in Cyprus and is able to do so according to the rules and regulations offered by the local legislation. This can be achieved under certain circumstances. Foreign and national businesspersons interested in changing their legal entity of their businesses can be assisted by our lawyers in Cyprus.
Transforming a sole proprietorship into a limited liability company in Cyprus
Even though the majority of companies registered in Cyprus do not require changing their business structure, this procedure can still be achieved under certain conditions.
One of the most popular legal business changes refers to the sole proprietorship, which is generally re-incorporated as a limited liability company.
A sole proprietorship is the most basic kind of company in Cyprus, since it is registered by private persons, who effectuate their activities in their own names, being personally responsible for the company liabilities.
Our Cypriot lawyers recommend business persons to effectuate this business structure change in Cyprus when the business is more developed and needs a more representative regulatory framework.
Selecting a limited liability company offers protection for the shareholder, since he or she will be liable for the company debts only in the extent of the owned shares. Our attorneys in Cyprus can offer more information on the advantages of a limited liability company in the country.
Why change the legal entity in Cyprus?
As a business develops, the needs of a company change as well. Here are some of the reasons why a company could wish to change its business structure in Cyprus:
• Tax considerations: our Cypriot lawyers can provide more details on this matter;
• Employees: having more employees alters a company’s liability and complexity, therefore you might choose to change into a business structure which offers you more protection against lawsuits;
• Liability protection: changing a business structure could diminish the personal liability of the owner by forming a company which could confer a certain liability protection, as described above.
If you would like to know more about how to change your legal type in Cyprus, or for assistance related to any legal issue in the country, we kindly invite you to get in touch with our Cypriot law firm.