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The Share Capital in Cyprus

The Share Capital in Cyprus

Updated on Tuesday 22nd September 2015

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Foreign investors are allowed to open a business in Cyprus and can choose from several types of companies. However, there are minimum requirements a foreign investor must abide by in order to register a company in Cyprus.

The most common type of Cypriot company an investor opts for is the limited liability company, whether it is private or public. Both types of companies are subject to the Companies Law in Cyprus.

Minimum share capital for a private limited company in Cyprus

Upon registration, the owner of the private limited company is not required to pay a minimum share capital in Cyprus, but it is recommended to do so. The minimum share capital recommended when registering a company is 1.000 euros and each share must have a nominal value of 1 euro. The share capital of a Cypriot private limited company can be denominated in any currency. The minimum number of shareholders a private limited company is allowed to have is one, but there is a limit of maximum 50 shareholders. The liability of the shareholders in case anything happens to the company will be limited to the value of their contribution. It isn’t necessary for the minimum share capital to be paid upon registration, but it is required to be placed in the company’s bank account.

Minimum share capital for a public limited company in Cyprus

Unlike the private limited company, the public limited company in Cyprus is required to have a minimum share capital must be approximately 26,650 euros. The par value of the shares can be 1 euro, but the shares can be denominated in any currency. The company is required to have at least seven shareholders but there is no maximum limit to their number. The public limited company is allowed to trade its shares on the Cyprus Stock Exchange. The minimum share capital for public limited companies in Cyprus can be paid in time, but when incorporating the company with the Registrar of Companies, the issued share capital must be in the company’s bank account and it must be intended for business purposes solely.

Investors are attracted to the company-friendly tax regime and pro-business legislation for foreign investment in Cyprus. If you plan to open a company you can contact our law firm in Cyprus for legal assistance.



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