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Types of Companies in Cyprus

Types of Companies in Cyprus

Companies registered in Cyprus are subject to the Company Law, which is modeled on the English Companies Act of 1948. Throughout the years amendments have been brought in order to align it to the European standards. Cyprus offers a diversity of companies that will offer investors many opportunities for development. If you are interested in opening a company, get in touch with our lawyers in Cyprus.

All types of companies can opt for EORI registration in Cyprus.

You can also watch the video below for information about the main types of Cypriot companies

Explore the diverse realm of Cyprus companies

Embarking on a business endeavor in Cyprus opens doors to many opportunities, offering various advantages tailored to meet the diverse needs of entrepreneurs. Understanding the types of Cyprus company structures and their characteristics is paramount for individuals seeking to establish their ventures. Consult experienced lawyers at our law firm in Cyprus for details:

Private limited liability company

Among the types of Cyprus companies, the limited liability company (LTD) stands as a preferred legal form, available in both private and public forms. When set up as a private company, founders bear responsibilities in accordance with their share capital participation, as stipulated in registration documents. Notably, a private limited liability company must enlist a minimum of one shareholder, with an upper limit of fifty, excluding individuals listed or previously listed. For more information on this company structure, our Cypriot attorneys can offer comprehensive assistance.

Public limited liability company

Conversely, the public limited liability company assumes a similar framework with regard to share capital and member liability. It distinguishes itself by offering shares for public acquisition and potential listing on stock exchanges. A minimum of seven members is requisite for a public company, with a statutory minimum capital requirement of €25,629 for valid registration.Cypriot public company must have at least 2 directors. The minimum share capital must be submitted before the trading certificate is issued.

Limited liability company with guarantee and share capital

Another legal entity is the limited liability company with guarantee and share capital, wherein member responsibilities extend not only to their share capital but also to contributions in the event of company dissolution. This versatile model can operate both privately and publicly held, with the latter empowered to offer shares for public purchase. If you want to incorporate a limited liability company with guarantee and share capital, the services of our Cypriot law firm are at your disposal.

Variable capital investment company

The variable capital investment company is categorized as a limited liability company with shares. Characterized by shares without nominal value, this type of enterprise is predominantly used to create funds. These require a license from the Cyprus Securities and Exchange Commission (CCP) to function as collective investment undertakings.

The flexibility of the variable capital investment company extends to its potential classification as either private or public, contingent upon the nature of the Collective Investment Organization. While a private variant accommodates one to fifty members, public counterparts require a minimum of one member. Initial capitalization prerequisites vary according to the specific type of investment company.

Exempt private company in Cyprus

An exempt private company is made by a corporation and another company. It has a maximum number of 50 debenture holders, only the exempt company holds its shares and the director belongs to the company also. The exempt private company is not required to file accounts with its annual return and it is not subject to the statutory restrictions on loans to directors.

Company Limited by Guarantee in Cyprus

The Cypriot company limited by guarantee is usually a charitable or a non-profit company. The liability of its members is limited to the agreed-upon memorandum to be contributed in case the company goes into liquidation.

Branch of overseas companies in Cyprus

Any foreign company has the right to open a branch in Cyprus. During its first month of establishment, it is required to fill in a certified copy of the Memorandum and articles of association, a list with all directors and secretaries, and the name and address of its Cypriot representatives. All articles must be submitted in Greek. 

General partnership in Cyprus

Partnerships in Cyprus are submitted to the Partnerships and Business Names Law. They must be registered with the Registrar of Partnerships within one month of formation, providing their name, purposes, and place of business. Foreigners are also allowed to participate in Cypriot general partnerships. A general partnership is allowed to have between 2 and 20 individual members. There is an exception when it comes to the banking area where the maximum number of partners is 10.

Limited partnership in Cyprus

Limited partnerships in Cyprus refer to the fact that one or more general partners have to hold unlimited liability and the rest of the partners will have limited liability. The main advantage is for limited partnerships and offshore companies working together as they both benefit from tax flexibility. If you need an experienced Cyprus tax lawyer, do not hesitate to consult us.

Sole proprietorship in Cyprus

Cypriot sole proprietorships are also governed by the Partnership and Business Names Law. Sole proprietors run a business on their own with or without employees. A sole proprietor will have unlimited liability for his debts. 

Trusts in Cyprus

There are three types of trust that can be registered in Cyprus: the local trust where both settlor and beneficiaries are residents of Cyprus, the offshore trust is the same as the local trust except the beneficiaries have to be non-residents, and all the trust’s activities are outside Cyprus and the international trust where both settlor and beneficiaries are non-residents, but one trustee has to be Cypriot.

In summary, navigating the Cypriot company structures offers many possibilities for entrepreneurs, each type catering to diverse business models and operational needs. Whether opting for the limited liability company or the variable capital investment, Cyprus provides plenty of opportunities for astute business ventures. If you are interested in opening this company structure, our Cypriot lawyers can help you. 

Besides opening a company, if you are interested in buying a property in Cyprus, the services of our local lawyers are at your disposal. 

Taxes on corporate income in Cyprus 

Tax residency in Cyprus entails companies being required to pay taxes on income generated from all sources globally. Cyprus tax residents are subject to a fixed Corporate Income Tax (CIT) rate of 12.5%. Conversely, non-Cyprus tax resident companies face taxation on income earned through business activities conducted via a Permanent Establishment (PE) and specific other income from Cyprus sources. 

The Cyprus CIT law incorporates various exemptions tailored for diverse types of incomes, profits, and gains. Notably, ship-owning companies can avail themselves of a complete exemption on profits arising from the operation or chartering of ships registered within the European Union or European Economic Area (EEA), and potentially from other foreign jurisdictions, subject to certain stipulations. Furthermore, Cyprus does not levy local government taxes on income.

Cyprus: Top industries and market share

Please find below some of the top Cypriot industries along with their market shares: 

  • Finance, insurance, and real estate: 37,274 companies, representing 16.7% market share;
  • Services: 31,304 companies, comprising 14.1% market share;
  • Wholesale trade: 24,334 companies, making up 10.9% of market share;
  • Retail trade: 12,546 companies, with a market share of 5.6%;
  • Construction: 7,075 companies, contributing to 3.2% market share;
  • Transportation, communications, electric, gas, and sanitary services: 5,433 companies, representing 2.4% market share;
  • Manufacturing: 4,584 companies, accounting for 2.1% market share;
  • Agriculture, forestry, and fishing: 1,077 companies, comprising 0.5% market share;
  • Mining: 137 companies, making up 0.1% market share;
  • Public sector: 123 companies, with a market share of 0.1%.

If you need accurate information on regulations of marriage in Cyprus, our lawyers can help you. Please contact our attorneys for a personalized consultancy.

Considered one of the safest places to live in Europe, Cyprus attracts new investors every year. If you want to set up a company in other European countries, such as Malta, Russia, or Latvia, you may contact our local lawyers or our local specialists in company formation.