I. Types of Cyprus Companies:

The Cyprus Companies Law, cap. 113, is based on the UK Company Law (UK Companies Act of 1948, mainly).

A Cyprus company can be one of the following legal entities:

Private Limited Company

  • Number of members can be between one and fifty.
  • There can be no invitation to the public to subscribe for any shares or debentures.

Public Limited Company

  • Must have at least seven founding members.
  • It can invite the public to subscribe for the company’s shares or debentures.
  • No restriction on share transfer.

Company Limited by Guarantee

  •  The liability of each member is limited to the amount agreed on the Memorandum of Association to be contributed in the event the company goes into liquidation.

II. Private Limited Companies:

 Some general characteristics

  • The number of members can be only one (“One Member” company).
  • The liability of every member is limited to the number of shares held in the Share capital.
  • No bearer shares can be issued.
  • Preferential shares or different classes of shares can be issued. (voting, non voting, e.t.c.).
  • The right to transfer shares is restricted (according to the Law & the Memorandum and the Articles of Association of the Company).
  • The word “limited” must appear at the end of the name of the company.
  • There can be only one Director who can be either Cypriot or a foreigner and the Board Meetings can be held anywhere in the world
  • The company must have a registered address in Cyprus and (advisable) a company Secretary.
  • Any charges against the company must be registered with the Company Registrar in order to ensure priority and protection against other creditors of the Company.