Vat law in cyprus operates under the framework of the eu vat directive. Cyprus law cyprus corporate and commercial law firm. According to section 170 of the cyprus companies law, cap. Cyprus joined the european union in 2004, resulting in an economy offering. During the research period it acted for a mix of distressed companies, examiners and creditors on insolvency, restructurings, and liquidations under cyprus law. Cyprus companies are regulated by the companies act cap 1 ca.
The cyprus tax law allows for a qualifying company reorganization to be effected tax free at the cyprus level. Cyprus companies list is one of the many portals within the network that endeavors to provide a comprehensive listing of businesses and services that are based on the island of cyprus whose services lie within the field of cyprus companies list. Expressions referring to writing shall, unless the contrary intention appears, be. The company law on dividend distribution in cyprus the most important law which provides for the distribution of dividends in cyprus is the company act. This law shall be cited as the companies law of 1997 and shall come into effect after the lapse of thirty days from the date of its publication in the official gazette.
Our legal code follows the directives and regulations of the eu. The most important novelties related to private cyprus companies include the following. Recent changes in cyprus company law december 2018. The icpac is the organisation of professional accountants in cyprus.
Cap 1 is constituted of 392 detailed sectionsschedules which arecreate, inter aliainter alia, the companies law. Lexisnexis company law guide 20172018 lawyers in cyprus. The office of the law commissioner 9 provisions as to company. As there is a positive obligation under our contract law and companies law for such pledge agreements to be duly stamped in order to create a valid pledge, such an agreement would require the payment of the stamp duty. Office of the law commissioner nicosia, february, 2012. The department of it services is not responsible for content on external webpages. We provide high quality transaction and solution based legal advice on international and cyprus corporate law and commercial matters ranging from. Regardless of the needs to be fulfilled cyprus companies list will assist in the search to locate the company offering the ideal service. Company reorganizations under cyprus law august 2011. Eu crossborder mergers under cypriot law kaimakliotis. International financial reporting standards ifrss as adopted by the european union eu 2. Recent developments in the cyprus companies law cap 1. The companies law english translation and consolidation provisionally released by the.
The law regulates the formation, existence, and monitoring of the cypriot companies. The accusatorial system of criminal justice is similar in nature to the one adopted by common law. Whether you are interested in launching a startup or a small business, legal advice, and the preparation and filing of the appropriate documents to the government from a lawyer is essential. The origin of the cyprus companies law and other laws regulating business is uk legislation. As a result of over 80 years of british rule, english is the official second language after greek and english common law prevails as its legal system. Register of companies which continue outside cyprus. On 19 june 2015, the cyprus parliament enacted amendments to the cyprus companies law, cap 1the law in order to make the workings of the law more streamlined and business friendly. Note on recent amendments to the cyprus companies law on 19. These reorganization provisions fully comply with the relevant eu mergers directive. A gives a high level overview of the most common forms of security granted over immovable and movable property.
A cyprus company may be struck off the register either on the initiative of its directors and shareholders or by the registrar of companies. Amendments of 2011 regarding cooperative companies in greek only law regarding cooperative companies amendment of 20 in greek only laws regarding cooperative companies from 1985 to 20 unofficial unification in greek only 230i2004 law amendment no. An agreement which must be executed in writing in order to be valid under the law which governs such agreement, can be executed by a cyprus company without affixing the common seal. From 2016 onwards all companies in cyprus, including smalldormant companies, are subject to statutory audit and the exception. Note that titles which are in greek only have been given an informal tranlsation in order to include them in the portal. Recent changes to cyprus companies law and to the auditors. Cyprus is an island country in the eastern mediterranean and the third largest and third most populous island in the mediterranean. With an advanced, highincome economy and a very high human development index, the republic of cyprus has been a member of the commonwealth since 1961 and was a founding member. Independent auditors report unqualified opinion and basis of. Introduction of administrative fines for late filings the registrar of companies shall impose an administrative fine for late. Cyprus companies law cap 1 defines all laws and regulation for companies incorporated in cyprus. Nonexecutive independent directors must meet a number of minimum requirements, regarding their independence, set out in the code code, a. Chapter 1 of the companies law of 1959 amended in 1968 governs limited liability companies which are based on the united kingdoms companies act of 1948.
Web portal of the republic of cyprus laws regarding co. Cyprus companies law recent amendments the law amending the companies act, cap 1, number 4, of 2015 has been passed by the cyprus parliament. Throughout the years amendments have been brought in order to align it to the european standards. The principal legislation governing the formation and activities of business entities is contained in the companies law cap 1, as amended from time to time. Cypriot companies are governed mainly by the companies law, cap 1, as amended the companies lawcompanies law which is which is predominantly based on the english companies act 1948. This guide to law online cyprus contains a selection of cypriot legal, juridical, and governmental sources accessible through the internet. They are also experts on cyprus securities and exchange commission in cyprus. Criminal law in cyprus reflects to a large degree the prevalent principles and major offenses of the english common law, with great influence from the french penal code and the continental european criminal systems. Maria kyriacou and efrosini monou cyprus lawyers, cyprus. These laws are rooted in their respective english law and were adopted in the same form as existed prior to independence. Companies registered in cyprus are subject to the company law, which is modeled on the english companies act in 1948. Alexandros economou llc is a respected and reputable law firm in cyprus providing specialised legal services of outstanding quality.
Cyprus offers its corporations many benefits including. Recent amendments to the companies law, cap 1 redomiciliation of companies to and from cyprusdomiciliation of companies to and from cyprus securities. This page has not been translated in any other language. The new forms will come into effect upon notification to be issued by the registrar of companies. Be it enacted by his excellency the officer administering. The cyprus companies law was amended in december 2018 by the house of representatives law 149i2018. Bill entitled law amending the companies law short title cap. The amendments came in effect as from 19th of june 2015 with the aim to modernize several key provisions and facilitate cyprus corporate. G vassiliou law office has prepared this outline in order to assist any individuals or. In the context of acquisitions of cyprus private companies, the main legislation which is applicable is the cyprus companies law, cap 1 and cyprus contract law, cap 149.
The cyprus shipping regime 3 20 kpmg limited, a cyprus limited liability company and a member firm of the kpmg network of independent member firms affiliated with kpmg international cooperative kpmg international, a swiss entity. The ca emanates from the equivalent english companies act of 1948, and it has been in force in cyprus for over half a century, defining and. A cyprus limited liability company llc is the most popular legal entity formed by foreigners in cyprus. Power to dispense with limited in name of charitable and other companies. The amount to be paid is to be calculated in accordance with the value which the pledge. You will find below the key extracts from the cyprus companies law along with the full act. Cyprus corporation and company formation and benefits. No company shall be registered by a name which in the opinion of the council of ministers is undesirable. Prepare financial statements in accordance with the international financial reporting standards ifrs and the financial statements must be audited by an independent registered auditor in cyprus in accordance with international standards of auditing isas. Certain changes came into force at of the date of publication of the amending law. Cyprus company law requires all companies to use ifrs in the preparation of their financial statements. When it became independent, the constitution provided.
Eu crossborder mergers under cypriot law 1 introduction crossborder mergers in cyprus are regulated by the cypriot companies law, cap 1 which was amended to incorporate the relevant provisions of the eu directive 200556ec on crossborder mergers of limited liability companies. Under cyprus law, stamp duty is governed by stamp duty law 191963, as amended from time to time the law. What are the key laws and regulations that govern company law in your jurisdiction. The companies law was basic law was amended by the law 97. The companies law was amended by law 97i and the provisions of the amending law are the result of the transposition of the eu accounting directive 2034eu into domestic law. Under the law, private limited liability companies and joint stock companies are allowed to distribute dividends to their shareholders, provided certain requirements are met. Having been a member of the eu since 2004, gives cyprus credibility as a safe place to incorporate. The preincorporation stages of a cyprus company, assisting in drafting, advising on and implementing agreements between partnersshareholders aiming to set up business together through a cyprus company. The provisions of the amending law are the result of the transposition of the eu accounting directive 2034eu into domestic law.
Cyprus is a major tourist destination in the mediterranean. The ca emanates from the equivalent english companies act of 1948, and it has been in force in cyprus for over half a century, defining and setting the rules and parameters of the law governing cyprusincorporated companies and acting as the backbone to a vibrant commercial hub in cyprus. Cyprus companies law and types of cypriot companies incorporation and registration of cypriot companies influence of the eu laws on the cyprus company law. The amendments to the law broadly fall into three categories. General provisions with respect to memorandum and articles 21. Copies of instruments creating charges and mortgages to be kept by company. Amendments to cyprus companies law, cap 1 following recent amendments to the cyprus companies law, cap. The cyprus shipping regime the cyprus shipping regime 9 20 kpmg limited, a cyprus limited liability company and a member firm of the kpmg network of independent member. This memorandum is intended to provide practical guidance on. The legal framework for cypriot companies and how these. In accordance with the companies law in cyprus cap. Within the framework of the legislative reform and reorganization of the cyprus registrar of companies, the cyprus government has proceeded to the following amendments in the cyprus companies law cap 1. The board of directors of a cyprus company is the administrative body responsible for the day to day management of the company.