Most Popular Types of Companies in Cyprus

Private limited Liability Companies:

The most popular type of companies is the Private limited Company. Any person can register a private company because it allows a single shareholder and up to 50. The liability of each shareholder of a private limited company is limited to the amount of their subscribed shares. The right to transfer shares is restricted and it cannot offer its shares for subscription to the public.

 

Public Limited Liability Companies:

A Public Limited Liability Company can invite the public to subscribe for its shares and may be listed on the stock exchange. This type of companies needs minimum seven members and do not restrict share transfers. The minimum authorised and issued capital of a public company which can be offered for subscription must be €25.629.


Limited liability company by guarantee without share capital:

This type of company does not have a share capital and its members act as guarantors rather than shareholders. The liability of each member is limited by its Memorandum of Association according to the amount each member agrees to contribute to the assets of the company in case of dissolution. In the majority of cases these companies are incorporated as non-profit making organisations under section 20 of Cap 113.


Limited liability company by guarantee with a share capital:

This company has a share capital and the liability of its members is limited by its memorandum of association in two ways, 1. up to any unpaid amount for the shares they hold and 2. Up to the amount that each member agrees to contribute to the assets of the company in case of dissolution. 


Branch:

Any company incorporated outside of Cyprus may establish a legal presence in Cyprus through the legal form of a branch in Cyprus. The well-known ‘overseas companies’.


Variable capital investment company:

This company is a limited liability company by shares. The main characteristic of this type is that, according to its memorandum of association and the rules governing its operation, its shares do not have a nominal value but rather a variable value. The aforementioned company can be incorporated after it receives a relevant license from the Cyprus Securities and Exchange Commission (CySec) to operate as Collective Investment Funds (CIF).

Back to top