REGISTRATION OF CYPRUS COMPANIES

{ PRIVATE COMPANIES WITH LIMITED LIABILITY BY SHARES}

GLAFKOS N.RAPHAEL & CO ADVOCATES

20, HOMER AVENUE
OFFICE 102 NICOSIA 1097
TEL: 00357 22 665309
FAX: 00357 22 668634
E MAIL:

PARTICULARS FOR THE REGISTRATION OF A PRIVATE INTERNATIONAL BUSINESS COMPANY LIMITED BY SHARES IN CYPRUS.

The private company with limited liability by shares is mostly used as a legal entity for carrying on business in Cyprus.

This is the form which an International Business Company takes and it may be used as a holding company, which is a very useful vehicle for tax planning.

We, have of course, public limited liability companies, partnerships and, very recently, we can register in Cyprus the so called Societas Europaea (S.A.).

1.  NAME OF THE COMPANY

The first step for the registration of any company in Cyprus is to obtain approval for the proposed name of the company by the Registrar of Companies.  The Registrar of Companies is unlikely to approve a name if it is too similar to that of an existing company; it is considered misleading, too general or pompous; it suggests a royal, national or international connection or it includes certain words such as Co-operative, Insurance, Bank, Financial Services, unless justified by the company’s objects.  These rules are relaxed if the name of the ‘mother’ company is used for the Cyprus subsidiary with the mother company’s approval. It is recommended that more than one name is submitted for approval so as to facilitate approval of a name promptly.

2. SHARE CAPITAL

The Company’s share capital is expressed in  Cyprus pounds and is divided into shares of any value, again expressed in Cyprus pounds, although the share capital may be expressed in Euros, Dollars or other currency. From January 1st 2008 the official value will be expressed in Euro.

Authorized or Nominal Capital is the total capital which the company is allowed to issue to shareholders.

Paid - up Capital is the part of the Authorized Capital which has been issued to, and paid up, the shareholders.

Both the Authorized and paid up Capital of the Company may be increased at any time as provided by the company’s Articles of Association.