Cyprus is currently one of the best EU locations in which to invest. Property investments are doing superb, especially for hi-end properties in popular tourist regions like Limassol and other programs like the Cyprus Investment Program together with registering your company in Cyprus gives you plenty of great benefits like Cyprus citizenship and incredibly low taxes.
When you are planning on investing in a company or in real estate in Cyprus but don’t have the money to buy the whole company or property all on your own then a limited liability company is your best option. This type of business is a private company where owners are only legally responsible for debts that extend to the amount of capital they invest and not for the entire business or property.
Basically, this means that you are only responsible for parts of the debt payment and thus cannot be held accountable for the debt of the entire business or property. Limited liability company registration in Cyprus protects you as a partial investor.
Here are a few tips to help you register your limited company so you and your investments will enjoy the maximum protection and the best possible result from your investment.
What are your limitations in a Cyprus limited company?
These companies are usually restricted by its assets and the company directors don’t have access to your capital contribution without your consent. Therefore your investment is a lot safer.
You need a certain number of members
Public limited companies must have at least 7 members up to an infinite number of members to qualify for registration where private companies can be owed by 1 to 50 members. You will thus need at least 7 partners to register a limited liability company in Cyprus.
How a limited liability company is established?
There are several steps involved in establishing a limited liability company like the following;
- The Registrar must first approve the companies chosen name
- The company is then established by filing forms to the Cyprus Registrar of Companies
- The companies’ memorandum and articles of association must also be filed
- Your company must do an application for a public limited company
- A statement in lieu of prospectus must be completed
What type of assets can you contribute to a limited company?
When you are registering as a member of the limited company you can either contribute cash or assets with a nominal value to the company. In most cases, it is best to contribute cash when you are registering for a limited company.
The threshold of shares must be solved
Different partners cannot be expected to contribute the same capital amount and for that reason, the shares of the business will be divided according to the amount of capital given.
A board of directors needs to be established
All decisions within the business must be done by the board of directors. For this reason, your company will have to create a board of directors upon registration.
Registering a limited company in Cyprus isn’t an easy task and it is always best to get a professional attorney to help you with all of the fine print and especially with the final agreement. This is, however, one of the best ways to become an entrepreneur and to profit from the Cyprus economy.
