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Company Formation ,Cyprus Company

Types of Cyprus companies.

A Cyprus company benefits business people who want to start a company in various ways. There are different types of Cyprus companies with special characteristics that serve special purposes. If you are a business person, interested in starting a company in Cyprus wishing to operate locally or internationally, you should have a good picture of the structure, the characteristics and how the company can serve your business model and operations. The most common type of Cyprus Company is the limited liability company (LTD) and can be a public or private company.


Limited liability company (Privately held)

In the usual Limited Liability Company form the founding members have responsibilities corresponding to the amount of share capital they hold according to the registration documents. The private limited liability company must have at least one (1) up to 50 shareholders. Persons who are or were previously in the membership list are excluded. A limited liability company with shares is the most common form of company and cannot offer its shares for purchase to the public.


Public Limited Liability Company.

The Public Limited Liability Company has a share capital and the liability of its members corresponds to the amount of capital they hold according to the registration documents. A public limited company can offer its shares for purchase to the public and can be listed in the stock exchange. The number of members of a public company must be at least seven (7). The minimum capital of a public company, for a valid registration, must be at least € 25,629.


Limited liability company with guarantee without share capital.

This type of Cyprus company has no share capital, so neither shareholders nor its members act as guarantors. The liability of its members is limited according to the founding documents to the level that the founding members have undertaken respectively to contribute to the assets of the company in case of its dissolution.


Limited liability company with guarantee and share capital.

This Cyprus company type has a share capital and the responsibility of its members is based on the share capital they have according to the registration documents but also on the amount that the members have agreed to contribute in the case of dissolution of the company. This type of company can be either privately or publicly held. In the latter case it can offer its shares for purchase to the public.


Variable Capital Investment Company.

This type of Cyprus Company is considered a limited liability company with shares. The main feature is that it’s shares do not have a nominal value, but a floating value. These companies – usually Funds – can be established after obtaining a relevant license from the Cyprus Securities and Exchange Commission (CCP) to operate as collective investment undertakings.

The Variable Capital Investment Company can take the form of either a private or public company, depending on the type of the Collective Investment Organization (Investments in securities, Republic investments, Organization with a limited number of persons, Alternative Investment Organization -AIF). In the case is a Private Company, it can have from one (1) member up to fifty (50) members, while in case of a Public Company it must have at least one (1) member. The minimum initial capital depends on the type of Investment Company. Learn more about Funds in Cyprus here.