Legal Framework for International BusinessCompanies
International businesses can register in Cyprus as limited companies.
Limited companies are companies with share capital, and the liability of their shareholders incase of winding up, is limited to the nominal value of the shares they hold. The letter "LTD",which stands for "Limited", appears at the end of their name - for example "Aliera LTD". Limited companies can be owned by a small number of investors in which case they are"private" or their shares can be registered on the stock exchange and therefore available to the public, i.e. "public companies".
A private limited company
A private limited company means a company which by its Articles:
Prohibits an invitation to the public to subscribe for its shares or debentures.
Limits the number of its member to 50.
Restricts the right to transfer its shares and prohibits the issue of bearer shares.
Liability of shareholders
The liability of the members of an International business company is limited to the nominalvalue of the shares they own.
Memorandum and Articles of Association
A memorandum and articles of association must be drafted and printed.The memorandum defines the company's powers, particularly regarding it's dealings with it'sexternal environment.The articles of association set out the rules governing the company's internal affairs, such asmeetings and voting rights.
Income and place of activities
The income of the company can be derived from Cyprus or anywhere in the world. However, themanagement, control and administration of the company has to be from Cyprus.
Registrar of Companies requirements
Statutory documents regarding the following matters must be filed at the Registra's office and areavailable for public inspection:
Audited Financial Statements