A Limited Company can be Private or Public

Limited Liability Company means:

  • is legally separate from the people who own it
  • it has separate finances from its owners
  • has shares and shareholders
  • can keep any profits it makes after paying tax
  • it is managed by a Board of Directors
  • it has a ‘memorandum of association’ – a legal statement signed by founding shareholders of the company which contains the objects for which the company is formed
  • it has ‘articles of association’ which are the written rules about managing the company.

Private limited company

  • The most popular business vehicle used in Cyprus.
  • Restricts the right of transfer of its shares.
  • Restricts the number of its shareholders to 50
  • Forbids any invitation to the public for subscription to its shares.
  • There is no minimum share capital requirements.
  • It can be a single – shareholder Company, in which case the sole director and secretary can be the same person.

Public limited company

  • It must have least seven shareholders.
  • It must have at least two directors.
  • There is a minimum capital requirement of EUR 25,629.
  • It has the ability to invite public subscription to its shares.
  • Its shares are freely transferable shares.