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.