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 fifty (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 (7) shareholders.
- It must have at least two (2) 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.