company
Amending Law 4 of 2015 introduced important innovations to Cyprus Companies Law (Cap. 113) (the “Law”). These innovations are aimed at simplifying processes and increasing competitiveness. The amendments came into effect from the 19th of June 2015. Following the amendments, it is now possible for a company to be incorporated as a general commercial company…
1. Introduction The questions below are intended to help shareholders identify and, if relevant, negotiate certain (indicative only) matters regarding regulation of a Cyprus company. The questions are aimed at providing a starting point for discussions between the owners regarding the establishment of a management structure of a Cyprus company. Note that not all the…
1. Introduction Cyprus Company Law is based on the principle of the majority rule. Consequently Cyprus courts will not generally interfere in the internal management of companies. However, in cases where shareholders become oppressed by the controlling or majority shareholders or even the board of a Company, minority or oppressed shareholders can seek redress and…
A shareholders’ agreement is a confidential legal document between the shareholders of a company. As such the agreement it is not accessible to third parties unless disclosed. The agreement ensures that a mutual understanding exists between the shareholders’ by explicitly providing the agreed terms for the management and control of the company. Moreover, shareholders agreements…
Cyprus courts have jurisdiction to grant interim orders and injunctions over various issues, having extraterritorial effect. These include freezing orders (“Mareva Injunctions”), discovery and tracing orders (“Norwich Pharmacal Orders”), Garnishee Orders (“Chabra Orders”), search orders (“Anton Piller Orders”). Freezing Orders (Mareva Injunctions) Freezing injunctions over assets in any part of the world can be issued…
Disputes in Cyprus are mainly resolved in litigation proceedings by the courts. Provided all statutory and case law requirements are met, Cyprus courts have jurisdiction to grant interim orders and injunctions, with international effect. In particular they have jurisdiction to issue interim orders in support or in aid of: Judicial proceedings pending before Cyprus Courts;…
Cyprus has entered into almost 50 double-tax treaties, most of which follow the OECD Model Convention. The following countries are among those which have double-tax treaties with Cyprus: Azerbaijan Armenia Austria Belarus Belgium Bulgaria Canada China CIS (ex-USSR) Czech Republic Denmark Egypt Germany France Greece Hungary India Ireland Italy Kuwait Kyrgyzstan Lebanon Moldova Malta Mauritius…
Insolvency: Liquidation of a Cyprus Company The legislation and procedure relating to winding up of legal entities is set out in the Companies Law, Cap.113 (the “Law”). Under section 203 of the Law the two main types of winding up procedure are voluntary liquidation and liquidation by the court. A. Voluntary Liquidation A Cyprus company…
Cyprus has one of the most favourable double tax treaties with India for the avoidance of double taxation and the prevention of fiscal evasion. The tax treaty offers benefits such as exemption from capital gains tax. As a result of the benefits offered, an ever increasing proportion of investment into India has been channelled through…
Cyprus is a member of the European Union and is situated in the Eastern Mediterranean, lying at the hub of three continents and close to the busy trade routes linking Western Europe with the Middle East, Africa and the Far East. The legal system is based on the English common law. The national currency is the…