The main organisational forms used for non-profit / volunteer organisations in Cyprus are:
- foundations/institutions, and
- non-profit companies.
In certain cases and upon satisfying specific criteria, tax exemption may be obtained.
Associations/Societies and Foundations/Institutions, as organisational forms, are now governed by the Law on Associations and Foundations and other Related Matters Law of 2017 (Law 104(I)/2017).
Law 104(I)/2017 defines an association/society of at least twenty persons which has a non-profit making purpose and excludes political parties and trade unions.
According to Law 104(I)/2017, a foundation is the total set of a property intended for a specific non-profit purpose and for its establishment the value of the property is not less than EUR 1,000 (EUR 1,000).
Non-profit companies are established and registered under the Companies Law/Cap 113.
Not for profit companies are defined as associations which are formed as a company and which have as a purpose to promote commerce, art, science, religion, charity, etc. Not for profit companies apply their profits, if any, or income for the promotion of their purposes/objectives and do not distribute any surpluses to their members.
They are subject to the same requirements as for-profit companies with respect to reporting requirements.
How can we help?
The rules, procedures and obligations which govern non-profit organisations depend on the type of entity used.
We can provide advice on the the types of entitles used for non-profit organisations in Cyprus and assist you to determine the most suitable structure for your needs. For worthy charities, benefiting the public in general, we are happy to provide services without charge.
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law.
If you have a query or wish to receive further information, please contact us using [email protected]