Newsletter No.4 – January 2019

Current and upcoming changes in Cyprus Company Law

In its continuing effort to upgrade its business legal framework so as to become more attractive as a business destination and improve its competitive advantage as an international financial centre, Cyprus is currently under a process of performing amendments in its Company Law legal framework. To this end, on the 18 December 2018, a series of amending laws and regulations were published targeting at introducing several amendments to the Cyprus Companies laws and procedures.

These amending laws and regulations are an important legislative reform that is being promoted within the framework of the modernisation and reorganisation of the Registrar of Companies and Official Receiver. The Registrar of Companies states in a relevant announcement issued on the 19 December 2018 that this will be achieved primarily through the redesign of forms with an aim to simplify the procedures regarding companies and other entities under the regulation of the Registrar of Companies.

Despite of the fact that the amending laws and regulations have been published, it must be noted that the effectiveness of several amendments is postponed to be effected at a later stage. For instance, the redesigned forms will be implemented gradually with the necessary modifications to the information systems of the Registrar of Companies.

Important changes now in force

Some of the most important changes that came into force with the publication of the amending laws and regulations are the following:

-          Abolition of the 0.6% variable registration fee and fee for the increase in the company's share capital.

-          A company may only have one secretary appointed at any time and may not appoint more than one secretary, neither it may appoint joint secretaries.

-          Abolition of the obligation to attach a contract in case of allotment of shares in a private company for which payment is made wither partly or wholly in kind (HE12).

Our services

Our law firm E. TZIONI & ASSOCIATES LLC, may offer the following services:

-          Formation of Cyprus companies

-          Fiduciary services including company administration, registered office services, nominee directorship, nominee shareholder and secretarial services

-          Corporate organisation and management, complying with all legal and tax requirements including employment law matters

-          AMLTF Compliance

-          Re-domiciliation of companies into or out of Cyprus

-          Corporate procedures such as capital increase/decrease, transfer of shares, differentiation of share rights, raise of financing etc.

-          Set Up of Partnerships, including limited partnerships

-          Registration of Business Names

-          Set Up of Non-Profit Organisations such as companies limited by guarantee, associations and foundations

For more information please contact Mrs Eleni Tzioni at eleni@tzionilaw.com.cy and on +357 22932293.

The above material has been prepared with the intention of being a general guide only, and its application to specific situations will depend on the particular circumstances involved. Accordingly, we recommend that readers seek appropriate professional advice regarding any particular problems that they encounter. This information should not be relied upon as a substitute for such advice. While all reasonable attempts have been made to ensure that the information contained herein is accurate, E. Tzioni & Associates LLC accept no responsibility for any errors or omissions it may contain whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person that relies upon it.

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