Cyprus International Business Companies

The Companies Law in Cyprus is based on the English Companies Act of 1948. Cyprus International Business Company is in effect Cyprus registered entity owned by foreigner. Non-residents who wish to register a Cyprus International Business Company can do so without restrictions and no longer require approval from the Central Bank of Cyprus.

Why a Cyprus International Business Company?

The decision the register your own company will vary, depending on the needs and requirements of the business and yourself. The following are just some of the benefits:

1. Limited liability

As apposed to a sole proprietor or partnership you are not liable for the debts incurred by the company. In the case of a sole proprietor or partnership creditors will claim against your personal assets in the event of a claim whereas in the case of a company the creditor cannot move to seize your personal assets to satisfy a claim or a judgment against the company.

You should be aware however that in dealing with banks for example personal guarantees may be requested from the shareholders/directors which will then negate this particular advantage if you sign personal guarantee.

2. Enduring Structure

A company will continue its existence irrespective what happens to its shareholders. The company continues beyond the death or illness of shareholders.

3. Transfer of ownership Ownership of a Cyprus International Business Company is very easily transferred without disrupting the business through the sale of shares.

The limited Company is a legal entity distinct from its shareholders.