Corporate and Commercial


Corporate and Commercial

You can invest in Cyprus in the following ways:

  • As an individual;
  • Through a company;
  • Through a trust;
  • Through a limited or unlimited partnership; or
  • A combination of the above.

There is no generally accepted definition of a joint venture in the law. A joint venture is a term describing a relationship between two or more parties who invest together in a business endeavor. The joint venture can take various forms, the most common of which are the following:

  • A contractual joint venture. Under a contractual joint venture, the parties are bound together by contract without creating or a formal limited or unlimited partnership. The advantage of this form is independence, cheapness and simplicity. The disadvantages of a contractual joint venture are taxation, unlimited liability and possible uncertainty (due to the absence of a legal code to regulate certain aspects of the venture).


  • A partnership joint venture. This has the advantage that there is certainty on provisions of partnership law, and in limited liability partnership joint ventures, the partners can have an unlimited liability partner while the others have limited liability. The disadvantages of this are tax, difficulty in organizing an exit strategy and difficulties in raising finance.


  • A corporate joint venture. In a corporate joint venture, the parties form a new company to conduct the business. They enter in a shareholders’ agreement and may modify or use modified articles of association (the company’s constitutional document) to reflect their agreement. The advantages of a corporate joint venture are certainty, limited liability, tax and versatility (e.g. by using different classes of shares). The disadvantages are the formal requirements (some of them being rigid) and the statutory obligations for filing annual reports, audited accounts, paying the annual companies registrar levy.

The investment in a Cypriot business is one of the qualifying investment areas. For more details on the citizenship by investment see our guide.

Yes, Cyprus has an extensive network of treaties on the avoidance of double taxation.

This depends on your goals. A Cyprus International Trust is typically used in estate and international tax planning and asset protection. A company is typically used to conduct business or to accumulate the dividends from businesses abroad. Sometimes both may be used.

A shareholders’ agreement will regulate the relationship between the shareholders. It may provide for different rules than the default rules in the law, such as both shareholders approving significant transactions, each shareholder having the right to appoint a director on the board. On many occasions the articles of association of the company may also have to change but this depends on each specific case.

Banks need to establish the personal and economic profile of the beneficiary of a company or the person opening a personal account or being the beneficiary in a client’s account. They need to consider the information in order to verify that the money being brought to Cyprus do not derive from illegal activities. For more information, you can request to send you our banking guide.

Yes, we can offer, or recommend a third party if you would prefer, to offer accounting and VAT services and direct you to independent professionals for the accounting and auditing services required.

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