The Partnership Structure in Cyprus
A partnership is a single business that is managed by two or more people (maximum 20) sharing common ownership and control with the aim of making profit. This business structure under Cyprus law, is not perceived as a legal person, hence there is no distinction between the business and the partners who undertake all rights and obligations of their business (profits, losses, assets and liabilities).
Partnerships are running under Cyprus Partnership and Business Names Law, Chapter 116 and the partners have the option to use a trade name for their partnership by obtaining a trade name approval from the Registrar of Companies and Official Receiver, in accordance with the relevant law.
It is critical for success of the partnership to compose a partnership agreement what will specify the decision making process, how the partners will resolve future disputes, divide profits, allocate responsibilities between them and change the ownership structure.
The process of registering a partnership in the Republic of Cyprus is simple and consists of the following steps:
- Obtain a name approval for the partnership from the Registrar of Companies and Official Receiver
- Compose the partnership agreement
- Submit the partnership’s registration form to the Registrar of Companies and Official Receiver
- Pay the registration fees
The pink slip should be obtained before filing the partnership registration application to the Registrar of Companies and Official Receiver.
Once the partnership has been registered, the partners have a duty to inform the Registrar of Companies and Official Receiver for any changes in the structure of the partnership.
1. General Partnership