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.


    • Simple structure
    • Segregation of duties and responsibilities
    • Complementary skills
    • Partnership incentives for employees
    • No statutory audit is required (if your turnover does not exceed €70,000 p.a.)
    • Low tax expense (in case the total personal taxable income of each partner is within the region of €60,000 p.a.)


    • Personal responsibility over liabilities
    • Personal assets at risk in case of a claim
    • Undertaking responsibility for the actions of partners
    • Unresolved partner disputes can lead to dissolution of the partnership
    • Sharing Profits
    • A retired or deceased partner can lead to the immediate dissolution of the partnership
    • Partners are obliged to register as self-employed and pay quarterly contributions to social insurances
    • Higher tax expense (in case profits higher than €60,000 p.a. per partner)
    • Prone to tax investigations and capital statements

    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
    Non-European partners are obliged to apply for residence and work permits (pink slip) to the Department of Immigration, in case they are planning to work in the Republic of Cyprus. Residence and work permits are usually issued for an initial period of two years but can be extended depending on the conduct of the business. Non-European partners working in Cyprus will use their ‘Alien Registration Number’ to register to Income Tax and the Department of Social Insurances, whereas European Partners should register using their yellow slip number.

    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

    In a general partnership, all partners assume personal responsibility for the partnership's liabilities.
    2. Limited Partnership
    In a limited partnership there are two kind of partners. The general partners who undertake personal responsibility over the partnership’s liabilities (as in general partnership) and the limited partners who usually provide capital to the partnership in cash or in kind, and they are liable for the partnership’s liabilities up to their capital contribution. In addition, the decision making of the partnership is carried out excusively by the general partners and therefore the limited partners are acting as investors. 
    Limited partnerships are usually avoided due to their administrative complexities.
    3. Joint Venture
    A joint venture is a written agreement between individuals carrying out a business with the aim of making profit in relation to a specific project or for a limited period of time.