When opening a business in Cyprus it is important to know that, according to the rules and regulations provided by the Cypriot legislation, the company can change its business structure if, of course, several conditions are met. It is recommended to change the business structure of the company when its current legal statute limits the development of the business. Foreign and local entrepreneurs who are interested in changing the legal entity under which their business is carried out can receive assistance of the matter from our team of Cypriot company formation specialists.
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Changing a sole proprietorship into a Cypriot limited liability company
Although most of the businesses incorporated in Cyprus do not require changing their legal entities, the procedure is still applicable in several cases. One of the most common legal entity changes refers to the sole proprietorship, which is usually re-registered as a limited liability company. A sole proprietorship is the simplest type of business in Cyprus, as it is incorporated by a natural person, who will carry out various business activities in his or her own name (and who is personally responsible for the liabilities of the company).
The change is recommended when the business is developed and requires a more representative regulatory framework. Choosing a limited liability company (LLC) provides protection for the shareholder, as he or she will be responsible for the company’s debts only in extent to the shares owned in the business; our team of Cypriot company formation agentscan provide more information on the advantages of a LLC in Cyprus.
How to change a legal structure in Cyprus
In order to change a legal entity with another one, the investor will have to de-register the current entity and to register it again, under the new structure. Companies in Cyprus are registered at the Registrar of Companies and any other changes that may occur during the lifetime of the business will have to be reported at this institution.
Persons who need further information on the changes available for legal structures in Cyprus can contact our team of Cyprus company formation representatives.