Types of companies
Last Updated on Sunday, 10 January 2010 17:18
There are two categories of companies
- Companies limited by shares; meaning that the liability of its shareholders is limited by the memorandum to the amount unpaid on the shares held by each shareholder.
- Companies limited by guarantee; meaning that the liability of its members is limited by the memoruandum to the amount each member undertakes to contribute to the company's assets in the event of its winding-up.
- Private Companies; may have a suffix of Limited or Ltd
- Public Companies (can raise capital through the issue of shares and invite the public to subscribe through the issue of a prospectus, includes companies listed on the Cyprus Stock Exchange) they have a suffix of Public Company Limited, Public Company Ltd, Public Co., Public Co. Ltd, Plc, Public Limited., Public Ltd.
- Total assets €3,417,202
- Net turnover €7,005,265
- Average number of employees 50
Small sized private companies are not required to produce consolidated financial reports.
Exempt Private Companies were exempted from certain reporting requirements under sec 121 of the law. Exempt Private Companies were covered formerly under sec 123 of the law, this section has now been withdrawn, with the effect that there are no Exempt Private Companies.
Private Companies
Private Companies
- have certain restrictions on the transfer of their shares, such as pre-emptive rights issues and the transfer of warrants.
- can only have 1-50 members (not including members who are employed, or previously employed within the company).
- are prohibited from inviting the public to subscribe to the shares or the debentures of the company.
Recent changes in the law now allow the sole shareholder in a company to also occupy the office of director and secretary.
Characterstics
- Minimum number of members - 1
- Maximum number of members - 50 (excluding current and former employees)
- Minimum share capital - None
- Restrictions in share transfer rights - Allowed if included in the articles
- Restriction to public invitation for subscrtiion - Must be prohibited by articles
- Minimum Directors - 1 (no limitation to appointment)
- Requirement for consolidated accounts - Yes but only if not a small sized private company
- Requirement for audited accounts - always for income tax purposes, and yes for corporation tax if a large company
- No trading certificate required
Public Companies
The law defines a public company as "a company which is not a private company".
Characterstics
- Minimum number of members - 7
- Maximum number of members - No upper limit
- Minimum share capital - €25,629
- Restrictions in share transfer rights - None
- Restriction to public invitation for subscrtiion - None
- Minimum Directors - 1 (must notify in writing the Registrar to show their consent for the appointment)
- Requirement for consolidated accounts - Yes
- Requirement for audited accounts - always for income tax purposes, and yes for corporation tax if a large company
- Trading Certificate Required
The Trading Certificate The trading certificate will be issued for a public company in order to do business by the Registrar of Companies and Official Receiver if it is satisfied that a statutory declaration has been received showing
- The authorised capital is not below €25,629
- The amount of the paid up share capital
- An estimate of the preliminary expenses, the expenses already paid for the obligations undertaken
- Estimate of the expenses for e.g. advocates and accountants fees, expenses already paid in this respect and relevant obligations undertaken
- A bank certificate verifying the company's account credited with at least €25,629
