Partnership Limited by Shares :  The law that governs Partnership limited by shares in Cyprus is the Partnership Law, Cap. 116.

Partnership Limited by Shares : Types of Partnership

The General Partnership

Each partner is liable jointly and individually for amount of debts which are unlimited, unlike the Limited Partnership.  Partners of a General Partnership are taxed individually by the Tax Office. A General Partnership can be collapsed by any Partner at short notice. So this type of legal entity is not much preferred by investors. Partners do not have to be physical persons but can also be legal entities, i.e. Limited liability Companies

The Limited Partnership

In this case it is required for one partners to have at least unlimited liability for he Partnership`s liabilities with the remaining partners having limited liability, and the same applies as above with limited liability companies being able to be partners in this structure as well. The limited partners have only liability towards any creditors up to the amount of their share in the capital of the Partnership. As traders and other businessmen are very reluctant to deal with a limited Partnership and Bankers are also very cautious with this type of legal entity it is also not very high in the preferences of the investors.

Partnership Limited by Shares:

Characteristics and limitations: Unlike companies limited by shares, a partnership limited by shares has no legal personality of its own per Article 47 of the law. Partnerships limited by shares are more tax transparent, which in turn is used as a tool, vehicle for different structures to be in this form, such as alternative investment funds. Per Article 3, a partnership cannot consist of more than 10 persons (including companies/associations) for conducting business operations unless it is legally registered a legal entity, meaning a Company per Cyprus Companies Law. As mentioned above, Partnerships limited by shares do not necessarily exclude the inclusion of Companies limited by shares in the overall structure.



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