A Concise Legislation That Regulates the Incorporation and Operation of all Types of Cyprus Company
Sources of Cyprus Company Law: The Cyprus Company Law is an extensive legislation of Cyprus which regulates and governs the incorporation of companies, their operation according to its provisions and compliance to the provisions of the act of all the owners of a Cyprus Company. Its provisions are quite voluminous and complex, so an expert opinion is always needed from businessmen intending to incorporate a company in Cyprus.
Sources of the Cyprus Company Law
The Cyprus Company Law has its sources in the British Companies Act 1862, which was replaced by the Companies Act 1947, which in turn was replaced by the Companies Act 1948. In Cyprus the Companies Law, Cap 113 was enacted in 1951 and it is a verbatim reproduction of the British Companies Act 1948. The history of companies unfolds back into the mists of Roman times, and involved groups of people forming associations to run a common business! The early notion of a Corporation was a kind of company, which meant an entity that had completely separate legal liabilities from the physical persons who joined in to form the corporation. Company Law as we know it did not exist and companies according to the prevailing law then could only be established by a Royal Charter, or an Act of Parliament. It was only until 1856 that the first Company law legislation, was passed in England allowing individuals to form a corporation with a simple act of registration of limited liability.
In England there were strict laws about punishing debtors who could be imprisoned in underground wet dungeons to die of disease or even put to death directly.So businessmen were disparately looking for a way, out to save their “pound of flesh” if you read Shakespeare! The idea of the “Limited Liability” corporation then became the only viable practicable solution to save the skin of any businessman going bankrupt! So what in reality is the notion of Limited Liability Corporation it is a trick to cheat the severe laws of owing money which they could not pay! The world`s first modern company law allowing limited liability companies was enacted by the state of New York in 1811. The British took a while to take in this new revolutionary idea, but is 1844 they enacted the Joint Stock Companies Act, although investing in such Company did carry unlimited liability until a new company law was enacted a few years later, the Limited Liability Act 1855. This Company law however allowed companies of limited liability to be formed by at least 25 people!
Now a single person, according to the Cyprus Company Law, can incorporate a Cyprus Company! The Cyprus Company Law is statute law which is an extensive legislation providing a wealth of legal rules for the incorporation of a Cyprus Company its management, its administration, its maintenance etc. A plurality of court decisions too, sets a prodigious stock of precedents construing the provisions of the Cyprus Company Law.
Below you can see the full text and read the Cyprus Company Law for yourselves. It is updated and embodies all the latest changes and new legislation.