September 18, 2011, 3:03 am
Joint Stock Companies in Cyprus are public companies limited by shares (PLC). As a matter of fact, any company without the restrictions applicable to private companies limited by shares is a public company. A PLC has access to capital markets and may sell its shares to the public, as well as being listed on the Cyprus Stock Exchange.
The minimum share capital for establishing a joint stock company in Cyprus is 15,000 CYP or the equivalent of approx. 25,000 EUR. The amount is divided into shares, which can be transferred for free, as a general feature of the PLC.
A joint stock company in Cyprus must have at least seven shareholders, no matter their residency. Once the shares held are paid for, they have no liability. However, there is no restriction as far as the number of members in a Cypriot PLC is regarded.
At least two directors have to form the Board of Directors in a joint stock company in Cyprus. There is no maximum number of directors and no restrictions in terms of nationality. It is mandatory for all Cypriot PLCs to have a company secretary appointed by the directors. They can be corporate bodies or individuals, no matter their nationality, but with Cypriot residency. The secretary has the power to call the meeting of the Board of Directors.
Joint stock companies in Cyprus are under a strict control by the Registrar of Companies. As mentioned in the Companies Law, public companies limited by shares must appoint a qualified accountant with the role of auditor. A Cypriot PLC is required to keep record of accounts and submit balance sheets, profit and loss statements annually. These documents must be audited by the auditor who must prepare a report regarding the data accuracy. Books and records are made available to the Central Bank of Cyprus for any type of inspection.
Any joint stock company must have a registered office in Cyprus. Moreover, the company’s name has to be approved by the Registrar of Companies. It is necessary to register the name, address and nationality of at least two shareholders, as well as the amount of stock they own. Also, some or all the directors must provide their personal information.