How much is the share capital in a cyprus company

How much is the share capital in a Cyprus company

What is share capital?

At the time of the company’s registration, the shareholders make monetary contributions to the company, at the time of its registration. This is the share capital.

Legally, there are no requirements in regard to the minimum or maximum share capital contribution of a company. Although, it is recommended that companies have a minimum of €1.000. As a result, they can then be divided into 1000 shares, meaning €1 per share.

Having said this, a public limited company (PLC) must have a minimum share capital of €25,630.

Clients should note that a 0.6% fee on the amount of the authorized share capital can be paid to the Registrar.

share capital in Cyprus company
Share capital in cyprus

Shareholders

A private limited liability company is obliged to have no less than 1 shareholder, and no more than 50. In a public company, the minimum is 7. There are no restrictions on what nationality these shareholders are and legal and physical workers can be shareholders too.

Shares can be held in a Trust in Cyprus. To get more information about how to set up a Trust in Cyprus and how we, at MariCorp can help you, contact us!

All registered Cyprus companies are obliged to pay an annual levy to the Registrar of €350.00.

In the case of a company being a group of companies, the total amount paid to the Registrar does not exceed €20.000.

Changes to share capital

Provided that certain conditions are met, a Cyprus company can change their share capital however they want.

A Cyprus company can;

  1. Create new shares, to increase share capital
  2. Divide its share capital into shares of larger amounts.
  3. Convert stock into paid-up shares, or vice versa.
  4. Sub-divide shares into smaller shares
  5. Cancel shares that have not been taken up. However, it is important to note that cancelling shares is not viewed as a reduction of share capital.

What is the procedure for increasing share capital in a Cyprus company?

Provided that an increase in share capital is authorized by the articles, the shareholders will have to pass a resolution. The decision is voted on by the members who are entitled to vote, either in person or via the internet.

The increase of Share capital is effective as soon as the resolution is passed.

Within 15 days a certified extract of the resolution by the shareholders has to be filed to the Registrar of companies, as well as a payment of applicable capital duty, which is dependent on the increase.

share capital in Cyprus company
share capital in Cyprus company

What is the procedure for reducing Share capital in a Cyprus company?

Similarly stated above, as long as the articles of the company allow for a reduction, only then can share capital be reduced. The shareholders have to produce a resolution that has to be approved by the courts. There is an application that needs to be filled out in order for the company to obtain the necessary order.

If the request is successful, a copy of both the court order and the resolution by the shareholders should be submitted to the Registrar of companies.

The reduction is effective on the date of registration by the Registrar of companies.

MARICORP will always incorporate companies with €5,000 authorized share capital and only issue €1,000. This way, if more shares need to be issues in the future, it can be done immediately.

Feel free to visit our website and view the services we can provide you with, to guide you along your corporate journey. Or Contact us and we will get in touch!

Cyprus Company FAQ

How does MariCorp approach share capital?

MARICORP will always incorporate companies with €5,000 authorized share capital and only issue €1,000.

This way, if more shares need to be issues in the future, it can be done immediately.

What changes can be made to share capital?

Provided, most importantly, that certain conditions are met, a Cyprus company can change their share capital however they want.

A Cyprus company can;

    1. Create new shares, to increase share capital
    2. Divide its share capital into shares of larger amounts.
    3. Convert stock into paid-up shares, or vice versa.
    4. Sub-divide shares into smaller shares
    5. Cancel the shares that have not been taken up. On the other hand, it is important to note that cancelling shares is most certainly not viewed as a reduction of share capital.

What is share capital?

The share capital is the monetary contributions made by the shareholders/founders of a company, at the time of registration.

What do shareholders have to do with Capital shares?

To clarify, a private limited liability company is obliged to have no less than 1 shareholder, and no more than 50.

In a public company, the minimum is 7.

There are no restrictions on what nationality these shareholders are and legal and physical workers can be shareholders too.

What are the obligations of a registered Cyprus company?

All registered Cyprus companies are obliged to pay an annual levy to the Registrar of €350.00.

In the case of a company being a group of companies, the total amount paid to the Registrar does not exceed €20.000.

Contact us

Where to find us:

81, Griva Digeni Avenue, MARINOS Court, 3rd floor, office 301

P.O. BOx  42656, P.C. 6501, 6043

Larnaca – Cyprus

Tel: +357 24663402 , Fax: +357 24663409

E-mail: admin@cyprusconsultancy.com


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