News and developments
The Most Common Legal Issues in Cyprus
1. Formation of a New Legal Entity (Company
Incorporation)
During the initial stage of setting up a business, it is highly recommended that new Legal Entities obtain legal consultation from an accredited law firm with
experience of business and tax law issues. What happens in the initial stage
will follow the operational life cycle of the company's business development
and corporate obligations.
Therefore, with the assistance of legal consultants:
- The right type of company will be selected and formulated in a favourable jurisdiction, taking into consideration the tax laws and business operations of the chosen jurisdiction.
- The Memorandum and Articles of Association will clearly outline all the general terms of the new entity and will specifically address the conditions regulating the relationship between the involved contracting parties.
- A possible shareholders' agreement will document shareholders' relationships by specifying the responsibilities and rights, meetings, the decision-making process, terms and conditions of a voluntary resolution, shareholders' capital issuance and transfer as well as the necessary mechanism for common disputes that may arise during the company's operations.
- The employment contract will define and clarify the parties' relationships and duties.
- A confidentially agreement will secure the preservation of the new development ideas and concepts of the new entity. Business owners will protect their newly established company via this methodology and by implementing the right procedures and strategies to deal successfully with common uncertainties and misunderstandings that may arise during the firm's business development and operations.