Cyprus: Corporate/Commercial Law

A Cyprus share sale changes who owns the company; it does not give the company a clean slate. The contracts, employees, licences, assets and liabilities stay with the same legal entity. So do its tax exposures, defective records, disputes and compliance failures. The buyer acquires the shares and, through them, the economic consequences of the company’s past.

Cyprus has become an increasingly attractive jurisdiction for entrepreneurs, international investors and companies seeking to establish or expand their operations within the European Union.

The European Union has adopted a new regulation on foreign direct investment screening that will take effect in 2028, establishing mandatory minimum standards across all Member States. This marks a significant shift from the previous cooperation-based framework toward harmonized requirements for reviewing foreign investments in sensitive sectors. While the regulation introduces common procedures and expanded scope, national variations in implementation are expected to persist, creating new considerations fo

Two recent European Court judgments clarify when EU sanctions can freeze an unlisted company's funds through ownership or control by a listed person. The Inter Rao Lietuva and Abramovich cases establish different evidentiary standards and challenge routes, requiring businesses to understand the specific legal basis for any payment restriction.

Cyprus is evolving from a jurisdiction that simply attracts fintech licenses to one building genuine European fintech infrastructure. With new regulatory frameworks including PSD3, DORA, and MiCA converging, the country faces a critical question: can it develop the banking relationships, payment systems access, and institutional depth required to transform licensed entities into a truly interconnected financial ecosystem?

In July 2026, the Cyprus Business Development Organisation Law 2026 (Law 124(I)/2026) was enacted, providing for the establishment and operation of the Cyprus Business Development Organisation (the “Organisation”).

During 2025, the Cyprus Government undertook a comprehensive review of the country's tax framework, with reforms approved on 22 December 2025 and effective from 1 January 2026.

The recognition of Cyprus with the Best Global Climb Award Among EU Countries in the 3rd Edition of the StartupBlink Startup Ecosystem Awards, marking the largest improvement among all EU member states isn't just a symbolic win; it reflects genuine transformation.

Alternative Investment Funds (AIFs) are emerging in the rapidly evolving world of global finance.

It is not uncommon for high-value commercial disputes to give rise to jurisdictional issues, particularly where they involve multiple defendants domiciled in different jurisdictions or where one or more parties have entered into agreements containing jurisdiction clauses. The reason is straightforward: if the Court determines that it lacks jurisdiction to hear the matter, the proceedings may effectively come to an end at the outset. Accordingly, the issue of jurisdiction must be determined by the Court as a preliminary matter and at the earliest stage of proceedings.

Comprehensive Overview of the Key Economic Trends and Developments Reported Across Cyprus This Week

If you plan to run a business from Cyprus, you will need to arrange both the company’s registration and your own right to live and work here. The Companies of Foreign Interests procedure allows qualifying businesses to employ third-country nationals, including owners who work in their own company.