Adjusting share capital is a key step for many companies in Cyprus as they grow, attract new investors, or refine their ownership structure. For private limited companies, a capital increase is more than a financial move — it's a legal process governed by the Cyprus Companies Law, Cap. 113.
Why Increase Share Capital?
A company's share capital reflects its ownership structure and financial base. Increasing this capital is often essential for expansion, onboarding new shareholders, or rebalancing internal equity. However, the process must be handled with care, as it involves both strategic and legal considerations.
Before any increase can occur, the company's Articles of Association must allow for it. The shareholders must approve the change via a resolution (ordinary or special), depending on the company's constitutional documents. Details such as the number of shares, share class, and issue price (whether at par value or with premium) should be clearly specified.
Following approval, a statutory form (usually HE14) must be submitted to the Cyprus Registrar of Companies. Once registered, the increase becomes legally effective. It's also important for shareholders to understand the impact on their holdings — including any dilution — if they choose not to participate in the new share issue.
This process is widely used: growing businesses might raise capital to scale operations, while others may simply be formalising new partnerships. Whatever the case, proper legal handling is critical to ensure compliance and protect all stakeholders.
Eurofast's Take
At Eurofast, we specialise in helping companies execute capital increases smoothly and in full compliance with Cyprus law. From legal review and resolution drafting to filing and follow-up, our corporate experts guide you every step of the way — so you can focus on what matters: growing your business with confidence.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
