The Partnerships and Business Names Law, Cap. 116, has been amended by Law 144(I)/2015 and published in the Official Gazette of Cyprus, hereinafter, as amended, “Cap. 116”. The amending statute introduces the partnership limited by shares (“Limited Liability Partnership” or “LLP”), being the Cyprus equivalent of a Luxembourg SCSp. The amending statute has also introduced a change over the maximum number of persons that can be partners in any type of partnership, which is now increased to one hundred.
The LLP, being a form of partnership widely used in other jurisdictions, such as Poland and Luxembourg, has finally been introduced into Cypriot law, and is expected to facilitate an increase in the use of Partnerships for investments and commercial transactions, particularly by Polish Closed End Fund structures.
The partners holding shares in an LLP (“Limited Liability Partners”), can be legal persons or natural persons, and enjoy limited liability in the same manner as shareholders enjoy limited liability in a limited company. However, a Limited Liability Partner cannot take part in the management and the operations of the LLP, nor can a Limited Liability Partner be authorized to bind the LLP.
In light of the above, an LLP shall consist of:
The following is a brief summary the new LLP regime:
Please feel free to liaise with either Charles Savva at firstname.lastname@example.org (Managing Director, Savva & Associates), or Soulla Dionysiou at email@example.com (Head of Legal, Pieri & Partners Law) for further information regarding the new Limited Liability Partnership.