Legal Framework

There are many reasons why companies are seeking to merge their businesses. These can include the need in combining resources, area of expertise, practice, and experience as well as the need in enhancing employees’ talent and/or diversifying and concentrating managers’ qualifications of two or more companies which may be brought together to open new opportunities to businesses and facilitate their expansion.

In deciding upon such significant matters you must be successfully represented throughout the process and your goals achieved efficiently and in a time-effective manner with minimum disruption to your business through the process.

Thus in an acquisition process when your company is bought out by another entity you may still carry on a subsidiary of the purchased company that is not something you wish currently to undertake. In such a case you can also effectively transfer the business and assets to the purchasing company.

Equally, whether you represent a business buyer or seller we are happy to assist and provide you with efficient and smooth business transmission and/or business purchase support to achieve the best possible return on your investment.

Mergers and acquisitions in Cyprus are governed by the Companies Law CAP 113 (the “Law”), which lays down rules on domestic, and cross-border mergers, divisions, transfer of assets and exchange of shares procedures between two or more companies.

The Law was harmonized with the relevant EU legislation, and specifically with Directive 2005/56/EC of the European Parliament and of the Council of 26 October 2005 that reflects EU relative legal requirements and standards concerning cross-border mergers respectively.

It is worthy to note that public mergers have slightly different procedure from the procedures relevant to limited liabilities companies in Cyprus. For more information on this topic please contact us at:

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