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Due to the historical origin of the Constitution of the Republic of Cyprus, it is considered to be one of the most peculiar in the ‘constitutional world’. It is a ‘granted constitution’ and by that I mean a Constitution that the people of Cyprus had no part in drafting but rather it was imposed on them by the Zurich Agreement.
In addition to its granted and peculiar form, the Constitution of the Republic of Cyprus is also a very complex and rigid Constitution. Janna Fachiridou LLC appears before District Courts on behalf of Local Authorities as also in the Supreme Court in appeals against the legitimacy of decisions of public authorities and administrative organs.
Cyprus Legal System
The Cyprus Legal System is based on the Judicial Precedent and its sources are from the English legal system.
The sources of Civil law:
• The Constitution of the Republic of Cyprus
• The laws
• Subsidiary Legislation
• International Agreements that are confirmed by Cyprus
• the Judicial Precedent
• English Common law
Any disputes are settled through the Court with the filling of a writ most commonly, with the deposit of a writ. Generally all areas of Civil Law (Property Law, Family Law etc) follow the Civil Procedure rules, with slight alterations in every area of course.
Janna Fachiridou LLC can litigate on your behalf in any Court in Cyprus, with professionalism and dedication to provide you with the appropriate remedy to any situation that might occur to you.
The Cyprus Legal System is based on the Judicial Precedent and its sources are from the English legal system.
The sources of Civil law:
• The Constitution of the Republic of Cyprus
• The laws
• Subsidiary Legislation
• International Agreements that are confirmed by Cyprus
• the Judicial Precedent
• English Common law
Any disputes are settled through the Court with the filling of a writ most commonly, with the deposit of a writ. Generally all areas of Civil Law (Property Law, Family Law etc) follow the Civil Procedure rules, with slight alterations in every area of course.
Janna Fachiridou LLC can litigate on your behalf in any Court in Cyprus, with professionalism and dedication to provide you with the appropriate remedy to any situation that might occur to you.
JANNA FACHIRIDOU LLC is a professional law firm which, among others, deals in establishing and administrating companies. We provide the service of forming a company as well as Trusts and Foundations, while providing legal and advisory services on the matters of company law in a professional and friendly environment.
We provide a full service in regard to the company which includes incorporation, maintenance as well as liquidation and litigation on behalf of the company. We can also offer the nominal services of shareholder, director, secretary and registered office to a company.
We have a great deal of experience in dealing with companies in Cyprus and abroad, which has provided us with the right skill set to deal with anything that might occur during the incorporation or operation of the company.
Cyprus International and Domestic Business Companies
The Cyprus Limited Liability Company is a legal entity which is used in the Republic of Cyprus as a tool for corporate transactions as well as part of company structures in international tax forms. Cyprus has entered into almost 50 double-tax treaties, which is quite remarkable for a jurisdiction which has low taxes. Because of the beneficial tax system that Cyprus has, which is among the best and most favorable in Europe, it has succeeded in becoming, in these past decades, one of the most favorable and prosperous European and International Financial Centers.
According to the official statistics by the Department of Registrar of Companies and official Receiver, until the 30/09/2012 there were 264.909 registered companies. The registration pace of companies in Cyprus has exponentially risen during the period 2007-2008, with the number of registered companies in 2007 reaching 29.016, which was more than three times over the average amount of registrations per year for the period 1998-2004. During the period between 2009 until 2012 the average number of registrations was 18.305 companies. The Company Law, Chap. 113 of the Republic of Cyprus Laws, which is mostly based on the English Companies Act of 1948, was originally written in the English language and afterwards was translated in Greek.
From the declaration of Independence of Cyprus in 1960, around 40 amendments have been made to the Law, all of them in Greek language. In Cyprus there are two kinds of companies, Cyprus Resident Company and Cyprus Non-Resident Company. Cyprus resident company means that the control and the management of the company takes place in the Republic of Cyprus, and thus enjoys all the benefits that Cyprus law and treaties have to offer. Cyprus non-resident company, on the other hand, means that its management and control takes place abroad, and thus its non Cyprus income is not taxed, but, as a non resident of Cyprus, the company cannot be benefited from the double treaties Cyprus is part of. The Cyprus resident company is more preferable and the most commonly used due to the beneficial tax system.
Registration of a Company in Cyprus
The procedure for the registration of a Cyprus Legal Entity can be completed within a maximum period of twenty days at the most, and after the registration, the company can commence its business right away. First of all an application to the Registrar of Companies is made for the approval of the name of the company. It is beneficial that on applying for approval of a name, another two alternative names be given all ending with the word limited, as to mitigate any delays that may occur over the name of the company.
Our firm can help you decide on a name that will not be declined by the Registrar of Companies. Once the name of the company is approved the following documents and information must be filed with the Registrar of Companies for registration:
- The Memorandum and Articles of Association.
- Applications with the names and details of the proposed directors and secretary for the company. There are no restrictions as to the number of directors a company can have, but it has to have at least one. Also a sole director cannot be the secretary of the company, except in the case where the sole director is also the only shareholder.
- The address of the company’s registered office, which is where all the documents for the company will be sent.
- And lastly an affidavit or a declaration from a registered lawyer in Cyprus that all the formalities and regulations of the Cyprus Company law have been followed for the registration of the company.
When all these documents are sent to the Registrar of Companies, he will review them and if he is satisfied that everything is in order, he will issue a Certificate of Incorporation, Directors, Shareholders and Registered office. The creation and registration procedures, including printing of all official stationery and opening the necessary bank accounts, can usually be completed within a period of twenty days, at which point the company can start working right away.
Janna Fachiridou LLC can arrange the drafting and completing of all the necessary documents and procedures listed above. We can also offer the nominal services of director, secretary and registered office to the company. We sign a Trust deed and Management Agreement between us, which provide you and your rights that we are going to operate as nominal only in your benefit.
Janna Fachiridou LLC deals with any matter concerning property in Cyprus, specifically it deals with property acquired by foreign and EU citizens, sale and lease agreements, state administration and planning as well as wills, and preparation of all the nessesary documents for these activites, like contracts and Power of Attorneys.
A contract is an agreement creating obligations enforceable by law. For a contract to be valid some basic principles have to be present, which are, an agreement (offer and acceptance), intention to create legal relations, be in a written form (most of the time but not compulsory in some situations), consideration, mental capacity to form a contract and consent to the agreement which is not given under influence or by force.
Janna Fachiridou law firm has the necessary experience to draft, negotiate and review contracts on your behalf like for example:
Contracts of Sale. Assignment Contracts
Rental Agreements
Appointment of an agent agreements
Commercial agreements
Partnership agreements
Business Agreements
Confidentiality Agreements
Work contracts
Immovable property
a. Real estate for Eu Citizens
In accordance with the Immovable Land Acquisition Law of 2003, which came into force on the day Cyprus became an EU member on the 1st of May 2004, any EU member State citizen, who has his or her permanent residence in the Republic of Cyprus, as well as any legal entity which was formed according to the legislation of an EU member state and which has its central offices or establishments in the Republic, can acquire any immovable property in Cyprus without the previous approval from the Council of Ministers.
b. Real estate for non Eu Citizens
The law governing the acquisition of immovable property in Cyprus by foreigners is the Cypriot Acquisition of Immovable Property (Foreigners) Law, Cap. 109 of the Laws of Cyprus (hereinafter referred to as “the Law”), as amended from time to time.
In regard to non EU citizens, applies the same as the law previously adopted for the acquisition of real estate in, which includes the granting of permission for the acquisition of immovable land by the Council of Ministers, for which all the prefects of each region of Cyprus were vested relevant law.
Non-EU citizens have the right purchase an apartment, or a house or villa which is under construction or built on an area not exceeding 4.014 square meters. Note that such citizens have the right to a limited purchase of real estate per family, only two real estate objects.
According to the Law in Section 2 a foreigner is: “…. Not a citizen of the Republic and includes a company that is controlled from foreigners, a foreign company and a trust in benefit of a foreigner but does not include the following:
1. Subject to a recent amendment of the above Law a Cyprus Company, regardless of who the shareholder is, does not fall within the above definition and can buy any property in Cyprus. For example a Cyprus Company with a foreigner shareholder can buy any kind and as many immovable properties in Cyprus without the need of the permission of the Council of Ministers.
Specifically article 2 of the Law now states that a legal entity which is registered according to the Law of a member state of the European Economic Community and has its registered office in a member state, is not considered a foreigner under the Law and thus is not subject to the restrictions of the above Law.
The procedure for purchase of real estate/buying real estate in Cyprus
Either before they have selected a property or right after that, they should to appoint a lawyer. The lawyer will undertake to do the relevant searches of controlling the property for mortgages or other charges, collecting the necessary information, necessary documents, drafting and / or revising the contract.
It is a usual practice in Cyprus to give a reservation deposit on the property so as to remove the property from the real estate market.
Following is the drafting and signing of the contracts of sale.
After signing the contract of sale, the lawyer of the Purchaser takes the signed contract to the Inland Revenue Department for payment of the stamp duty. Stamp duties depend on the purchase price.
Simultaneously, foreigners, non EU citizens, submit an application to the Council of Ministers for obtaining permission to purchase a real estate.
After paying the stamp duty, contracts of sale must be given by the lawyer of the Purchaser to the Land Registry Department for registration and further actual execution for Specific Performance purposes.
This procedure creates ownership of the acquired property in favor of the purchase for the benefit of the Purchaser until the title deed is transferred onto his name. It is very important to submit a contract of sale for specific performance, especially in the case of the purchase of real estate for which the title has not been issued yet.
If the Immovable property already has Title deed then it is simultaneously transferable onto a Purchaser on the completion of the transaction provided that all obligations and tax payments established by the contract were made/settled by the parties.
The transfer fees depends on the amount of real estate purchase and it should be noted that there is now a 50% discount.
The final steps are the transfer of utility bills to the Purchaser 's name.
JANNA FACHIRIDOU LLC is a law office based in Paphos, established in 2010 by Janna Fachiridou, a graduate of Moscow State Social University and a member of the Cyprus Bar association.
JANNA FACHIRIDOU LLC provides a number of legal services, which include but are not limited to:
1. Property and Contract Law: all procedures relating to the acquisition, sale and preparation of necessary documents of land and property in Cyprus
2. Immigration Law (Temporary and Permanent Residence permits, Category F permits, Regulation 6.2. permits, Citizenship etc)
3. Corporate (Registration and Administration of a Company as well as other economic activities)
4. Succession Law (Preparation, execution and Administration of Wills)
5. Taxation and Financial Law
6. Litigation in Court (Family, Civil, Criminal, Labor etc)
7. Certification of documents, Power of Attorneys, Translations etc.
8. Legal consultation on all law subjects.
Also members of our staff are fluent in Russian, English, Greek languages providing you the convenience of speaking about your problem in your native language.