Further to the lengthy consultation between the competent authorities, the Cyprus partnership law has finally been amended by Law No.144(I)/2015 introducing the long awaited Partnership Limited by Shares ("LPS"). The law is already in force in 2015, as planned and finally in line with provisions existing for many years in major EU countries including UK, Luxembourg and Poland. In addition to the new LPS, the new maximum number of persons that can be partners in any type of partnership has been increased to 100.
The LPS is expected to attract a significant number of investors across the EU particularly expected to be used by Polish Closed End Fund structures for their commercial transactions.
An LPS can consist of one or more general partners (legal or natural persons) and one or more limited partners who can contribute capital towards shares they acquire in the LPS, nevertheless not authorised to manage nor operate the LPS.
Summing up this new development, it is important to note that the LPS continues to acquire no legal personality on formation (unlike an LTD that by law acquires legal personality upon incorporation). The LPS is tax transparent, so that taxation, if any, arises at the level of the partners. The amending law has now made it possible for Alternative Investment Funds to be formed as limited liability partnerships.
For more information on the latest legal updates and the opportunities, feel free to contact Stella C. Koukounis at s.koukounis@solsiduslaw.com or George Vrikis at g.vrikis@solsiduslaw.com For information on the ways Solsidus Law can add value to your business, please visit www.solsiduslaw.com
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.
