Transferring a business to a third party or another company is a viable alternative option for a retiring business owner.
Business transfers: a step-by-step guide
A business may transfer all its assets and liabilities to another company after informing its creditors of its decision to transfer ownership of the business.
The Registrar then registers and issues an agreement for the transfer of the business's interested parties.
Registration of the transfer agreement, as administered under Cyprus's Cooperative Societies Acts, provides adequate proof of the transfer of all the transferring business's assets and liabilities to the new owners. Transfers do not affect the rights of creditors.
Within a period of fifteen days of the date of effective commencement of the transfer, creditors of the business being transferred are sent full details relating to the business's transfer and its new owners.
Taking over an existing company is a worthwhile alternative to setting up a new business.
The Department of the Registrar of Companies and Official Receiver of the Ministry of Commerce deals with the registration, monitoring, control, and deregistration of domestic businesses, foreign, companies, cooperatives and trade names.
Business transfer procedures
Personal companies are advised to contact the Department of the Registrar of Companies and Official Receiver of the Ministry of Commerce, Industry and Tourism for useful advice and information.
The transfer of shares and the change of directors consist of forms HE57 and HE4, which have to be completed by the companies themselves.