Partners - Cyprus

Updated 12/2009

Legal requirements

Types of collaboration

Franchise. This is an agreement whereby the "Franchisor" gives the "Beneficiary" the right to exploit the franchise with the purpose of marketing certain types of products and/or services through an economic consideration.

At the very least, it includes requirements on the use of a common name or shop sign and uniform appearance of the premises or means of transport under the contract as well as the communication of know-how, the continued provision by the franchisor to the franchisee of marketing and technical support.

Partnership. This is a single person company (Partnership or Limited Partnership - Cooperative Society), whereby two or more parties join forces for the creation of a joint business.

Joint Venture. This is the association of physical or legal persons, through which a common purpose is sought after through common means. The desired objective of the Joint Venture differs from that of other corporate types in the sense that it is not permanent, but unique and is usually directly related to a particular project.

Sub-contracting. This is a form of cooperation between companies in which the initiator entrusts the subcontractor or agent for the manufacture of components or parts or for carrying out work relating to his/her products, thus completing the production process.

Production agreements. These are joint production agreements, in accordance with which the parties agree to jointly produce certain products, or specialisation agreements (unilateral or reciprocal) in which the parties unilaterally or reciprocally agree to cease production of a product and buy it from the other party.

Trade Intermediary Services. This is the establishment of trade agreements on cooperation between companies/ competitors in the sale, distribution or promotion of their products/services.

Technology transfer. This includes the transfer of technology, in other words any mechanism by which technology, in the broad sense, is transferred bythe franchisor to the recipient that is the company. The transfer of technology is carried out in numerous ways.

Reference is made to mechanisms such as product design and production, the implementation of ideas, production methodologies, the use of expertise be it through the appointment of skilled employees from a company or through licencing patent rights.

Business Associations operate under the auspices of the CCCI.

Cyprus Chamber of Commerce and Industry

More specifically Clusters are defined as groups of independent companies and related entities that cooperate and compete and are geographically concentrated in one or more regions, although it is likely that the group (cluster) also operates internationally.

These specialise in a particular sector - business field and are linked with each other by common technologiees and skills. The subject matter they deal with may either be grounded in scientific research or be of conventional nature whereby "joint" actions of cooperation are formed.

Other options for expanding your business are taking over an existing one, merging with another company or opening a branch in another EU country.

Administrative procedures

Avoidance of double taxation

Every taxpayer (company or natural person) who has made tax contributions both abroad and in Cyprus in relation to the same income, may claim a credit against tax payable in Cyprus regarding this income, after:

Duly completing the relevant part of his/her tax return, and
Having provided sufficient evidence of tax payments abroad.

Resources

The Ministry of Commerce, Industry and Tourism has a database listing all registered business partnerships in Cyprus. The database's catalogue allows searches in all of Cyprus's commercial sectors.