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ILN Today Post

The Advantages of Setting Up an Electronic Money Institution

An Electronic Money Institution (EMI) is a market participant licensed by the Central Bank of Cyprus, which has the right to issue electronic money. Electronic money is pre-paid monetary value issued into circulation by an electronic money institution, held on electronic devices, which can be used for payment purposes. An EMI may also perform money remittances, payment transactions, provide cash deposit and withdrawal services as well as perform direct debit or credit transfers.

The full license for electronic money is not limited in either time or area of activities. Thus, a holder of the EMI license in Cyprus shall be allowed to provide any services in the European Economic Area (EEA) without having to undergo a licensing procedure in any other member state. After the license in Cyprus is obtained the EMI may provide services in other EEA member states by means of passporting (with the use of freedom to provide services). This financial structure allows solving the main complexity of the current world economic situation for a large transnational business – banking services and international transfers. Read more…

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ILN Today Post

Reserving a Company Name in Cyprus

In order for a company to be registered, the name under which it is proposed to be registered must have been previously approved by the Registrar of Companies and Official Receiver (hereinafter the “Registrar”) after submitting a relevant application.

According to the Companies Law Cap.113 the proposed name to be approved by the Registrar certain conditions must be met.

If the name is approved, then a name code is given to the applicant by the Registrar of Companies, which should be used when registering the company and which is valid for six months. Read more…

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ILN Today Post

Enclaved Purchasers

Did you know that the right of all purchasers who did not lodge and/or submit their sale contract or assignment agreement before the District Land Office lapses on 31.12.2022?

The recent legislation is judged to be fair as it is undoubtedly a significant step for the protection of the purchasers who have fully paid the agreed purchase price according to their sale agreement and have not yet receive the separate title deed of their immovable property for reasons beyond their control.

The legislator in an attempt to further help and assist those purchasers who have not filed their sale agreement or their assignment agreement before the District Land Registry has set the deadline for filing an application with the Court on 31.12.2022. Read more…

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ILN Today Post

Cyprus Insolvency Procedures

  1. The Legal Framework

Insolvency matters in Cyprus are governed by the Bankruptcy Law Cap.5, which deals with the bankruptcy of natural persons, and the Companies Law Cap.113, supplemented by the Companies (Winding Up) Rules and certain provisions of the Bankruptcy Law which regulate the insolvency of legal persons.

In 2015 the Cypriot Insolvency Law has been substantially amended and expanded in order to provide for the possibility of debt restructuring of natural persons through personal repayment plans and debt relief orders by the enactment of the Insolvency of Natural Persons (Personal Repayment Plans and Debt Relief Order) Law of 2015 (L. 65(I)/2015).

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ILN Today Post

Re-Domiciliation Out of Cyprus

Application for re-domiciliation abroad

A Cyprus company registered under the provisions of the Companies Law, Cap. 113 may apply to a foreign country to be registered and continue its existence under that legal regime provided that the following has been obtained:

(a) the consent of the Registrar of Cyprus companies has been obtained; and

(b) a legal opinion from the foreign jurisdiction proving that such re-domiciliation is allowed. Read more…

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