Buying and Selling a Business in Cyprus
Cyprus is a thriving hub for local and international investment. Whether through mergers and acquisitions, share transfers, or asset sales, these transactions require careful legal planning to ensure compliance, risk mitigation, and successful outcomes.
Business Transactions
M&A & Acquisitions
Introduction
Cyprus is a thriving hub for local and international investment, attracting entrepreneurs, corporations, and private equity investors seeking to buy, sell, or restructure businesses. Whether through mergers and acquisitions, share transfers, or asset sales, these transactions require careful legal planning to ensure compliance, risk mitigation, and a successful outcome.
Legal Framework for Business Sales and Acquisitions
Business sales in Cyprus are governed by a combination of corporate, commercial, tax, and regulatory laws.
Share Purchase Agreements (SPA)
Where the buyer acquires ownership of the company through its shares. This route involves acquiring the entire legal entity including all assets, liabilities, and obligations.
Asset Purchase Agreements (APA)
Where specific assets and liabilities are transferred without acquiring the entire legal entity. This allows for selective acquisition of desired assets while leaving unwanted liabilities behind.
Each route has different legal, tax, and operational implications. Choosing the right structure requires professional advice to align with the client's objectives.
Our Comprehensive Process
Preparation
Sellers present their business in the best light, ensuring financial records, contracts, employment agreements, and regulatory compliance documents are in order. Buyers define acquisition goals and financing strategy.
Due Diligence
Comprehensive review of finances, contracts, tax position, employment relationships, intellectual property, and regulatory compliance. For sellers, preparing in advance helps reduce delays.
Negotiation
At the heart of every business transfer. We represent both buyers and sellers in negotiations, ensuring agreements reflect strategic and financial goals.
Agreement Drafting
Legal agreements are the foundation of the transaction. We draft and review agreements covering purchase price, payment conditions, warranties, and dispute resolution.
Regulatory Compliance
Ensure compliance with corporate governance, tax, employment, and sector-specific regulations. Handle filings with Cyprus Registrar of Companies and other authorities.
Closing
Final stage involves signing and executing agreements, transferring ownership, and completing all necessary filings and registrations for a seamless transition.
Our Services
At Psavvides Law Office, we provide comprehensive support for individuals and companies involved in buying or selling a business in Cyprus:
Legal due diligence for buyers and sellers
Structuring and negotiating share and asset purchase agreements
Drafting and reviewing transaction documentation
Advising on corporate restructuring, mergers, and joint ventures
Ensuring compliance with tax, employment, and regulatory obligations
Coordinating with accountants, auditors, and financial advisors
Overseeing completion and post-closing registrations
Ready to Buy or Sell a Business in Cyprus?
Our experienced legal team provides tailored support to guide clients through every stage of the business acquisition or sale process. Contact us today for expert legal guidance on your business transaction.