A Partnership is based on an agreement between two or more natural or legal persons to carry on a business in common with the view to profit. Partnerships are registered in Cyprus under the Partnerships and Business Names Law which is also based on English Law.
There are two types of Partnerships:
General Partnership in which every partner is jointly and severally liable with the other partners (without limit) for all debts and obligations of the partnership. After a partner’s death his estate is also severally liable for such debts and obligations in the due course of an administration, insofar as they remain unsatisfied subject to the prior payment of his separate debts.
Limited Partnership in which there is at least one general partner liable (without limit) for all debts and obligations of the partnership and one or more limited partners who are not liable beyond the fixed amount that they have contributed to the partnership. A limited partner may neither take part in the management of the partnership nor bind it.
For the registration of a partnership, a prescribed form is submitted to the Registrar of Partnerships containing the name, address, nationality, profession of each partner, the name, object and duration of the partnership and the partners’ authority to bind the partnership.