General
Cyprus is located in the Eastern part of the Mediterranean Sea between Europe, Asia and Africa, close to Turkey, Syria, Greece and Egypt. Its geopolitical and strategic position is the cornerstone of its establishment as a financial and commercial centre in the Middle East, Eastern Europe and the Balkans. Probably the most famous features of Cyprus are its golden sandy beaches and its crystal-clear sea which have made the island one of the most popular tourist destinations.
Nicosia, the island's capital, is located roughly at the centre of Cyprus. Nicosia is the only capital city in the world which is divided. This division is due to the Turkish invasion in 1974. The other main cities of the island are: Larnaca, Paphos, and Limassol.
Cyprus has two international airports, Larnaca and Paphos, which cover adequately the needs of the local population and the island's visitors, both tourists and business people.
Population
The estimated population of Cyprus is 820.000. Greek Cypriots form by far the largest ethnic group, accounting for almost 80% of the population. Turkish Cypriots comprise the second largest group, while British, Armenians, Maronites and others make up the remaining 20%. In the area controlled by the Republic of Cyprus, different races, cultures and religions live together in harmony. Greek and Turkish are the official languages of the Republic but English is widely spoken and understood, and is regularly used in business, commerce and government.
Cyprus and the European Union
The agreement for the accession of the Republic of Cyprus to the E.U. was signed on 16 April 2003, and Cyprus became a full member on 1st May 2004.
Climate
Cyprus enjoys perhaps the best type of Mediterranean climate with about 340 warm and sunny days a year. The light rainy season is restricted to the period between November and March. The maximum mean temperatures in Nicosia range from 13C or 55F in January, the coldest month, to 40C or 105F in August, the hottest month. The corresponding minimum mean temperatures are 4C or 39F in January and 21C or 70F in July.
Cyprus Government
Cyprus' political system is a Presidential Democracy. The President of the Republic is delegated highest authority and power. He remains in power for five years and can be re-elected for unlimited terms. The President of the Cyprus Republic appoints the Council of Ministers which is responsible for all executive issues. The House of Representatives possesses the legislative power. The duration of each term is five years. The House of Representatives has fifty-six members and parties from all political groups are represented there. The current President of the Republic of Cyprus is Mr Tassos Papadopoulos.
The Legal System
The administration of Justice in Cyprus is exercised by the Judiciary, which is a separate and independent body from the executive and legislative authorities of the island. All appeals are heard by the Supreme Court, which is empowered to pronounce final judgment on all administrative and constitutional law matters. The Cyprus legal system is based on the same principles as that of the United Kingdom and all statutes regulating business matters and procedures are based essentially on English Law. The English language is widely used in the courts and most laws are officially translated into English. The continental system of administrative law according to which the legality of administrative acts can be judicially controlled has been introduced and applied in Cyprus by virtue of the Constitution. The Republic is a signatory to a large number of International Conventions and treaties including those relating to the protection of foreign investors. A large number of Cypriot lawyers are members of the United Kingdom's Inns of Court or graduates of British Universities. The Greek language is the official language for all litigation before all the Courts in Cyprus.
Lawyers' Fees
There are two categories of Lawyers' fees in Cyprus:
(a) The fess provided by the Law relating to litigation. These fees are calculated according to the scale of the subject matter.
(b) Fees of non-judicial and non-litigated matters such as meetings, conferences, registration of companies, patents and trademarks, preparation of contracts, etc.
These are also calculated according to the Regulations, and to standards and scales said out by the said Regulations.
The Economy
Cyprus has an open economy based on the free enterprise system. The role of the Government is limited to regulation, indicative planning and the provision of public utilities. The legal tender is the Cyprus Pound. However, Cyprus will join the Euro from January 1, 2008. Its ultimate maker is the Central Bank of Cyprus.
Companies
The Companies Law of Cyprus, which closely resembles the United Kingdom's Companies Act of 1948, provides for two major forms of companies: private companies and public companies. The Companies Law Chapter 113 was revised in 2003 in order to comply with the requirements set by the European Union. A company's constitution is comprised of the Memorandum and the Articles of Association.
Private companies
A private company must comply with the following provisions of the law:
- The right of share transfer is restricted. No invitation to the public to subscribe for its shares or debentures is allowed
- The company should have at least one shareholder with fifty the maximum.
Public companies
The main feature of public companies that differentiates them from other companies is the ability that they have to offer their shares or debentures to the public. However, if there will be an issue of shares to the public, the issue of a prospectus is necessary. In addition to this they are required to have a minimum number of seven shareholders. The maximum number of the shareholders is unlimited.
Time
GMT + 2 (GMT + 3 from last Sunday in March to last Sunday in October).
