Law 144(I) of 2015 amends the Partnerships and Business
Names Law (Cap 116) to introduce the concept of partnerships
limited by shares (commonly referred to as limited liability
partnerships, or LLPs) to the law of Cyprus. LLPs and their
equivalents are widely used in other jurisdictions,
particularly for investment holding purposes, and their
introduction into Cyprus will provide a convenient new
A partnership limited by shares is similar to the
conventional limited partnership, which could (and still may)
be formed under the Partnerships and Business Names Law. There
must be at least one general partner, with unlimited liability
for the debts and obligations of the partnership, and one or
more limited partners. The liability of the limited partners in
an LLP is restricted to the amount unpaid on the shares they
hold in the partnership, in the same way as shareholders in a
limited company. As in a conventional limited partnership, only
general partners may participate in the management and the
operations of the partnership, and be authorised to bind the
partnership; limited partners may not.
Like all other partnerships, partnerships limited by shares
have no separate legal personality and are transparent for tax
purposes, with tax being assessed on the partners.
The amending law also increases the limit on the total
number of partners in any type of partnership to 100.