Mergers and Acquisitions

Mergers and acquisitions are common practice for companies wishing to expand their reach, expand into new segments, or gain market share.

A merger is the voluntary unity of two existing companies into one new legal entity, on generally equal terms. The five major types of mergers and several reasons why companies undergo mergers.

An acquisition refers to the acquisition of one entity by another. In an acquisition, a smaller company is often taken over and consumed by a larger company and ceases to exist, as its assets become part of the larger company.

Companies Law (Cap. 113) is the main legislation that regulates mergers and acquisitions in Cyprus – more specifically, sections 198-202 provide for mergers, reconstruction and amalgamation of companies, and exchange of shares between two or more companies.

The benefit of mergers and acquisitions in Cyprus is that profits derived by the dividends are exempt from corporate tax and furthermore they are not subject to VAT in Cyprus. Moreover, another considerable benefit is that profits generated from the transfer of immovable properties during the merger or acquisition are exempt from capital gains taxation and no transfer fee is required for the transfer of immovable properties.

How we can help you:

  • Strong legal support on mergers and acquisitions
  • Apply to the court for approval and carry out all court procedures and related paperwork
  • Coordinate a meeting with the shareholders of both companies with our legal, tax and audit consultants in order to advise the shareholders appropriately from the legal and tax point of view on the matter and determine whether there are any liabilities to arrange or settle.
  • Arrange the winding up of the company where necessary and the transfer of its assets to the acquiring company.
  • Preparing the financial statements of the company
  • Submission of necessary documentation to the Registrar of companies.


At Elias Christofi & Co. Ltd we have a team with a range of inhouse experts working together for the completion of every step of the process!

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