Company Due Diligence in Cyprus

Cyprus is an attractive country for foreign investors. Numerous business people come here to open a company, while others take part in various partnerships with local companies.

Foreign business people who do not know too much about their Cypriot partners can appeal to different kinds of procedures to check if the local company is in order.

One of these procedures is represented by company due diligence in Cyprus. Our law firm in Cyprus offers company due diligence services for our clients.

How to check a company with the Registrar of Companies in Cyprus

Company due diligence in Cyprus can be effectuated by a search on the business entity with the Companies Register in Cyprus or through the EU BRIS search on the e-Justice portal.

The Cypriot Registrar of Companies offers details connected to:

• The shareholders of a local business;
• The encumbrances;
• The bankruptcy procedure;
• The filed financial statements (the register does not list a company's debts).

These details can also be searched through the EU BRIS portal (e-Justice), which works in close connection with the Cypriot Companies Registrar.

The BRIS portal is convenient for business people who are searching for details about a company in Cyprus without having to be physically present in the country. Our lawyers in Cyprus can provide further information on this matter.

How is the due diligence in Cyprus effectuated?

The first stage for an effective company due diligence in Cyprus is establishing the kind of search a foreign investor wishes to effectuate.

Our Cypriot law firm effectuates the following types of due diligence:

• Competitor due diligence: it implies an overview of the competitive context in which the acquisition will happen to comprehend the means in which the company can better position itself and how the competitors could respond to the acquisition;
• Target industry due diligence: offering analyses of the sector and where it is heading;
• Financial due diligence: it involves:
  • Analyzing the on and off balance sheet assets and liabilities;
  • Identification of the crucial business drivers, trend research and where the risk in the business entity might be;
  • Evaluation of the earning quality of the target and identification if the accounting policies and methods utilized are too aggressive;
• Other types of company due diligence: our attorneys in Cyprus can offer further details on what they might consist of.

In case you want to start doing business with a local company and you require company due diligence services in Cyprus, please get in touch with our law firm in Cyprus.