Partnerships are regulated by the Partnerships and Business Names Law (Cap. 116). A general partnership is one in which all partners are general partners and have unrestricted liability for all the obligations of the partnership. A limited partnership is one in which at least one partner is treated as a general partner and has unrestricted liability for all the partnership obligations, with the other partners having limited liability up to the amount contributed (or remaining unpaid) by them to the partnership. Since the introduction of Amending Law 144(I)/2015, a limited liability partnership (LLP) can also be established.
In Cyprus, partnerships are not considered to be separate legal entities and, therefore, profits generated by a partnership are taxed as income received by the partners. Although a partnership exists as of the day on which it commences business, it must inform the Registrar of Companies within 30 days of commencement so its existence can be registered.