As a result of EU Cross-Border Mergers Directive 2005/56/EC and N.186(I)/2007 under Cyprus Companies Law, Cap. 113, cross border mergers are possible between Cypriot companies (limited by shares) and companies registered in the EU. It is important to note that limited liability companies by guarantee and companies subject to liquidation are not permitted to take part in cross border merger.
EU Directive 2005/56/EC states that the Cross-Border Merger process is monitored entirely by the national applicable rules and regulations of the Member State, which mean that companies can benefit from the following under Cyprus law: