Non-Governmental Organisations (NGOs) in Cyprus

What Is a Non-Governmental Organisation (NGO)?

A non-governmental organisation (NGO) is an entity that operates independently of any government with the primary aim of improving societal conditions. NGOs are typically non-profit organisations, often referred to as civil society organisations. They are established at community, national, and international levels to pursue social, cultural, humanitarian, or environmental goals. NGOs focus on public benefit activities such as education, healthcare, environmental protection, or human rights advocacy.

Types of Non-Profit Organisations in Cyprus

In Cyprus, the law recognises three main types of non-profit organisations:

1. Non-Profit Companies: Entities established for non-commercial purposes, such as charity, science, or religion.
2. Foundations: Organisations with assets dedicated to serving a specific cause.
3. Clubs: Associations formed by at least 20 members, often for public benefit, entertainment, or cultural activities.

REGISTRATION OF A CLUB

Clubs in Cyprus are governed by the Clubs and Foundations Law [Law 104(I)/2017].

• A minimum of 20 members is required to establish a Club. Members must also form the Club’s Board of Directors.
• Clubs must serve public purposes and are prohibited from engaging in commercial or economic activities.
• Ownership of Property: Any property donated to or acquired by the Club belongs to the Club, not its members or donors. Upon dissolution, the property cannot be distributed among members.
• The Board of Directors must include at least five members, unless the constitution specifies otherwise.
• Decision-making is typically done by a simple majority of Board members present at meetings.
• Clubs are required to maintain audited financial accounts and submit them annually to the Registrar of Clubs, which operates under the Ministry of Interior.
• Timeline: Registration usually takes 1 to 3 months.

REGISTRATION OF FOUNDATION

Foundations in Cyprus are also regulated under the Clubs and Foundations Law [Law 104(I)/2017].

• Foundations are established to manage non-profit assets donated for a specific cause.
• The donated property must have a value of at least €1,000.
• Administration is handled by Commissioners or a Board of Directors, whose members are appointed by the founders. The founders cannot modify these appointments after registration.
• Permitted purposes include promoting education, health, arts, culture, community development, human rights, environmental protection, and other public benefit activities.
• A Foundation is managed by at least three members, and decisions are made by a simple majority unless stated otherwise in the constitution.
• Foundations must maintain accounting records and prepare annual financial statements.
• Registration is overseen by the Registrar of Clubs, under the Ministry of Interior.
• Timeline: Registration typically takes 1 to 3 months.

REGISTRATION OF A NON-PROFIT COMPANY

Non-profit companies are registered under the Companies Law (Cap. 113).

• The objectives must include promoting commerce, arts, science, religion, charity, or community welfare.
• Profits or revenue must solely serve the organisation’s objectives, and dividends to members are strictly prohibited.
• The company’s Memorandum of Association must explicitly state:
• It is a non-profit company.
• In the event of dissolution, any remaining assets must be transferred to another non-profit organization with similar objectives.
• Managed by a Board of Directors, the company is required to file audited accounts annually with the Registrar of Companies.
• Registration is handled by the Department of Registrar of Companies.
• Timeline: Registration takes approximately two weeks.

Setting up an NGO in Cyprus is a structured process, governed by clear legal frameworks. Whether you choose to form a Club, Foundation, or Non-Profit Company, it is essential to align your organisation’s purpose and operations with the applicable laws. With proper planning and compliance, NGOs in Cyprus can effectively contribute to social, cultural, or environmental development.

If you’re planning to establish an NGO, consulting legal experts or professional advisors can simplify the process and ensure compliance with all requirements.