{The main|The|Difficulties} legislation that regulates mergers and acquisitions in Cyprus is the Companies {Legislation|Regulation|Rules} (Cap. 113). In particular, the sections 198-202 contain provisions about mergers, renovation and amalgamation of companies, and exchange of {stocks|stocks and shares} between several companies. {Additional|Various other|Different} important legislations are the Control of Concentration Among Enterprises Law (22(I)/ 1999) and the Safeguarding and Protection of Employees {Privileges|Protection under the law} in the Event of the Transfer of Companies, Businesses or Parts Thereof (104/(I)/2000). The first one promotes fair competition and {the 2nd|the other} one safeguards employees' rights in the event of a transfer of undertakings. EP 27-A, និស្ស័យស្នេហ៍ដាវទេព, Nisay Sne Dav Tep HD   

Procedure:

First of all, {the businesses|the firms} involved in the merger or {purchase|buy|obtain} must apply to the Court and then {plan|program} an over-all meeting of the shareholders of both companies. {Throughout the|Through the} meeting, it is determined {when it is|in case it is|whether it is} required to arrange the {financial obligations|debts} between the shareholders and the creditors. It should be pointed out that {the organization|the business|the corporation} being merged shall be ended up without going into liquidation {as well as|as well as its|and its particular} assets must be {used in|utilized in} the acquiring company.

{Based on the|In line with the} provisions of section 198, the merger or {purchase|buy|obtain} proceeds under the condition that the three-quarters of company's management approve the transaction. Then {a plan is|a structure is|a system is} drafted and it is presented to the auditors. Once the {plan|structure|system} qualifies, the companies may file the last request for approval with the Court. {Remember that|Be aware that} the request should be accompanied by a sworn statement {of just one|of 1} director in each company. Afterwards, a copy of the agreement must be submitted to the {Deliberar|Archivar|Suceder} of Companies. Finally, the board of directors of each company will draft a resolution that will determine the reorganisation plan and each company will be obliged to follow this particular plan.

{This|That} should be pointed away that regarding public companies, the merger procedure will be the same {other than|apart from|besides} for minor changes in the merger plan which must contain:

the name;
the form of the registered office of the companies;
{information about|specifics about|information regarding} the copy of shares and the amount of money;
information about the allocation of shares;
the exact {day|time|particular date} when the new investors will have the right to profits;
Advantages:

{Coming from|By|Via} a tax point of view, the primary {good thing about|benefit for} mergers and acquisitions is that profits derived by the dividends are exempt from the corporate {taxes|duty}. Moreover, mergers and {purchases are|transactions are} not subject to VAT in Cyprus. {An additional|One more|One other} considerable advantage is that profits {made} from the transfer of immovable properties during the merger or acquisition are exempt from {the main city|the administrative centre} gain taxation. In addition, {about the} transfer of immovable properties is not required to pay the transfer fee.