Initial and Relevant Obligations of a European Economic Interest Grouping (EEIG)
Objects
The object of an EEIG must be to facilitate or develop the economic activity of its members, as well as to improve or increase their profits from such activity.
The activities of an EEIG must relate to the economic activity of its members and only be ancillary to it. Therefore, the grouping is not allowed to:
- manage or control the activities of its members or of other business, particularly in relation to personnel, financing and investment issues;
- employ more than five hundred (500) persons;
- be used by a company for the granting of loans to a managing officer of a company or to any other person associated with such officer;
- be used for transferring assets between a company and the managing officer, or any person associated with such officer.
Furthermore, restrictions to the objects of a company in the Republic of Cyprus apply respectively to the registration of a European economic interest grouping (EEIG). For more information refer to the page Company's objects.
