The Cyprus House of Ministers proceeded to vote on amendments to the Medical Legislation thus allowing doctors providing medical services through the establishment and operation of companies. The amendments were published in the Official Gazette on 19 July 2013.
The main provisions of the new legislation are the following:
• Type of company
Medical companies can have the form of a private limited liability company, general partnership or limited partnership.
• Company name
The company name of a medical company should consist solely of the name or names of one or more doctors who exercise or have exercised their profession. Additionally, in case of a limited company, the name is registered with the acronym “I.E.P.E.” (Medical Limited Liability Company), and if the name is written in Latin characters will be followed with the acronym «DLC» (Doctors ‘Limited Company).
• Registration of a medical company
Notwithstanding the provisions of the Companies Law, to allow for the registration of a medical company with the Registrar of Companies the prior approval by the Cyprus Medical Council is needed. Subsequently, and after the registration of the medical company with the Registrar of Companies, a special record will also be kept by the Medical Council which will include all companies belonging to doctors and called the “Register of Companies of Doctors.”
• Shareholders of a medical company
Shareholders of a private company of an I.E.P.E. type should be wholly registered doctors. The same applies to members of the board of directors. The shareholder of a private company I.E.P.E. maybe also a general or limited partnership whose partners are registered doctors (condition for registration of such partnerships).
• Doctors’ medical responsibility
In no way the personal liability of doctors for medical negligence or for any offense committed in the exercise of their medical duties is offset due to the provision of their services through medical companies.
Additionally, the medical company will be considered partly responsible for the acts and / or omissions of its doctors shareholders, partners or employees. Doctors are also not exempted of any individual disciplinary responsibilities, while the medical company may have its share in the disciplinary liability.