Fines on Cyprus companies for late filings to the Registrar of Companies

17 October 2019

Further to relatively recent changes to the Cyprus Companies Law, Cap 113, as amended (Law) effective as of 18 December 2019, the Registrar of Companies will impose administrative fines for late filing of a number of notification requirements, as set out below. The fine shall amount to €50 plus €1 for every day for which the default continues, such fine not to exceed the amount of €250 for each default.  The fines relate to:

 

  1. the notification in relation to the allotment of shares (Section 51 of the Law);
  2. the notification in relation to a change of the registered address (Section 102 of the Law);
  3. the notification in relation to a transfer of shares (Section 113A of Law);
  4. the notification(s) in relation to the particulars contained in the company’s register of directors and secretaries and any changes made thereto (Section 192 of the Law); and
  5. the notification(s) which must be made by an overseas company to the Registrar in relation to inter-alia, changes made to its directors and secretary, details of authorized representatives and the address of the overseas company’s place of business within the Republic (Section 349 of the Law).

 

Moreover, the Registrar of Companies shall impose an administrative fine for late filing of the Annual Return. For clarification, “Annual Return” is the obligation of every company registered in Cyprus, to prepare and submit to the Registrar of Companies the annual return statement (HE32 form) accompanied by the audited financial statements of the company, once a year within predefined set periods under the Law.   Specifically, as per section 120(4) of Law, the fine shall amount to €50 plus €1 for every day for which the default continues within the first 6 months plus €2 for every day thereafter for which the default continues; such fine not to exceed the amount of €500 for each default.

 

The above should be carefully considered to avoid paying unnecessary fines, both for future reference but also considering possible current defaults by companies in their notification obligations which, unlikely previously, will now cause the imposition of penalties that will accumulate.

 

For further information feel free to  contact Elena Petevinou at e.petevinou@playbell.com

 

Author: Elina Petevinou

 

The above is for information only and does not constitute advice.