Companies Registrar: Measures taken for supporting Cyprus companies affected by COVID-19

Within the framework of the measures taken by the Government of Cyprus, in an attempt to limit the further spread of the pandemic of COVID-19, the Companies Registrar announced on 23/03/2020, 24/03/2020 and 16/04/2020, the following measures to support companies affected by the restrictive measures imposed thereof.

The Registrar of Companies announced on 23/03/2020, 24/03/2020 and 16/04/2020, that certain deadlines, which are vital to the operation of Cyprus companies are extended, as outlined below:
 

 

1. Payment of Annual Levy
According to the Companies Law, Cap.113, all Cyprus registered companies (either dormant or not), irrespective of their year of registration, are required to pay an Annual Levy of €350,00 to the Registrar of Companies by 30 June of each year.

Subject to the company being struck off by the Registrar, in cases where the company is late with the payment and proceeds with the payment of the Annual Levy within 2 months from 30 June of that year, the levy will be subject to a 10% charge. In cases where the company is late with the payment and proceeds with the payment of the Annual Levy within 5 months or more from 30 June of that year, it will be subject to a 30% charge.

The deadline for the payment of the Annual Levy for 2020 has now been extended from 30th of June to 31st of December 2020 without the penalty charge of 10% or 30%. Further, pursuant to the provisions of article 391 (5) (b) of the Companies Law, Cap. 113, it is announced that, in the event of the continuation of the pandemic of COVID-19 and its negative economic consequences thereof, the Minister of Energy, Commerce and Industry may, by a decree to be published in the Official Gazette of the Republic, extend the deadline for payment of the annual fee for the year 2020 beyond the 31st of December of 2020.

2. Annual Returns (form HE32)
Cyprus private companies limited by shares are required to prepare and submit to the Registrar an Annual Return (HE32) accompanied by its financial statements once per calendar year (except in the year of incorporation).

The imposition of monetary penalties for the late submissions of Annual Return (HE32), stipulated in Companies Law, Cap.113 to the Registrar has now been postponed until 2021.
The Annual Return (HE32) for the year 2019, namely with draw up date from 1st of January 2020 until 31st of December 2020 may be filed with the Registrar up until the 28th of January 2021, without the imposition of a penalty of €20,00 for late filing.

3. Involuntary strike – off by the Registrar
According to article 327 of the Companies Law, Cap.113, any company which omits to file at the Registrar any document required by the Law, may be struck-off from the register of companies.

In light of the above, Cyprus companies that do not comply with the provisions of the Companies Law, Cap.113, as to the submission of the Annual Return (HE32), are subject to be struck off by the Registrar, and, in this case, the relevant announcements are made in the Official Gazette of Cyprus allowing non-compliant companies a 3 months’ grace period to comply with the filing requirements.

The process of publication in the Official Gazette of Cyprus for the striking-off of non-compliant companies is now suspended until January 2021.

4. Imposition of monetary penalties for the late submission of Forms to the Registrar
The imposition of a monetary penalty for late submission of the required by Companies Law, Cap.113 forms at the Registrar, is postponed until 18th of December 2020.

5. Web filing demos
The Registrar, in an attempt to assist the Cyprus companies and at the same time promote its e-filing system, prepared web filing demos, for the following, inter alia, services:

  • User registration for the e-filing system of the Registrar
  • Obtaining access codes for a Cyprus company
  • Create or change of authorization code of a Cyprus company
  • Navigating demo
  • Registration of a Cyprus company
  • Update/ Change the registered office address for a Cyprus company
  • Update/ Change of Cyprus company’s officials
  • Transfer of shares
  • Increase/ decrease of share capital of a Cyprus company
  • Amendment of Memorandum and/or Articles of Association of a Cyprus company
  • Change of a Cyprus company name
  • Opening of translation file
  • Print of certified copies
 
For more information and guidance, please contact us at info@frangoslaw.com
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