Within the framework of the legislative reform and reorganization of the Cyprus Registrar of Companies, the Cyprus Government has proceeded to the following amendments in the Cyprus Companies Law Cap 113:
I. Abolition of the 0.6% variable charge on the Share Capital of a Cypriot Company
The Council of Ministers proceeded with the abolishment of the 0.6% variable charge on the Share Capital of a Cypriot Company, applicable when incorporating a Cypriot Company as well as when increasing a Cypriot Company’s share capital.
The practical implication of the above reform is that Cypriot Companies intending to make reorganizations or restructurings involving their Share Capital will no longer be liable to pay a 0.6% variable charge on such an increase of the Share Capital.
II. Introduction of Administrative Fines for late fillings
The Registrar of Companies shall impose an administrative fine for late filling of the annual return. 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 is not to exceed the amount of €500 for each default.
The imposition of the above fine will be effective as of 18 December 2019.
In addition, the Registrar of Companies shall also impose fines for late filling of the below notifications:
• the notification in relation to the allotments of shares;
• the notification in relation to a change of the registered address;
• the notification in relation to a transfer of shares;
• the notification in relation to the particulars contained in the company’s register of director and secretaries and changes made thereto;
• the notification 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.
Late filing of the above notifications shall give rise to a fine of €50 plus €1 for every day for which the default continues; such fine is not to exceed the amount of €250 for each default.
The imposition of the above fine will also be effective as of 18 December 2019.
III. Amendments relating to the strike-off of a Company
A member or director can apply to the Registrar of Companies to re-instate a company which was struck-off on the basis that it was not carrying on a business or did not pay the annual levy. As per the new amendments, the Registrar of Companies has the power to re-instate the company without the involvement of the Court.
The Registrar of Companies has not yet announced the effective date of implementation of the above.
Please do not hesitate to contact us and request any further information in relation to the above. Our tax and legal team are here to provide you a first-class service and excellent solutions tailored to the needs of your business.
Ninos Mangis, ninos.mangis@eurofast.eu
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