CYPRUS COMPANIES: ANNUAL LEVY FOR 2016

CYPRUS COMPANIES: ANNUAL LEVY FOR 2016

In 2012 the Cyprus Parliament passed a Law regarding the annual levy on Cyprus Companies. Following the provisions of Companies Law (Cap. 113), all companies registered with the Registrar of Companies in Cyprus are obliged to pay an annual levy of €350 in order to be considered in good standing and for their name to be reserved on the register of the Companies Registry.

The amount of €350 must be submitted by the 30th of June 2016 by all the Cyprus Registered Companies.  Note that for Groups of Companies the maximum levy is fixed as €20.000.  The annual levy can be paid online or at the counter desks of the Department of Registrar of Companies and Official Receiver.

Penalties:

In case the annual levy is not paid by the 30th of June 2016, then the company will be obliged to pay the levy plus a penalty as follows:

  • If the levy is submitted within two months from the 30th of June 2016, then a penalty of 10% will be imposed. As a result, the payable amount will be €385 (350+ 350*(0.1));
  • If the levy is submitted within five months from the 30th of June 2016, then a penalty of 30% will be imposed. As a result, the payable amount will be €455 (350+ 350*(0.3));

Company Strike-Off:

If a company does not proceed with the payment of the levy and any penalties that might occur, then the Cyprus Registrar of Companies without notification will strike off the company from its records pursuant to the provisions of the Cyprus Companies Law. Given that the strike-off can be cancelled only by a Court Order, it is important to pay the annual levy on time in order to avoid penalties and other unnecessary charges.

Pending Annual Levy from Previous Years:

  • For the year 2015: €490
  • For the year 2014: €490
  • For the year 2013: €490

Our Services:

The legal team of Michael Chambers& Co. LLC recommends you to arrange the payment of annual levy as soon as possible in order to avoid penalties and other expenses. Our lawyers are able to provide you further clarifications on the annual levy. If you wish to speak to one of our lawyers, then please contact us: info@cypruslawfirm.com