Annual Charge for Cyprus Companies

As from 2011 all registered Cyprus companies are obliged to pay an annual charge of Euro 350 in order for the companies to be in good standing and to remain in the register of Cyprus companies at the Registrar of Companies.

For Cyprus companies which belong to a group of companies the total amount of annual charges of such companies cannot exceed Euro 20.000, therefore the cap of Euro 20.000 can only apply where over 57 Cyprus companies are within in a group.

Time limits for payment of the charge
The Companies have an obligation to pay the annual charge by 30th June of each year. For the year 2011 the deadline for the payment of the annual charge is set for 31st December 2011.

Who is obliged to pay
Companies registered in 2010 or earlier are obliged to pay the charge of Euro 350 for the year 2011 by 31st December 2011 and thereafter must pay Euro 350 by 30th June of each subsequent year. For example, a company registered on 25th April 2009 has an obligation to pay the charge of Euro 350 by 31st December 2011 and then Euro 350 by 30th June 2012 and thereafter Euro 350 by the 30th June of each subsequent year.

The obligation for payment commences on the year subsequent to the year of incorporation.

Companies registered in 2011 and after are obliged to pay the charge of Euro 350 annually by 30th June of the following year. For example, a company registered on 20th February 2011 shall be obliged to pay Euro 350 by 30th June 2012 and thereafter Euro 350 by 30th June of each subsequent year.

A company registered on 12th January 2012 shall be obliged to pay the annual charge by 30th June 2013 and thereafter Euro 350 by 30th June of each subsequent year.

Penalties for late payment
• In case of a delay of up to two months there is a 10% penalty.
• In case of a delay between two and five months there is a 30% penalty.

If a company does not comply with the obligation for the payment of the fee within the above-mentioned time limits, the Registrar of Companies shall proceed with striking off the company from the register of companies. This means that after the fifth month of delay, the Registrar of Companies may refuse to issue any certificates (including certificates of good standing) or to proceed with any applications for changes at the Registrar of Companies.

A company may be re-instated within two years from the date of strike off from the register automatically provided a fee of Euro 500 (in addition to the outstanding amounts of the charge) is paid.

A company may be re-instated after two years from the date of the strike off from the register provided a fee of Euro 750 (in addition to the outstanding amounts of the charge) is paid.

Exemptions to the obligation for payment of the annual charge
Subject to the discretion of the Registrar of Companies, the annual charge of Euro 350 shall not apply to the following companies:

• Companies with neither assets nor turnover; or
• Companies with assets but no turnover; or
• Companies with turnover but no assets; or
• Companies with assets in the occupied areas, i.e. not controlled by the Republic of Cyprus.

Examples of companies that do not have to pay include shelf companies and holding companies with no income arising from their holding activity.
For more information and inquiries check our cyprus company registration website.

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