Cyprus companies – deadlines extended due to COVID-19

The Government of Cyprus has introduced measures to support companies/businesses affected by the restrictive measures imposed due to the spread of COVID-19. In the context of those measures, the Registrar of Companies (the Registrar) has issued formal announcements on 23 and 24 March 2020 to extend certain deadlines that are important to the operation of Cypriot companies. Below we outline the relevant information and announcements.

1. Annual Levy

All companies registered in Cyprus (either dormant or not) are required to pay an Annual Levy in the amount of EUR 350, 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 to the payment of the Annual Levy within 2 months from 30 June of that year, it will be subject to a 10% charge. In cases where the company is late with the payment and proceeds to 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 30 June to 31 December 2020 without the penalty charge of 10% or 30%.

2. Annual Returns

Each Cyprus company shall file its Annual Return (form HE32) accompanied by the financial statements once per calendar year (except in the year of incorporation).

The Registrar has now confirmed that the Annual Returns dated from 1 January 2020 to 31 December 2020 may be submitted to the Registrar until 28 January 2021, without the penalty of EUR 20 for late filing.

3. Striking – Off of non-compliant companies

Cyprus companies that do not comply with the filing of their Annual Returns 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.