Cyprus Registrar abolishes annual company fee

Termination of annual company fee

Termination of annual company fee

On the 21st of March the Department of the Cyprus Registrar of Companies and Intellectual Property announced that the annual levy of €350 is abolished from 2024 onwards. The annual fees for years 2011–2023 are still applicable.

It has also been clarified that the companies which have already settled their annual fee for 2024 will be refunded.

This measure will offer great relief and support to Cyprus companies and serves as a step to enhancing the local business environment.

Official Source

Late submission fee for Annual Reports HE32

Annual Returns (HE32): Late submission penalty fee has been set to €150

Annual Returns (HE32): Late submission penalty fee has been set to €150

The Department of the Registrar of Companies and Intellectual Property announced that pursuant to the Companies (Amendment) Law 2024, Law 18(I)/2024, published in the Official Gazette on 5 March 2024 (the Law), the maximum fine for Annual Returns with a date of issue for the years 2021 and onwards will not exceed €150 for each infringement.

The fees are summarized below:

In case of timely registration: €20 form fee

In case of late registration: (i) €20 form fee, (ii) €20 as a charge, (iii) the corresponding late registration fee of €50 as a lump sum and €1 for each day of continuation of the infringement, up to a maximum total amount of €150.

According to the Law, persons who paid for the late submission of the 2023 HE32, from 05/03/2024 onwards, are entitled to a refund of any amount of fine exceeding €150. Such refund will be made as follows:

  1. For online payments made via JCC, the excess amount will be refunded directly to the card with which the payment was made, without any further action by the applicant.
  2. For payments made to the Cashier of the Department of the Registrar of Companies and Intellectual Property, the additional amount will be returned to the applicant’s Bank Account upon presentation of the payment document, together with the FIMAS Payment Authorization Form, accompanied by a photocopy of the statement of the Bank Account to be credited (Authorization Form can be downloaded here).

Official source

Updates by Registrar regarding the BO register

Updates to the Beneficial Owners register

The Department of the Registrar of Companies and Intellectual Property made the following announcement on the 28th of February 2024 based on the Beneficial Owner register:

1. All companies established or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies (SE) and all Partnerships (hereinafter Organizations) or their officers/partners are invited to access the Register of Beneficial owners until March 31, 2024 and to update it, either with details of Beneficial Owners, or by declaring their exclusion based on paragraph 3 (1)(a)(b) of Directive KDP112/2021 as it was modified, or by exercising the right of Due Diligence. From the 1st of April, monetary charges and other sanctions will be imposed for non-compliance.

2. From 1 April 2024 all the actions below will be available, and failure to comply with them will result in financial charges:

  • The Register of Beneficial Owners should be updated within 45 days from the day on which the Organization or its officers/partners became aware of the change of Beneficial Owners
  • The Register of Beneficial Owners should be informed within 90 days from the establishment of a new Organization, by the Organization itself or its officers/partners with regards to the Beneficial Owners’ details
  • From 01/10 until 31/12 of each year, the Organizations or their officers/partners should confirm the information included in the Register of Beneficial Owners
  • Within 30 days of receiving an electronic notification about data mismatch, the Organisation or its officers/partners should take necessary actions and correct such data

3. It is reminded that the following actions are still valid:

  • Online research in the records of the Register of Beneficial Owners
  • Request for exemption from disclosure of information
  • Request for access to the details of a minor

Do not hesitate to contact our team for providing you further explanation and assistance with respect to the Register of Beneficial Owners

Original source by the Department of Registrar of Companies and Intellectual Property

Cyprus ultimate beneficial owners electronic register

Register of Beneficial Owners: Implementation of the final solution of the Electronic System

The Department of Registrar of Companies and Intellectual Property following its announcement “Notice for registration of details of Beneficial Owners (BOs) in the Register of Beneficial Owners (BO register) and imposition of fines” dated 09/01/2023, has announced the commencement of the application of the final solution of the electronic system of the BO register from November 14, 2023.

The final solution of the electronic system will be implemented in its entirety within 2024 and constitutes of three phases:

Period 1: 14/11/2023 – 31/12/2023

All companies established or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies and all Partnerships (hereinafter ‘Organizations’) or their officers/partners are invited to enter the system of the final solution and proceed with the updating/re-registering their Beneficial Owners, even if they have already done so in the interim solution system. For re-enrollment purposes, the Beneficial Owners’ data that have already been provided in the interim solution will be shown, in order to see what has been submitted and then re-submit the same. No financial charge will be imposed during the first period. The way to enter the final solution system will be the same as that of the interim solution.

From this period as well as in the following periods, it will be possible to:

  • Exercise due diligence,
  • Obtain an exception to the information disclosure,
  • Request access to the data of minors,
  • Organizations that are listed on a regulated market, which is subject to disclosure requirements under European Union Legislation will be able to declare their exemption,
  • Organizations subject to equivalent international standards that ensure adequate transparency of proprietary information will be able to declare their exemption;
  • The Obliged Entities and the Competent and Supervisory Authorities will be able to carry out an electronic search in the system on their own. Regarding the Obliged Entities, there will be an examination and then acceptance or rejection of their role by Department officials. The online survey of Obliged Entities will be completed by paying the corresponding fee of 3.50 Euros per Organization.

It should be noted that those Organizations which have demonstrated or intended to demonstrate due diligence during the interim solution should do so in the final solution. The same applies to Organizations that will have to declare their exemption from the final solution either because they are listed on a regulated market, which is subject to disclosure requirements under European Union Legislation, or because they are Organizations subject to equivalent international standards that ensure sufficient transparency of ownership information, which should state their exemption  in the final solution.

Period 2: 01/01/2024 – 29/02/2024

Those companies incorporated or registered under the Companies Law, the European Public Limited Liability Companies and Partnerships or their officers/partners, that have not updated/re-registered the data of their Beneficial Owners into the final solution system during Period 1, will be subject to a penalty.

The charge will be applicable from 01/01/2024 until the date of updating/re-registering the Beneficial Owners’ data. After the above Organizations have paid the relevant penalty, they will be able to proceed with registration and/or suspension and/or change without any further penalty that governs the specific actions based on the relevant Directive as amended.

Those companies that have been established or registered under the Companies Law, the European Public Limited Liability Companies and Partnerships or their officers/partners, that have updated/re-registered the Beneficial Owner’s data, will not incur a penalty and will be able to register and/or suspend and/or make changes without any penalty that governs the specific actions based on the aforementioned Directive.

Period 3: from 01/03/2024 onwards

During this period, the following actions will be available:

  • Updating the Register of Beneficial Owners
  • Confirmation of Beneficial Owners
  • Mismatch
  • Electronic search in the Register of Beneficial Owners
  • Request for exemption from disclosure of information
  • Request for access to the data of a minor
  • Calculations of monetary charges where applicable

Our team can provide you with any assistance you might need with regards to the Register of Beneficial Owners. For any clarifications or questions, do not hesitate to contact us.

View original source here.

registration of ultimate beneficial owners Cyprus companies

Registration of beneficial owners data to avoid imposition of fines

The Department of the Registrar of Companies and Intellectual Property, following its announcement on the Functioning of the Register of Beneficial Owners in the interim solution, and in view of the imminent implementation of the final solution of the electronic system of the Register of Beneficial Owners, which is expected around the end of October 2023, invites all companies incorporated or registered under the Companies Law, Chapter 113, the European public limited liability companies (SE) and Cooperatives as well as their officers/partners, if they have not already done so, to register the details of their beneficial owners in the Register of Beneficial Owners of Companies and other legal entities maintained by the Department, in order to avoid the imposition of a monetary burden and/or the initiation of criminal proceedings due to non-compliance. The deadline is on 30th of September 2023.

In addition, following the start of the final solution, a period of one month will be granted for confirmation and completion of the information that has been registered in the system of the interim solution and will have been transferred to the final system by all entities. During this period, requests for information release exemptions should be filed along with reasons for exercising due diligence.

It is pointed out that, at the end of the one-month period, the automatic imposition of fines through the final solution of the electronic system of the Register of Beneficial Owners for the non-compliant companies will begin.

It is reminded that, regardless of the criminal responsibility or prosecution of any person, in case of non-compliance the company or other legal entity and each of its officials are subject to a fine of two hundred euros (€200) and a further fine of one hundred euros (€100) for each day of continued infringement with a maximum total charge of twenty thousand euros (€20,000).

Our firm has extensive expertise on the matter and would be pleased to assist your organization to meet its compliance requirements.

For further inquiries and assistance, please contact us and we will get back to you.

Tax incentive expenditure

TAX INCENTIVES FOR EXPENDITURE ON RESEARCH, DEVELOPMENT AND INNOVATION

On 18 May 2022, the government approved a tax deduction of 20% for legal entities and individuals investing in research, development and innovation, in a campaign to support the growth and competitiveness of Cyprus as a business and technology hub.

The tax deduction would be valid for three years, starting from tax year 2022. This is the second pillar of incentives followed by the incentives for headquartering being part of the scheme to attract foreign investments and businesses to Cyprus.

Following the recent geopolitical developments as well as other global factors, Cyprus has been experiencing an influx of high-tech and other companies which choose the island as a base for their operations or for relocating a part of those together with the respective human capital.

Cyprus is an emerging hi-tech jurisdiction, and such initiatives are likely to produce long term tangible results, assisting in both the island’s prosperity as well as that of the investors located here.