In continuation to our previous newsletter dated 04 November 2019, please note that on April 7, 2021 the Companies (Amending) Law 43(I) of 2021 was published in the Official Gazette of the Republic of Cyprus, introducing changes in relation to the enforcement date of the administrative penalties to be imposed on each company in case of failure to comply with the Annual Return requirements set under the Companies Law, Cap.113.
Each company registered in the Republic of Cyprus must submit an Annual Return (otherwise known as form HE32) to the Registrar of Companies accompanied with the company’s audited Financial Statements of the preceding year. The Annual Return must be submitted to the Registrar of Companies within 28 days from the Annual General Meeting of the company and provides an overall view of the company’s details as at the date of the General Meeting.
As of June 1, 2021, the below administrative penalties will be imposed on each company in case of failure to comply with the above statutory requirements:
- €50 one-off penalty; plus
- €1 for each day of delay for the first 6 months; plus
- €2 for per day thereafter with a maximum penalty of €500.
It is therefore necessary that all companies finalize pending audited Financial Statements up to the year 2020 and submit outstanding Annual Returns to the Registrar of Companies in order to avoid any penalties being incurred.
The author of the article is Zoe Christodoulou.
Zoe is the Risk & Compliance Officer at Royal Pine & Associates. She is a qualified lawyer with experience in the financial industry and holds the Advanced Certificate of CySEC.
* This publication has been prepared as a general guide and for information purposes only. It does not purport to be comprehensive or to render legal advice.