ANNUAL LEVY TO THE REGISTRAR OF COMPANIES

All limited liability companies registered in Cyprus are required to pay the Annual Government Levy of €350 from 2012. In case of companies belonging to a group of companies the maximum amount of Levy that is payable by the group is €20.000. This amount is equally spread between all the companies of the relevant group. Companies incorporated until 30 June are required to pay the Levy for the year of their incorporation, whereas, companies incorporated after 30 June are required to start paying the Levy from the next year. (The Annual Levy was introduced from the year 2011 with some exemptions concerning the first year of incorporation for all the companies, the dormant companies, and the companies with no assets or any company with assets located in the occupied areas of the Republic of Cyprus).

The Annual Levy is payable to the Registrar of Companies by 30 June of each year. If the Levy is paid within two months of the due date (31/08) a penalty of 10% is imposed (must pay €385) which increases to 30% (must pay €490) if the Levy is paid within five months of the due date (30/11). (For the year 2011 the deadline was 31/12/2011 and for the year 2012 was 30/06/2012. For the companies no longer qualify for exemption due to the changes, the deadline for payment was 31/05/2013.)

If the Levy and the applicable penalty for late payment are not paid within five months of the due date, then the Registrar of Companies proceeds to strike off the company from the Register. Reinstatement on the Register is possible and if done within two years from the date of strike off , the required fee to be paid is €500 whereas after two years the fee to be paid increases to €750.