Company levy

On 26 August 2011 the Cyprus Parliament passed a new law No. 117(I)/2011 by which Cyprus Companies Law is amended  with the incorporation of a new section that provides that all Cyprus companies are obliged to pay an annual fixed levy of Euro 350 (the “Levy”) to the Cyprus Registrar of Companies (the “Registrar”). For groups of companies the levy will not exceed the amount of Euro 20.000,00.

In particular, the Levy must be paid by 31 December 2011 in relation to the year 2011 and for each subsequent year by 30 June.

Penalties will be imposed in the event of late payment. In case the Levy is paid within two months from the due date then a penalty of 10% is payable to the Registrar which will be increased to 30% if the Levy is paid within a period of five months from the due date.

If the Levy is not paid within five months then the Registrar will remove the company from the registry. However, a company could be restored to the registry within a period of two years if the amount of Euro 500,00 is paid for this purpose. It is noted that for companies that apply for restoration to the registry after the end of the two year period then the amount of Euro 750,00 will need to be paid for this purpose.

Exemptions:

A company or companies or group of companies are not required to pay the levy:

in the year of its incorporation and in respect of the year of incorporation; and

when the company or companies or group of companies are considered to be dormant company/ies which do not hold any asset or if the hold assets are located in place where the Republic of Cyprus has not control

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