We would like to inform you that on the 21^st of December 2012 the Cyprus Parliament passed a Law regarding the special levy on Cyprus Companies. A levy has been imposed on Cyprus Companies for the amount of EURO 350 per annum.

A.        Special Levy on Companies

Law 190(I)/2012 amended the Law 117(1) of 2011 on Company Law by which introduced the annual levy on Cyprus Companies for the amount of EURO 350.

The levy of EURO 350 is payable as follow:

• All the Cyprus Registered Companies (either dormant or not) should pay the amount of 350 EURO as from the year of its registration an on;

• Any subsequent year the levy must be paid not later than 30^th June of each relevant year;

            (1)       Penalties

In case a company delays to pay the levy as stated above but proceed with the payment within:

• two (2) months from the due date, a penalty of 10% is imposed;

• five (5) months from the due date, an additional penalty of 30% is imposed;

            (2)       Striking off from the Registrar of Companies’ record

Despite the above provisions, in case a company will not comply with the payment of the levy and any penalties which might occur, the Cyprus Registrar of Companies without notification will strike off the company from its record in accordance with the provisions of the Cyprus Company Law.

However the company may be reinstated automatically and the Registrar will proceed with the correction in its record if:

• within the period of two years, from the struck off the amount of EURO 500 is paid;

• after the expiration of two years, from the struck off the amount of EURO 750 is paid;