New legal advancements around Cypriot company law are evident in the latest Cypriot Commercial Authorities’ announcements. Specifically, an important development is the fine imposition against Companies that submit their annual report late. Significant is also the release of guidelines for the entries that entities need to make to comply with the Cyprus Register of Beneficial Owners.
Based on Law 18(I)/2024, the Department of the Registrar of Companies and Intellectual Property has capped the fine for the late submission of the annual report to €150. The charge for overdue registration is €50 and €1 per day that the registration is delayed. Based on the new law, the maximum total amount for overdue registration is now capped at €150.
The law also contains a provision for the refund of any amount larger than €150, that was paid by Companies after 5 March 2024. The refund will be returned depending on the method of the initial payment. For example, for online payments that were made by card, the amount will be returned to the recipient’s card. For payments made to the Fund of the Registrar of Companies and Intellectual Property Department, the excess amount will be refunded to the applicant’s Bank Account. For that, the recipient will have to present: proof of payment, the authorization form for payments from the FIMAS and a photocopy of the statement of the Bank Account to be credited.
While entities are presented with a more beneficial charges regime, the Department of Registrar has also issued a manual for the completion of the Beneficial Owner information to the final solution system. The register was created to suffice EU legislation that requires transparency regarding information of entities’ beneficial owners. The Guidance is 68 pages long with detailed instructions for the registration of beneficial owners.
Apart from guidance on how to use the final solution system, the manual also provides the legal framework for the registration including the definition of Beneficial Owners, the purpose of the guidance, explanatory notes on the BO register, the list of information that must be filled and specific instructions on Investment Funds. Significant is also the provision of the timing of filings and the relevant penalties for failure or delay in filing. The prescribed time for submitting/ confirming the relevant information has been extended until 31 March 2024. Failure to comply by 1 April 2024 will result in a fine of €200 by the entity and each of its officers.
The new developments indicate an intention by authorities to facilitate procedures for entities. The capping of the charges for overdue submission of the HE32 form benefits solely the companies that are no longer required to pay extraordinary amounts in fees. In addition, the guidelines were published for the clarification of the procedures and contain valuable information regarding their legal background and timelines.
At Christy’s, we provide our clients with advice, support and end expertise on all aspects of company and commercial law to enable them to make a success out of their business and avoid unnecessary contract disputes. Our very active and dynamic corporate team will tailor their approach to your company’s specific needs and help you achieve any deal. Contact us to learn more about corporate developments in the legal sector.
