Alterations on Cyprus Registrar’s services | Major legislative reforms that come into force

The Cyprus Registrar of Companies office recently announced some changes regarding the procedures, fees and processes that affect Companies in Cyprus and were implemented in order to make the business environment more competitive.

Simplifying Procedures:

1. Eliminating the floating fee (0.6%) on the nominal/authorised capital during the registration of a company, resulting the reduction in the cost of registration of a company. The ultimate goal of this legislative reform is to improve Cyprus’s competitiveness as an international business centre.
2. Deletion of the floating fee (0.6%) on the difference after an increase in the company’s nominal/authorised capital, which is expected to contribute to the recovery of investments and the further development of enterprises.
3. Each company may have a secretary appointed at any time. Consequently, a company (including the foreign company) may not appoint more than one secretary or may have secretaries jointly.
4. Abolition of the obligation to attach a contract where the allotment of shares of a private company are paid in part or in full (HE12).
5. Abolition of the attachment obligation in the company’s annual return report that a table/list of the names of the various areas of activities.
6. Assigning the power of omission/deletion of the word LTD to the Registrar of Companies (eliminating the engagement of the MECIT (Ministry of Energy, Commerce, Industry and Tourism) in the process). Implemented after the decision of the Council of Ministers on 20^th of June 2018.
7. Simplify the process of defining forms through a Minister’s Interim Order against the creation of regulations deposited with the House of Representatives. Implemented fifteen (15) days after the publication of the legislative package in the Official Gazette (1/1/2019).

Keep an up-to-date registry:

1. Introduction of the authorisation to the Registrar of Companies to delete from the Registry a partnership or business name that fails to submit the documents required by law after 6 months of being sent notice of compliance.
2. Introduction of the provision for the Court of Justice to give instructions for verifying the Registry kept by the Registrar of Companies, the payment of the company’s due fees to the Registrar of Companies and the payment of the costs of the Registrar for the process of reinstatement the company to the Registry, when issuing a court order for the reinstatement of the company to the Registrar of Companies.
3. Reinstatement of the company by a court order from “anyone who has suffered damage” from the company’s actions before the struck-off.
4. Deletion of a company upon request of the directors only if the company has fulfilled its obligations arising from the Companies Law.
5. Defining the deadline within which the changes will be made in case of foreign companies (15 days) and involving changes in a Memorandum or Articles of Association, directors or secretary, address of the registered office, details of persons representing the company and/or accepting the service of process.

* All the above have been implemented and published in the Official Gazette (legislative package) on 18/12/2018.

If you have any questions regarding the above changes, please don’t hesitate to contact our Corporate Services department for more information and clarifications.

By:Maria Hinni
Senior Associate | Commercial & Corporate
A.G. Paphitis & Co Law Firm