Cyprus – Reduction of fine for failure to deliver annual reports
By: H. Priority Trusts Services Ltd
The Plenary has approved a bill to amend the Companies Law, aiming to reduce the maximum financial penalty imposed on a company for failing to submit its annual report to the Registrar of Companies and Intellectual Property within the specified deadline.
The penalty will be reduced from the current five hundred euros (€500) to one hundred and fifty euros (€150).
The necessity for this proposed regulation, according to the proponents, arises particularly from the inability of a large number of small and medium-sized enterprises to timely submit their annual reports. This issue occurs because, along with the report, they are also required to submit the audited accounts of each company for the year preceding the year of the annual report's registration. Often, the preparation of these accounts is completed after the deadline for submitting the annual report has passed.
Due to this, companies end up registering their annual reports late and subsequently face financial penalties.
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