Abolition of Annual Levy
The parliamentary committee of Energy, Trade, Industry and Tourism shall meet on Tuesday the 17th of September 2019 to discuss, among others, the abolition of the Annual Levy of Euro 350 applicable to every Cyprus company registered with the Department of the Registrar of Companies and Official receiver in Cyprus.
It appears that the proposed law is supported by:
- The National People’s Front
- The Movement for Social Democracy
- Mr. Koulias
- Mr. Lillikas
- Mr. Giorgallas
- The Movement of Ecologists — Citizens’ Cooperation
- Ms. Theologou
With such a strong backing it seems that after all the levy might be abolished. However for an amendment to the Companies Law, Cap 113 to occur it is required that the Cyprus Parliament will vote on it and the president of the Republic of Cyprus to approve the proposed law.
Law 190(I)/2012 amended the Companies Law, Chapter 113 in 2012 and introduced the annual levy on Cyprus Companies. The annual levy applies to all companies registered with the department of the registrar of companies. The base rate is EURO 350 however and must be paid not later than 30th of June each year.
Any levy paid between 1st of January 20XX and 30th of August 20xx includes a penalty of Euro 35. If the levy is paid after 1st of September 20XX then the amount increases by Euro 140 (total of 490).
Although the levy payment is fairly recent within the legislative framework of Cyprus, its importance cannot be undermined. This is relevant in order to segregate active companies from dormant companies and in recent years the Registrar of Companies has struck off the registrar tens of thousands of Companies due to none payment of the levy. In turn legal practitioners routinely requested evidence of payment of the annual levy as a means to asses the compliance level of Cyprus Companies.
Foss v Harbottle Rule in Cyprus
Learn about the rule in Foss v Harbottle and its exceptions in Cyprus, including the ultra vires rule and the fraud on the minority rule.