CONSEQUENCES OF LATE FILINGS OF ANNUAL RETURNS TO THE CYPRUS REGISTRAR OF COMPANIES
Imposition of administrative penalty for late filing of Annual Returns
As of 21/04/2020, a company that fails to submit its Annual Return (HE32) within a timely manner will be subject to a fine of fifty euro (€50) plus one euro (€1) for every day for which the default continues within the first six months plus two euro (€2) for every day thereafter for which the default continues with a maximum fine of five hundred euros (€500) for each default.
For example, if the date of drafting of the Annual Report is 2/4/2020, it should be filed within twenty-eight (28) days, that is, by 30/4/2020. If registered on 31/12/2020, the registration is subject to a financial charge of two hundred fifty-six euros (€ 356), calculated as:
€ 50 one-time charge imposed on 1/5/2020
€ 1 X 31 (days) = € 31 for May
€ 1 X 30 (days) = € 30 for June
€ 1 X 31 (days) = € 31 for July
€ 1 X 31 (days) = € 31 for August
€ 1 X 30 (days) = € 30 for September
€ 1 X 31 (days) = € 31 for October
€ 2 X 30 (days) = € 60 for November
and € 2 X 31 (days) = € 62 for December.
Criminal prosecution of company and officials
If the company fails to comply with the timely filing of the Annual Return and respective financial statements, the company and any of its officials responsible for the omission, is liable for committing a criminal offense and, if convicted, is subject to a fine of up to €42.
Imposition of administrative fines
If the company fails to comply with the submission of the Annual Return and financial statements, the Registrar has the right to impose and administrative fine which does not exceed the amount of €8,543. This administrative fine has been abolished as of 21/04/2020.
Failure to file the company’s Annual Report and financial statements, will result in its strike-off by default from the Registrar.