As you probably know, thousands of companies who set up business in Cyprus were struck off at the end of 2016 due to inactivity that spanned several years. We’re here to help you understand why these owners lost their active status and the fairly easy process for getting reinstated by the government.
When struck off, a business can no longer legally operate and all of their assets and transactions are frozen. Company owners, officers, and members will still be liable for any money owed, and payments will be enforced. A deregistered company still exists. It has not been liquidated or eliminated. In fact, interested parties like third-party creditors or the Inland Revenue Department can easily reinstate and sue the company and those that directed it.
There are two specific reasons a Cyprus company could be involuntarily struck off by the Cyprus Registrar of Companies. The first is if they fail to pay an annual levy fee of 350 Euros. The registrar stated in August 2016 that fees outstanding for over a year from the original due date would cause them to strike off, or deregister, the company. The second reason for involuntary strike off is when a company failed to file the necessary annual returns by the 31 December 2016, deadline. While 208,500 annual returns were required to file, only 100,450 actually did. The others were deregistered.
When your company was struck off, a notice was placed in the Official Gazette of the Republic of Cyprus. You or your creditors have 20 years from the date it was published to petition the Court for reinstatement. Once accepted, the Court issues an order of restoration and all audited accounts, pending annual fees, returns, and financial statements are submitted so the reinstatement can take place. Aside from the annual fees, you will be responsible for relevant expenses based on the amount of time you’ve been deregistered. If it’s within two years, you must pay expenses up to 500 Euros. If it’s been more than two years, you’ll be expected to pay up to 750 Euros. The petition will also include stamp duty fees.
Our law firm offers experienced attorneys who can guide you through the petition process. If you need to be reinstated, we will work with you step by step to complete the process in an organized and efficient manner, often taking just a few days or less. For more information, contact us today.