Cypriot Companies ask to strike them off the registry.

27.05.2014

 Almost 13,000 companies have asked to be removed from the registry, the Registrar of Companies stated. Spyros Kokkinos, the Head of the Registrar of Companies, said companies will be struck off in three months after their intention was published in the Government Gazette.

The Cypriot registry includes near 270,000 entities with hundreds or maybe even thousands being inactive for years.

Just 23% of the registered companies comply with their obligation to file an annual report. Kokkinos urged the companies, especially the ones that have not done so, to submit annual reports as soon as possible to avoid sanctions.

New company registrations reached 2,615 in the first quarter of the year, raising the total number at the end of March to 270,480, from 272,157 at the end of 2013 and 269,345 at the end of 2012.

Source: http://cyprus-mail.com/2014/05/28/thousands-of-firms-seek-to-be-struck-off-registry/

Expert’s opinion

 Cyprus calmly and confidently climbed in and out of the crisis last year. There was mistrust and fear among clients. Nevertheless, the banking sector operates at the same level, and the three creditors stated stable performance.

Cypriots always closely watch the level of service, introduce electronic document flow in the Registrar of Companies. The Revenue authority is especially careful with its check ups. It became possible to identify a large number of “dead souls” because of the data from revenue authority. It is possible that companies continue to operate, submitting null reports. This action may continue for the time being since the identification of company’s activity is not difficult at the moment. But the submission of the full reports earlier to recover accounting documentation can be not just expensive, but impossible!

The truth is simple and quiet obvious: “Pay your taxes and sleep well!” Although, the rate of corporate tax is 12,5% in Cyprus.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)