The Companies Law (Cap.113) has recently been amended to provide for the imposition of administrative fines for the late submission of the Company’s Annual Return (HE32). The new charges will be effective from 18 December 2019.
Based on the latest legislative changes applicable as from 18 December 2019, an increase in administrative fines for late submission of a Company’s annual return is imposed, as follows:
• €50 one-off, plus
• €1 for each overdue day during the first 6 months,
• €2 for each day after the first 6 months with a maximum fine of €500.
Regarding the Annual Reports (HE32) from 2018 and backwards should be submitted by 18 December 2019 (the day the new charges will apply). Otherwise, the new charges will apply.
The Annual Report (HE32) is prepared and a copy thereof is submitted for registration to the Registrar of Companies within twenty-eight (28) days of its drafting date. (e.g. the Annual Report (HE32) dated 31 December 2019 should be submitted by 28 January 2020).
It is important for all companies to have up-to-date audited financial statements to be filed together with the annual return in order to avoid penalties. It should also be reminded that it is good practice for AGMs to take place in Cyprus ensuring attendance of all interested parties.