Another incentive for making business in Cyprus: The Council of Ministers of Cyprus decided to abolish the annual levy paid by the Cyprus companies
During the last few years, Cyprus has been evolving in many sectors and has undoubtedly become a business hub, attracting talents and fresh ideas from around the world. Yesterday, the Council of Ministers of the Republic of Cyprus, in an attempt to make the island an even more attractive place for people to set up their business, decided to abolish the annual levy that was required to be paid by each company registered with the Cyprus Registrar of Companies (hereinafter the “ROC”) on an annual basis. This decision is applicable from 2024 onwards.
The payment of the annual levy was a statutorily imposed obligation of companies registered in Cyprus and failure to comply with it could cause the striking off of a company from the register kept by the ROC. In practice, this decision means that the companies that are registered with the ROC would not need to pay the amount of €350, as was required until today pursuant to section 391 of the Cyprus Companies Law, Cap. 113 (hereinafter the “Companies Law”). In light of the abolishment of this statutory obligation, it is expected that the Companies Law would also be amended soon so that any references to the obligation for the payment of an annual levy are deleted and the provisions in relation to the striking off of a company are amended accordingly to envisage this abolishment.
It is therefore evident that this decision made by the Council of Ministers aims to make things easier for a company to operate in Cyprus, removing such statutory obligations which imposed additional burdens to companies. This, along with the other benefits offered by Cyprus legislation, including the advantages offered by the local tax regime and the modern and flexible Companies Law, maintain Cyprus as a very attractive jurisdiction for the companies' establishment.
We remain at your disposal in case you are thinking of setting up a Cyprus company, or starting your own business in Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
