CYPRUS: Companies owe EUR 160 mln in unpaid annual registration fees

Almost half of the companies listed with Cyprus’ Registrar of Companies have not paid their registration premium for the past four years, with the state losing out on tens of millions in income.

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Nine out of 10 companies (90.2% or 185,639 out of 205,824) have yet to pay the premium for 2018.

With the annual premium standing at EUR 350, it is estimated that contributions amounting to approximately EUR 160 mln for the years 2015-2018 have yet to be received by the government.

Money owed to the state from companies is to increase, according to legislation firms that do not pay the annual fee of EUR 350 by the end of June are gradually burdened with additional costs

This fee is paid once a year and is necessary for a company to remain on the register, while the registration of the new companies are increasing.

According to the information provided by the Registrar of Companies in his reply to a question posed by Green MP George Perdikes, 84,864 out of 192,564 companies did not pay the registration premium in 2017. That means 44% have yet to comply.

Accordingly, 40.5% of the 178,957 registered did not pay their premium for 2016. The respective percentages of companies that did not pay the premium for previous years are 35% for 2015 and 34.5% for 2014.

Data provided by the Registrar’s office shows 177,538 companies were delisted in 2018, while registrations hit a six-year high in 2018 with 13,244 new companies enrolling. However, new company registrations are some way off the 2012 level, when 17,999 new companies registered in Cyprus.

The number of companies registered in Cyprus is expected to reach 215,525 dropping from 217,588 in 2017.