Insider Economy One in two companies fail to pay annual registration fee

One in two companies fail to pay annual registration fee

Public funds in Cyprus seem to suffer huge losses annually from the non-payment of the company fee. Specifically, more than 50% of the island’s companies haven’t paid this fee over the last four years, according to the Registrar of Companies.

Specifically, only one in two registered companies complied with this obligation to the state from 2015 until today, despite the Registrar’s constant recommendations. The €350 fee’s payment deadline is June 30, and this year was no exception as far as non-compliance goes.

At the same time, the law stipulates additional costs with any delay in the payment of this specific annual fee which concerns the maintenance of a company in the Republic’s official registry.

According to latest figures released by the Registrar, only 99,283 companies out of a total of 220,614 paid the fee by June 30, 2019.  That is, only 45% of registered companies have actually met their obligations. By July 9, 2019, only 113,150 companies out of a total of 216,239 paid the annual fee for 2018. Thus, the percentage of compliant companies is 52.3%.

For 2017, out of a total of 217,588 only 114,878 companies (that is 52.8%) paid the fee, and out of a total of 208,493 registered companies in 2016 only a total of 115,905 or 55.6% paid the €350 fee. And up until July 9, 2019, only 121,107 out of a total of 227,849 registered companies paid their fee for 2015. Thus, the compliance rate is 53%.

Both the Registrar of Companies and the Ministry of Commerce have to find a solution to this problem since the loss of public funds is huge, analysts said. And so is the question of justice towards companies that do meet their obligations. Rough calculations – excluding the cost of fines due to delays – show that public funds are in loss of some €140 million due to this non-compliance.

At the same time, the Registrar has published a list of companies at risk of getting deleted unless they pay their dues.

 

Read more:

https://in-cyprus.com/1003-new-companies-registered-in-august/

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