In order to carry out a Cyprus company strike off / Cyprus Company deregistration, the Cyprus Company:
1) Firstly pays off its creditors.
2) Any debit balances / balances due by related parties are collected / paid off.
3) The Cyprus Company’s balance sheet ultimately ends up with retained earnings / share capital and bank or cash balances. Any amount of cash or debtors represented by the issued share capital normally does not create any problems.
4) Distributes retained earnings to its shareholders.
5) If the Cyprus Company belongs to a group of companies, related party balances may be transferred through journal entries to other companies via reorganisation without the need of converting anything into cash or cash at bank. Care is also needed in case of decision to write off or waive any balances due by or to the Cyprus Company as this may create Cyprus tax consequences.
6) The Cyprus Company prepares all financial statements and submits its tax returns up to the date of strike off / deregistration decision, the Cyprus tax department examines and agrees that there is no tax liability or if there is a tax liability is fully settled. The tax department then finally issues a final tax clearance.
7) If the Cyprus Company is registered for VAT purposes, it should be deregistered.
8) All Cyprus Company’s directors sign a solvency statement (affidavit). The declaration is sworn before a notary. The affidavit is a confirmation the company has no assets or liabilities whatsoever no longer carries any activities and does not intend to carry any in the future.
9) A notification to strike off the Cyprus Company signed by the directors is filed with the Cyprus Registrar of Companies stating that the Cyprus Company ceased operations and currently has no assets or liabilities.
10) The Cyprus Registrar of Companies within one month publishes in the Cyprus Gazette that the Cyprus Company will be struck off / that the Cyprus Company’s name will be removed from the Cyprus Registrar of Companies register within three months.
11) After the elapse of the three months and provided that no person or entity has brought any objection against the Cyprus company, the Cyprus Registrar publishes in the Cyprus Gazette Cyprus Company’s strike off / deregistration.
1) The whole process usually takes 6 -9 months.
2) Any Cyprus Authority may intervene in the process if any of the above procedures is not followed.
3) Before the elapse of twenty years from the date of the publication in the Official Gazette, the Company’s name can be reinstated by a decision of the Court at the request of the Company, a member or a creditor.
4) In case local directors have been appointed by us, it is our firm’s policy that directors should resign prior to the application to the Registrar for the Cyprus Company strike off. Designated directors who will be signing the relevant documentation should be appointed by existing shareholders.
Please contact us for a free personal consultation at [email protected]. All information will be treated in the strictest confidence.
Published: April 2016
PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.