Companies in Cyprus must annually confirm the details of their ultimate beneficial owners or report any changes to such information. The information must be submitted online through the Registrar of Companies website from 1 October to 31 December 2024.
Upcoming changes
On 21 November, the Cypriot parliament adopted an amendment reducing the fine for late submission of beneficial ownership information from the current 100 euros to 30 euros per day of delay. The maximum fine will also be reduced from 20,000 euros to 5,000 euros.
Under the current rules, companies that fail to submit the information within the specified period are subject to a fine of 200 euros. The fine for each subsequent day of delay will be 100 euros (30 euros after the amendments come into force), up to a maximum of 20,000 euros (5,000 euros after the amendments).
|
Non-compliance |
Fine |
|
|---|---|---|
| Currently | Under new rules | |
|
Non-submission of UBO information before 31 December |
€200 |
€200 |
|
Each subsequent day of delay |
€100 per day, maximum €20,000 |
€30 per day, maximum €5,000 |
The courts will have the right to impose the fines. If a company representative fails to submit or confirm the information on the company’s beneficial owners before the end of the calendar year, the Registrar will have the right to apply to the court.
According to available information, the Cyprus authorities intend to write off fines imposed in 2024 for companies that did not submit the UBO information on time.
The beneficial ownership register in Cyprus
Cypriot companies and partnerships must collect information about their beneficial owners and submit it to the register via the governmental online portal. The central register of beneficial owners has been in force in Cyprus since March 2021, following the alignment of local anti-money laundering legislation with the relevant EU directive.
A beneficial owner is any individual(s) who ultimately owns or controls a legal entity through direct or indirect ownership (25% plus one share or ownership interest of more than 25%) in such a legal entity or exercises control over it through other means.
A company must submit the following UBO information to the register:
- name, surname, date of birth, nationality and residential address;
- the nature and extent of the beneficial interest (including share percentage, voting rights or the nature of significant influence or control);
- number and type of personal identification document (passport, ID card) and country of its issuance;
- the date on which the natural person was entered in the UBO register;
- the date of changes to the particulars of the natural person or the date on which the person ceased to be an ultimate beneficial owner.
Key takeaways
Despite the noticeable reduction in fines, we recommend submitting the information required by law to the register of beneficial owners on time, i.e., before 31 December of the current year. This will help avoid claims from regulatory authorities and fines.
Accrued fines and penalties increase the cost of servicing the company, and the fines paid do not reduce its taxable base.
Unpaid fines, pending obligations, or legal proceedings may also complicate redomiciliation to another jurisdiction should the company take such a decision. Cyprus Registrar of Companies will issue permission for redomiciliation only if the company pays all fines and taxes and complies with other requirements.
