Part 2. Post-Registration Company Maintenance in Cyprus: Reporting, Requirements and Obligations

D. Korotych

Consulting Manager

22 April 2025

Part 2. Post-Registration Company Maintenance in Cyprus: Reporting, Requirements and Obligations

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In Part 1, we covered the key tax obligations of companies in Cyprus, including VAT registration and reporting.

If you missed it, we recommend starting here: Post-Registration Company Maintenance in Cyprus: Reporting, Requirements and Obligations – Part 1

Now, let’s move on to other essential compliance requirements that help ensure your company operates in full alignment with Cypriot regulations and remains in good legal and operational standing.

7. Post-Registration Company Maintenance: What You Need to Know

Registering a company in Cyprus is just the first step. To ensure that the company operates in compliance with the law and avoids fines, it must be regularly maintained — both from a legal and technical standpoint.
Below are the key elements of ongoing company maintenance.

1. Local directors / shareholders

Appointing Cyprus-resident directors or shareholders helps to:

provide on-the-ground representation, which many banks and regulators require;
satisfy formal corporate-governance rules and demonstrate genuine business substance in Cyprus;
enhance counterparties’ trust and simplify dealings with government authorities.

All persons acting on the company’s behalf must undergo mandatory AML checks and bear personal responsibility for the legality of their actions.

2. Registered Office Address in Cyprus

Every company is required to have a registered office address in Cyprus.
This is the address:

that appears in the public registry,
where official correspondence is sent,
used for tax and legal purposes.

📦 Often, this address is provided by the company’s service provider (e.g., corporate secretary or legal representative).

3. Secretarial Services

A Cypriot company is required to have a secretary — either an individual or legal entity — responsible for managing corporate documentation and liaising with authorities.

Secretary’s responsibilities include:

Preparing and filing the Annual Return (HE32);
Maintaining registers of shareholders, directors, and beneficial owners;
Registering changes to the company structure (e.g., director or address updates);
Preparing meeting minutes and resolutions.

📌 While the role of the secretary may seem formal, it is crucial for ensuring corporate compliance.

4. Annual Corporate Documentation Updates

At least once a year, the company must:

Update registers of directors, shareholders, and UBOs;
Review key corporate documents — Memorandum, Articles of Association, contracts;
Ensure the company has not lost its good standing.

Many companies neglect this, which later leads to issues with banks, licensing, or audits.

5. Ongoing Compliance Support

Beyond formal maintenance, there are often requests such as:

Providing a certificate of good standing;
Preparing documents for a bank or business partner;
Making amendments to the Memorandum;
Adding new shareholders, and more.

For this reason, it’s beneficial to have long-term support from a service provider, rather than handling documents on a case-by-case basis.

8. Working with Banks and Payment Systems

After registering a company in Cyprus, many entrepreneurs face difficulties opening a bank account. Due to increased international financial monitoring, banks have become more cautious, and the account opening process is now longer and more formalized.

Opening a Corporate Account: What to Expect

Banks in Cyprus or the European Union may request the following documents:

Company certificates (incorporation, directors, shareholders);
Memorandum and Articles of Association;
Copies of passports of the beneficial owners and directors;
Proof of residential address (utility bill, bank statement);
Business plan or a description of company activity;
Agreements with key clients or counterparties;
Proof of income sources (proof of funds).

📌 Important: The bank will evaluate not only the documents but also the realistic nature of the business, its connection to the declared countries, and the transparency of financial flows.

An overview of account opening specifics for foreign beneficiaries and directors: documentation requirements, customer reliability criteria, and what influences the bank’s decision can be read in the article Cyprus Bank Account For non Residents.

EMIs/PSPs as Alternatives

Due to the complexity of dealing with traditional banks, many Cypriot companies opt for electronic payment systems:

EMIs (Electronic Money Institutions): Wise, Revolut, Payoneer, etc.
PSPs (Payment Service Providers): Paysera, iCard, Intergiro, etc.

These providers also conduct KYC/AML checks, but the process is generally more streamlined than in traditional banks.

We also recommend reading the article Cyprus Bank Account Opening Services. A comprehensive guide to the stages of account opening, bank requirements, and how to prepare for due diligence. Ideal for saving time and avoiding common mistakes.

Factors That Influence a Bank’s or Provider’s Decision

Reputation of the beneficial owner and company structure;
Type of activity (high-risk areas like gambling, crypto, forex, adult can complicate account opening);
Transparency and proper documentation of operations;
Presence of a website, contracts, and real clients/counterparties.

Recommendation: Prepare documents in advance and consult a professional provider with experience working with financial institutions.

9. Employee Reporting and Social Contributions

If a company hires employees (including a director receiving a salary), it must register as an employer, register employees with social authorities, and monthly withhold and pay applicable taxes and contributions (PAYE, Social Insurance, GESY).
Reporting is done through electronic systems, and compliance with labor law is required.

If the company does not employ anyone, these obligations do not apply. However, a director cannot receive an official salary without registration.

Key Takeaways: What to Remember After Company Registration in Cyprus

Company registration is just the beginning. The real responsibility starts after obtaining the certificates and opening bank accounts.

Keeping your company compliant and in good standing is a continuous process that includes:

Regular reporting (VAT, corporate tax, financial statements);
Updating corporate records (directors, shareholders, UBOs, constitutional documents);
Complying with AML and internal compliance standards;
Maintaining relations with banks or payment providers.

Why it matters:

To avoid fines, account freezes, or removal from official registries;
To build a positive reputation with banks, partners, and investors;
To be ready for audits, inspections, or license applications;
To maintain “good standing” status.

Tip: Work with experienced consultants who can take over the technical and legal responsibilities.
This allows you to focus on business growth, not bureaucracy.