What are the components of the annual renewal fees?

The annual renewal fees consist of two main parts – mandatory fees and optional fees. The mandatory fees cover the absolute minimum necessary to maintain the company in good standing. The optional fees are charged for services which help the company operations, but are not absolutely essential. Usually, the type and the amount of the optional fees depend on the exact configuration of the company. The optional fees may be calculated on time-spent basis or as a fixed agreed charge.

The mandatory fees always include (a) the Cyprus Annual Company Fee, and (b) the Registered Office and Secretary fee. In some cases, depending on the ownership and management structure of the company, an annual compliance fee will also be charged, for time-spent while updating the compliance file of the entity.

The Annual Company Fee in Cyprus is essentially a fixed state service charge paid by all companies. It is in addition to any corporate tax liability, that may or may not accrue depending on the company business.

The Registered Office and Secretary fee is a professional fee. It is paid to the licensed Company Administrator for its role, effectively, as an official point-of-contact between the company and the Cyprus government. This fee also covers the usage of the office address as the legal address of the Cyprus company, in case the company has not yet obtained its own separate premises. The Registered Office / Secretary fee also covers the minimum adminstrative services necessary to comply with the regulations of the Cyprus Companies Law, including the filing of the annual administrative returns.

The optional fees would be payable for any additional company management services. Such optional services would include (a) directorship services; (b) shareholder services; (c) accounting services; (d) bank account signatory services; (c) audit fees; (d) miscellaneous legal and managerial services, billed either on a fixed-charge or time-spent basis.

For the sake of simplicity, the fixed annual renewal fees are normally invoiced once a year, and are payable in advance, for the next year. The accounting fees and company management fees can be invoiced separately, on monthly, quarterly or yearly basis, depending on volume and complexity.