Your Cyprus company will be struck-off the Registry for non-compliance with its statutory duties. Failure to submit tax returns will trigger administrative penalties. Failure to pay any tax due will cause late charges to accrue and may result in litigation.
Regardless of the fact that a company has been struck-off the Registry for non-compliance, it still remains liable for any due and unpaid fees with all its remaining assets. Such company also remains liable to all its debts and obligations. Any creditor may legally raise a claim against a struck-off company for debts and pursue the collection of those debts through litigation.
A struck-off company may not legally continue to trade or enter into any new transactions, and its directors, shareholders, managers and owners may not enter into any transactions with the assets of the Company. If they do, they may be personally liable for any debts or legal consequences resulting from such transactions. If the struck-off company is operated by appointed third-party managers for and on behalf of a beneficial owner and under his instructions, the personal liability will also extend to the beneficial owner. Essentially, striking-off a company means that all its assets are legally frozen until the entity is restored in good standing – or until it’s legally dissolved.
It is possible to restore a company after it has been struck-off the Registrar, but substantial government fees will apply for restoration. These reinstatement fees will be in addition to all past-due renewal fees and penalties. In addition, substantial professional fees will also apply if a struck-off company must be reinstated in good standing.