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Company Compliance

Dormant Cyprus Company: Obligations Without Trading

Review books, returns, registrations and outstanding balances before assuming inactivity removes compliance.

PA
Philippou Accounting & TaxEditorial publisher
3 min readPublished 26 September 2026

Quick answer

A Cyprus company with no trading is not automatically free from accounting, tax or Registrar obligations. Review its legal status, registrations, balances and filing requirements individually. Bank charges, loans, assets and unpaid liabilities still need records, and any audit or review treatment must be assessed under the applicable conditions.

Key takeaways

  • No sales does not mean no accounting entries.
  • Inactive status does not itself cancel VAT or employer registration.
  • The annual company levy was abolished from 2024, but other obligations remain.

Define what inactive actually means

Establish when trading stopped and whether the company still receives interest, holds investments, owns property, pays bank fees or has related-party balances. Review all bank accounts and contracts. A company described informally as dormant may still have transactions and income.

Prepare a closing balance sheet and reconcile assets, liabilities and equity. Confirm who will pay continuing administrative costs and how those payments are recorded. A director paying an invoice personally can create a balance that needs documentation.

Review each registration separately

List the company’s tax, VAT, employer and other registrations. Establish which returns or notifications remain required and whether a formal deregistration process is appropriate. Do not stop filing merely because no invoices were issued.

VAT deregistration can raise final-return and asset questions, while ceasing employment creates separate payroll tasks. Maintain evidence of effective cancellation dates and continue to address obligations that apply before those dates.

Maintain company compliance

Check annual accounts, Registrar annual returns, beneficial-ownership duties and the applicable assurance requirements. Do not assume every small inactive company qualifies for the same review or audit treatment. Keep the registered office and officers’ details current so official notices reach the right person.

The €350 annual company levy was abolished for 2024 onwards. That does not cancel earlier unpaid levies or replace annual-return filing fees, professional costs or tax obligations. Budget using the actual remaining work rather than a historical levy alone.

Choose retention or an orderly closure

Compare the reason for retaining the company with its ongoing obligations, balances and future plans. If closure is appropriate, resolve assets, creditors and registrations through the proper process. Leaving filings unanswered is not a controlled closure plan.

Use the strike-off checklist and separately track HE32. Keep a named person responsible for records and correspondence while the company remains registered.

Frequently asked questions

No. Review each registration and statutory obligation before changing the filing routine.

No. Its abolition does not remove accounting, tax or Registrar obligations.

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PA

Philippou Accounting & Tax

Editorial publisher

Philippou Accounting publishes practical Cyprus accounting and tax guides. Sources and substantive update dates accompany the articles. General information should be checked against the circumstances of each case; a named professional reviewer is identified only when that review has been confirmed.

This article is general information based on the Cyprus tax framework for 2026 and is not a substitute for tailored professional advice. Speak to us about your specific circumstances.

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