What happens when you strike off a company in Cyprus?

In Cyprus, the strike-off formally terminates a company under the purview of the Cyprus Registrar of Companies: 

1. The company ceases to exist legally

Once the strike-off is finally passed and entered as a record, the company ceases to be a legal entity. It cannot operate, hold property, make any contracts, or carry on any business activity.

2. Business activities must stop.

Prior to this application, the company must:

• Cease all trading or operational activities.
• Have no assets or liabilities.
• Settle all taxes, fees, and social insurance obligations.

3. Voluntary against involuntary strike-off

• Voluntary: The directors or shareholders of the company initiate the strike-off because the company is dormant or unnecessary any longer.
• Involuntary: For non-submission of annual returns, financial statements, or fees, the company might be struck off by the Registrar.

4. It’s not the same as liquidation

Striking off is a cheaper and less complicated way of closing down dormant companies, but contrary to liquidation, it offers no protection from unresolved liabilities. Creditors, in fact, can apply to have the company restored in order to proceed legally.

5. Restoration possible

A company may be restored in the register within 20 years, usually by a court order, especially for a good cause such as unresolved debts or legal claims.