FRIDAY, 25 JUN 2021

 

CONNECT

Facebook Linked In Twitter
gold_june_leaderboard
GloriaJeans_266x90px
IMH LTD

Angela Merkel: Europe Is "On Thin Ice" As The Delta Variant Of Covid Spreads

Themis Papadopoulos Elected Vice Chairman Of International Chamber Of Shipping

IMH LTD

SERVICES

brought to you by Barclays

EU Directive 2019/1151: Formation of Companies and Registration of Branches to be Completed Fully Online

EU Directive 2019/1151: Formation of Companies and Registration of Branches to be Completed Fully Online

The European Parliament and the Council of the European Union on 20 June 2019 decided to amend the existing Directive in regards to the rules and procedures on the formation of companies, registration of branches, and filing of documents and information by companies and branches (“Online Procedures”) by issuing the Directive 2019/1151 (the “Directive”).

The Directive imposes the obligation on Member States to set out procedures permitting the formation of companies, registration of branches, and filing of documents and information, to be done fully online.

Member States should, however, be able to decide to make some or all Online Procedures mandatory.

The physical presence to notaries or other similar officials will no longer be necessary and thus, company formation, branches registration, and filing of documents and information will be achieved online.

In this respect, the Directive prohibits Member States from imposing a requirement to obtain prior authorization or license for Online Procedures unless this is required for the company’s special activities by national law.

Nevertheless, notaries or lawyers may be used in the online process only in order to control the identity and legal capacity of persons seeking to form a company or register a branch or to file documents or information, to avoid fraud or company hijacking  and to provide safeguards for the reliability and trustworthiness of documents and information contained within national registers. However, such involvement should not prevent the completion of the procedure in its entirety online.

In the case of Cyprus, lawyers and the Court Registrar are involved in the process of formation of companies. Currently, an affidavit must be signed by a lawyer in the presence of the Court Registrar and submitted along with the company documents to the Registrar of Companies to achieve company registration.  It remains to be seen how the Directive will affect this process currently followed in Cyprus.

Although lawyers may still have a role to play as per the Directive, checking the legality of the process, the Court Registrar seems to become redundant.

In regards to the time frames set out by the Directive the following apply:

i. transposition of the provisions of the Directive to national law shall be completed by 1st of August 2021 with the possibility of one-year extension; 
 
ii. the process of online registration shall be completed within ten (10) days from the date of payment of the registration fee or from the date of complying with online registration formalities. 
 
Generally, the Directive purports to streamline the company law so as to achieve efficiency, cost and time transparency in an era where technology is constantly developing and digital world is rapidly evolving. 
 
 

Maria Pavlou

Corporate – Legal Department

Associate lawyer

Kinanis LLC

[email protected]

 

MORE ON SERVICES

Copper Powers The Smart City Revolution

As municipalities across Cyprus, one after the other, announce plans to become ...

Melco Cyprus Supports Local Tourism – Promoting Cultural Heritage Through “Heritage Gates” Project

At a ceremony hosted today at Limassol, Melco Cyprus, operator of Cyprus Casinos (C2) and ...

EY: Global Executives Concede To Challenges In Realizing Divestment Benefits

Despite an anticipated rebound in corporate divestment activity, global executives admit ...

FROM AROUND GOLDNEWS

   

Airports To Accept EU Digital COVID Certificate As Of July 1

The Cabinet that convened Wednesday, amended the Action Plan for the operation of airports to include the EU Digital COVID Certificate (EUDCC) which will be ...
   

International Joint Venture Undertakes Adviser's Role For DEFA Business Plan

An international joint venture undertakes the adviser`s role for the Natural Gas Public Company (DEFA) business plan. DEFA announced on Thursday that the ...
   

CySEC: 25 Years Committed To Market Surveillance, Supervision And Investor Protection

The Cyprus Securities and Exchange Commission (CySEC) celebrates its 25th anniversary and on this occasion it will host an online conference on Wednesday, 14 ...
   

Angela Merkel: Europe Is "On Thin Ice" As The Delta Variant Of Covid Spreads

German Chancellor Angela Merkel has warned that Europe is "on thin ice" as the Delta variant of Covid spreads on the continent. Her warning came ...
   

The Yianis Christodoulou Foundation: Remarkable Support By Anna Vissi, Amara And Elysium Hotels For The Gala Dinner On The 8th Of July

As the preparation of the exclusive event being organized by Mr John Christodoulou and The Yianis Christodoulou Foundation for the benefit of the children ...
   

InvestEU: The European Plan Mobilising Billions To Boost Slumping Investment

Europe needs investment in its businesses, innovation and infrastructure if is to meet its climate goals and kickstart the economic recovery. However, ...
   

Serving Local and International Banking Needs

AstroBank CEO Aristidis Vourakis on offering quality banking services to businesses and individuals and developing a paperless environment.   Your ...
   

After Gordian comes Themis. Who’s next?

Another company prepares to enter the non-performing loans (NPLs) market in Cyprus. Themis – the Goddess of Justice – will own and take over the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Gordian_17/03/21-30/11/24_300x250px
GloriaJeans_300x250px

IMH LTD