Facebook Linked In Twitter

Florence Parly: We Don’t Ignore Turkish Violations In The Exclusive Economic Zone Of Cyprus

Nicos Anastasiades: EU Must Not Be Passive With Turkey’s Aggressive Position



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



UCLan Cyprus Goes Online

In line with the announcement of the Ministry of Education, Culture, Sport and Youth of ...

Blue Air Announces Ticket Change Policy

Bearing in mind the recent developments regarding the issue of coronavirus (Covid-19), ...

Cyprus Airways Announces Changes And Cyprus Airways Announces Changes And Measures Due To COVID-19Measures Due To COVID-19

Due to the developments with coronavirus (COVID-19), Cyprus Airways is taking measures ...



Cyprus Innovation Awards Competition 2020

The submission of applications for the Cyprus Innovation Awards Competition 2020 has just begun. If your company, organization or service have successfully ...

Florence Parly: We Don’t Ignore Turkish Violations In The Exclusive Economic Zone Of Cyprus

Turkish moves in the Eastern Mediterranean raise concerns, said the French Defence Minister Florence Parly on Thursday, and expressed support to the Republic ...

Irina Misca: We Must Strengthen Insolvency Frameworks To Save Firms And Boost Economic Recovery

CITR Cyprus Director and Cyprus Country Coordinator of INSOL Europe, Irina Misca, pointed out the importance of strengthening the local insolvency framework as ...

Leptos Estates: Holiday Homes In Greece

The beautiful islands of Crete, Paros and Santorini are expected to become a “hot spot” for holiday homes this year.  Leptos Estates offers ...

Moody’s Anticipates Increase In Cyprus Coronavirus-Related Debt To Be Transitory

Moody’s Rating Agency published yesterday a report on Cyprus’ credit and debt profile, stating that “The credit profile of Cyprus (Ba2 ...

Nicos Anastasiades To Lay Foundation Stone For Cyprus LNG Import Terminal

In a ceremony on July 9, President of the Republic of Cyprus Nicos Anastasiades will lay the foundation stone of Cyprus LNG Import Terminal, which will pave ...

Cyprus Leading Econ Index Foresees Recovery Of Economy

The Cyprus Composite Leading Economic (CCLE) Index, constructed by the University of Cyprus Economic Research Centre and the Hellenic Bank, confirmed the ...

Suspended Loan Instalments Rise To €1,31 Billion in June

Following data released by the Central Bank of Cyprus (CBC), from a total of 49,043 borrowers who applied for a loan suspension, 43,046 were for households and ...