FIRMCY Insights

Dormancy is not deletion

Regulator commentary · all insights
Dormancy is not deletion

Most Cyprus lawyers who wound down an administrative-services practice think of it as something they stopped doing. The Bar Association's standing directive treats it as something you are still registered for until you file your way out.

The Council issues the directive under section 59(4) of L. 188(I)/2007. Its short title is the Directive for Beneficial Persons providing Administrative Services; the current text is the eighth edition, August 2026. Entry into force is the date the Council issues and publishes it on the CBA website.

Registration is a gate, not a formality. Beneficial Persons may provide Administrative Services only if they are entered in the registers, obtain a registration number and have not been deleted under paragraph 7. The three registers are separate and freely accessible to the public. Two carve-outs sit next to them: a Beneficial Person already registered with and supervised by another supervisory authority under L. 196(I)/2012 has no obligation to register with the CBA, and a lawyer who provides Administrative Services within their employment is outside the duty. It does apply to a lawyer who invoices those services personally.

Now the part that bites. Deletion and transfer are procedures, and the directive spells out what follows if you skip them: the Beneficial Person remains registered, irrespective of whether it did not provide Administrative Services and/or was inactive for some period, and continues to carry the obligations arising directly or indirectly from the directive, including the annual fee. Dormancy is not deregistration.

The exit has money conditions attached. In the calendar year in which deletion is requested, a natural person must have all annual fees settled where an administrative service provider company or a lawyers' company is held, a renewed annual licence, and fines and any other monetary obligations to the CBA cleared. The legal-person limb drops the licence and asks for annual fees, fines and any other monetary obligations. Read the paragraph before sending: its opening line routes deletion and transfer alike through Annex E, while the natural-person limb asks for Annex D.

Coming back is not automatic. On deletion a natural person declares that it ceases to provide Administrative Services, and to provide them again is obliged to follow the registration procedure for natural persons and to secure reinstatement first. A legal person that continues to provide the services after deletion is obliged to register with another competent supervisory authority under L. 196(I)/2012. Registration may in no case have retroactive effect, so a gap cannot be closed on paper afterwards. Transfers run on the same clock: the transferring Beneficial Person sends Annex E copying the new one, and the new one is obliged to apply immediately and before starting to provide any Administrative Services.

Fees attach to people. The registration fee is a civil debt owed to the Council, recoverable by civil action, and responsibility for the registration fee and the annual fee falls, for legal persons, on the directors as well as on the Beneficial Person, and for partnerships on all the partners. Sanctions and/or a fine are expressed for the case where the annual fee is unpaid and the Beneficial Person continues to provide the services.

One thing to check against your file. The 8th edition requires a recent clean criminal record certificate, no older than three months, for any director who is not a licensed CBA member. Verify the current text against any prior edition you hold before relying on the change.

Not legal advice. Verify against the primary source before acting.

Sources

Published 20 August 2026 · Regulator commentary
Drafted with AI assistance. Reviewed, edited and approved before publication by a named person at Ioannou & Sharpe LLC, who takes editorial responsibility for its content. Approved by Harris Sharpe, 24 August 2026.

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Not legal advice. FIRMCY publishes this analysis for general informational purposes; verify against the primary sources before acting.