Frequently Asked Questions
Yes, a Company registered in Cyprus is required by Income Tax Law to prepare and file a Tax Return for each calendar year, by the end of the following calendar year despite the fact the Company incurred a loss or it was profitable.
Accounting records must be updated until the end of the fourth month after the month of the transactions occurred.
It should be kept for at least 6 years.
Yes, according to the Companies Law in Cyprus (Cap.113), Companies registered in Cyprus have an obligation to prepare Financial Statements according to IFRS.
Do small and/or dormant and inactive Companies have an obligation to prepare audited Financial Statements?
Yes, the obligation for the preparation of audited financial statements is applicable.
Obligation exist when their total income (business income and other income like rents, dividends, interest etc) exceeds EUR70.000.
Companies registered in Cyprus have the obligations as per the Cap.113 to keep and maintain their Statutory Records at their Registered Office.
These records include
- a Register of Directors
- a Register of Secretaries
- a Register of Shareholders
- a Register of Charges.
The Annual Return (form HE32) is a statutory document that provides an overview of general information for the following details
- Company secretary
- registered office
- Share capital
Cyprus private companies limited by shares have the obligation to prepare and submit to the registrar of companies an annual return HE32 once a year accompanied with
- the audited financial statements of the previous year
- and a declaration of the Director and Secretary verifying that the FS submitted are those presented to the shareholder at an Annual General Meeting (“AGM“)