There are a number of statutory obligations that a Cyprus registered company is required to comply with in accordance with Company Law (Cap. 113). These can be summarised as follows:
Maintaining Proper Accounting Records
Any entity that is resident in Cyprus (natural or legal) and is carrying out a business in Cyprus is required by Cyprus legislation to keep and maintain proper books and records of any transaction undertaken by that particular entity. A person is legally obliged to keep accounting records for a period of 6 years.
Maintaining Complete Statutory Records
Cyprus companies are lawfully obligated to keep and maintain their statutory records at their registered office, either in hard copy or electronic format. This is also a requirement in respect of EU money-laundering legislation. These records include a Register of Directors, a Register of Secretaries, a Register of Shareholders, and a Register of Charges.
Audit of Financial Statements
The Board of Directors of a Cyprus registered company is lawfully required to prepare a set of Financial Statements in accordance with IFRS and ensure that these are audited by a registered auditor in Cyprus.
Annual Return (HE32)
A Cyprus registered company is legally required to submit Audited Financial Statements together with the Annual Return (HE32 form) to the Registrar of Companies on an annual basis.
Annual Company Levy
All companies registered in Cyprus are required to pay an annual levy in the amount of €350 by 30 June of each year in accordance with Company Law Cap. 113 117(I)/2011 and 190(I)/2012. Only newly incorporated companies are exempt from the levy payment in the year of their incorporation, if incorporation took place after 30 June. Non-payment of the levy can result in the company being struck off the Companies Registrar.
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. The form is known as the IR4.