With the ever increasing regulation and reporting requirements in Cyprus, it is essential to ensure that your Company fulfills statutory and reporting obligations.
We outline below the main obligations, repercussions of non-compliance and how best to avoid any penalization.
Requirements of the Board of Directors – Reporting
- Annual General Meetings (AGM): A Company must hold its first AGM within 18 months of the date of incorporation. Thereafter, an AGM must be held each year and the time between them must not exceed 15 months.
- Annual Returns: The Company must annually submit within 42 days of the AGM Audited Financial Statements together with the Annual Return (H.E. 32) with the Registrar of Companies (ROC). Non-compliance will result to financial penalties.
- Annual Company Levy: Every Company must pay an annual levy to the ROC in the amount of €350 (Three hundred fifty Euros) for the company to be in good standing order and to remain on the Register of Cyprus companies. Failure to pay such levy will result in financial penalties 10% for a delay of 2 months, 30% between 2-5 months.
In case the abovementioned b & c requirements are not met the ROC will initiate procedures to strike-off the company where they will initially send a 3 month warning letter to comply with the above requirements and in the event that the company does not comply, the ROC will proceed to stick off the company.
A company may be reinstated in the Registry of Companies if it applies to the District Court of its jurisdiction, provided that it meets certain criteria, read more in our Publications section on the matter.
Tax registration & compliance
- A company must register with the Cyprus Tax Authorities within 60 days from its incorporation. Any changes that may affect the records of the Inland Revenue register must be submitted within 60 days from the date of change. (Failure to comply will result to heavy financial penalties).
- All companies registered in Cyprus are required to pay Corporate Tax and Special Contribution for Defense.
- The Company’s Tax Returns from IR4 must be filed no later than 31st December of the year ended. Continued non-compliance will lead to legal actions against the company and its officers.
- Companies that meet the criteria for VAT registration must register with the VAT Authorities within 30 days from the date at which the requirement to register exists. VAT returns are submitted on a quarterly basis.
- The VAT Information Exchange System (VIES Form) must be submitted every month for those companies that provide goods or services within the 15th day of every following month.
- Social Insurance contributions must be paid monthly for all employees working in the Republic of Cyprus.
All Minutes and decision making of the company must be kept at the Registered Office Address of the company and shall be open for inspection by any person during normal business hours.
Changes to the Corporate Structure, Board or Members of the company need to be submitted and updated at the ROC within a specific deadline as per the Law regulating Companies, Cap. 113. In the event that the relevant deadlines are exceeded the company shall need to obtain a court order for an extension of time that shall be submitted with all other relevant documents.
Audit & Accounting obligations
- All Companies must prepare and maintain accounts as per the International Financial Reporting Standards & International Auditing Standards. In the event of non-compliance criminal charges may be brought against the firm and its officers.
- For income tax and VAT purposes, companies are obliged to keep accounting records for six years from the year ended.
By monitoring all corporate deadlines, we safeguard your company’s interests from incurring needless and potentially heavy fiscal penalties.