Financial statements of companies in Cyprus

Schmidt & Schmidt provides financial statements of companies registered in Cyprus with a translation.

All companies and legal entities registered with compliance with 1951 Companies Act of Cyprus are obliged to submit their financial statements (Annual Return) via the HE32 form. This information has been available to the public since 2003.

Companies are obliged to submit the HE32 form not later than 18 months after registration in Cyprus. Later on, it is submitted once a year, usually within two months after the date of general meeting. Annual Return HE23 is accompanied by financial reports from the previous year. It is compiled according to the International Financial Reporting Standards, translated into Greek, and certified by the director’s signature. AR01 may also contain auditor’s report. Obligation to submit accounting statements and financial reports applies to non-profit organisations as well.

Failure to comply with the law results in legal liability. Since 2014 it ranges from fines to criminal proceedings against company’s directors and compulsory dissolution of companies. Furthermore, a company may be deprived of the right to do business, and get a Certificate of Good standing and Certificate of Tax Residence.

Depending on the company size, the volume of information can vary from 8 pages to hundreds.

Based on this documentation, it is possible to see the full picture of financial condition of a Cypriote company, as well as results of its activities.

Financial statements and accounting reports of companies of Cyprus can be used in order to gather information about trade partners while negotiating commercial agreements, purchasing products or share in equity. These documents can also be used in court.