Amendment To The Cyprus Companies Law Introducing Lighter Financial Reporting Obligations For Cypriot Companies

[MarkusCostigan]

Hi guys, does anyone know what the costs will be for a Cypriot LTD after it takes effect?



The purpose of the Law is said to be to reduce the administrative burden of such companies as well as to deal in practice with the issue of the real costs borne by companies and audit firms due to the work being done today.

As per the Law, private limited liability companies may submit financial statements for review instead of audit, by a statutory auditor or statutory audit firm, provided that:

• the company's net turnover (as defined by the Cyprus Companies Law, Cap. 113, and including income received from rent, interest, dividends and exploitations rights) does not exceed the amount of EUR 200,000; and
• the total value of the assets, without deducting liabilities, does not exceed the amount of EUR 500,000.

The Law is to become active upon its publication in the Official Gazette of the Republic of Cyprus and shall be applicable as from the 1st of January 2023. The provisions are to apply to financial statements ending the 31st of December 2022 or any other subsequent date.

 

[JohnnyDoe]

Hi guys, does anyone know what the costs will be for a Cypriot LTD after it takes effect?



The purpose of the Law is said to be to reduce the administrative burden of such companies as well as to deal in practice with the issue of the real costs borne by companies and audit firms due to the work being done today.

As per the Law, private limited liability companies may submit financial statements for review instead of audit, by a statutory auditor or statutory audit firm, provided that:

• the company's net turnover (as defined by the Cyprus Companies Law, Cap. 113, and including income received from rent, interest, dividends and exploitations rights) does not exceed the amount of EUR 200,000; and
• the total value of the assets, without deducting liabilities, does not exceed the amount of EUR 500,000.

The Law is to become active upon its publication in the Official Gazette of the Republic of Cyprus and shall be applicable as from the 1st of January 2023. The provisions are to apply to financial statements ending the 31st of December 2022 or any other subsequent date.

An audit costs 1-2k if not too complicated so it’s not such a big saving. For relationships with banks and partners a full audit is always preferable.