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Obligations of a Cyprus company
A Cyprus company is subject to a number of legal obligations that must be met in order to maintain its good standing and comply with the Companies Law, Cap. 113.
Companies must hold an AGM at least once a year, and no more than 15 months should pass between the first AGM and the following one. The first AGM can be held within 18 months of the company's incorporation.
Beginning from 2011, all registered Cyprus companies must pay an annual fee of €350 to maintain their good standing status in the registry of companies maintained by the Registrar of Companies & Official Receiver. This payment must be executed on 30th June annually, and penalties are imposed for delays.
Companies must submit an annual return (Form HE32) within 18 months of the company's formation. The return must include information on the company's registered office, shareholders, directors, secretary, debentures, and liabilities. 14 days after AGM is provided for constituting the Annual return and 28 days after the preparing of the draft, every company has to present it to the Registrar of Companies. So, in general terms, after General Annual Meeting, there are 42 days are provided for filing Annual Return to the Registrar of Companies.
Every established Cyprus company is committed to preparing financial statements annually and presenting them at the general meeting of shareholders. The financial statements must provide a "true and fair view" of the company's activities and must be prepared according to the International Financial Reporting Standards (IFRS) and comply with the Companies Law, Cap. 113. Financial Statements must be arranged according to the International Financial Reporting Standards (“IFRS”) and stick to the Companies Law, Cap. 113, as amended occasionally. The Financial Statements can be organized in any language that is convenient for the company's representatives but for the Registrar of Companies, there is a compulsory requirement of using the only Greek language in the Financial Statement. The reporting end of the year is alleged to be 31st December unless another period is indicated.
The company must also comply with all other applicable laws and regulations including but not limited to tax laws, labor laws, health and safety laws, and environmental laws.
Companies that fail to comply with these obligations may be subject to penalties, fines, and even striking off from the Register of Companies.
It is important to note that this list is not exhaustive and the company should seek legal advice in order to be aware of all the obligations that they have to fulfill as per the Companies Law, Cap. 113.