Cyprus is an EU member (since 2004) and a Eurozone member (since 2008) and is located in a strategic geographical position in the Eastern Mediterranean.
In the recent years, Cyprus has developed into an appealing business centre with focus on professional services. This is due to several factors such as, a safe and friendly environment, quality of life, a well-structured educational system, human talent, in addition to attractive tax incentives such as:
Statutory obligations and Audit requirements for Cyprus Registered Companies
All Cyprus registered companies need to submit annually their tax return forms (IR4) to the Inland Revenue Authorities (IRD) and the annual return form (HE32) the Cyprus Companies Registrar. These forms need to be based on their annual audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS).
Thus, all Cyprus registered Companies need to prepare financial statements based on the International Financial Reporting Standards (IFRS) and perform an audit in accordance with the International Standards on Auditing.
Further, were a company holds investments and is considered a group then, provided the local regulatory thresholds are exceeded, the Company also has to prepare consolidated financial statements in addition to the standalone financial statements.
There are 2 main criteria for a group Company not to prepare consolidated accounts which are the following: