Law 146(I)/2011 recently passed by the House of Representatives and requires registered partnerships to create and submit audited financial accounts (the “Amending Law”) to the Registrar of Companies.
European Union Directives
The Amending Law came into effect for the purpose of implementing the Fourth Directive: annual accounts of companies with limited liability, the Seventh Council Directive 83/349/EEC of the Treaty on consolidated accounts, the Eleventh Council Directive 89/666/EEC concerning disclosure requirements in respect of branches opened in a Member State by certain types of companies governed by the law of another State.
Section 64A of the Cypriot Partnerships Law
A new section 64A is inserted in the Cypriot Partnerships Law. Sections 118 until 122 (Annual Return) and 141 until 169 (Financial Statements) of the Cyprus Companies Law are adopted, restated and applied to the extent required by the new section 64A.
Partnerships fall in the scope of the Amending Law if they are registered under the Cypriot Partnerships Law and whose partners are:
- Limited liability companies which are incorporated under the Companies Law
- Companies of a member state which are defined in Section 2 of the Cypriot Companies Law
- Companies registered in any other jurisdiction but are in similar form to those mentioned above
- Partnerships formed under the Cypriot Partnerships Law
- Partnerships formed under any other relevant law of the European Union
Article 64A goes on to specify the annual requirements Partnerships must comply with.
Preparation of Financial Accounts
Partnerships falling within the ambit of the Amending Law must prepare financial accounts in accordance with section 118 until 122 of the Cypriot Companies Law. To the extent required by the new section the financial accounts are
- prepared within six months from the end of the financial year
- prepared and comply with the several requirements specified in the law and which for the purposes of this post are not relevant
Where sections 118 until 122 of the Cypriot Companies Law requires the secretary to do certain actions such responsibilities will be undertaken by the partner charged with the secretarial work. Where the term registered office is used it shall mean the main place of business and where the term member is used it shall mean every partner. The term director shall be interpreted to mean all the managing partners of the partnership.
If for any reason financial accounts are not prepared every person responsible will be liable to a default fine. If the financial accounts do not present a true and fair view of the Cypriot Partnerships activities are commit a criminal offence and is subject to imprisonment which does not exceed one year or a fine of one thousand seven hundred euro or both chargers.
Submission to the Registrar of Companies
The partnership’s financial accounts once prepared and signed must be submitted along with an annual return and submitted to the registrar of companies in Cyprus.
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