GENERAL AND LIMITED PARTNERSHIP AND BUSINESS NAMES

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Published on Wednesday, 09 November 2011 07:48

General and Limited Partnership and Business Names Law, Capital 116, (hereinafter called “the Law”) was amended on 4th of November 2011 by the amendment Law No. 146(I)/2011.

 

Provisions of the Company Law, Capital 113 regarding to ANNUAL FINANCIAL STATEMENTS and FINANCIAL STATEMENTS AND AUDIT shall apply to partnerships which were incorporated in Cyprus provided that one or all partners are:

  1. Limited Liability Companies, incorporated according to provisions of the Company Law, Cap.113
  2. Companies of the member state of EU within the meaning of section 2 of the Company Law
  3. Companies of Third Countries, which have identical legal form with the above mentioned companies
  4. Partnerships, incorporated under the provisions of the Law
  5. Partnerships and private companies of other Member State of EU, which are expressly mentioned in the Law

 

THE ABOVEMENTIONED PARTNERSHIPS SHALL:

  • PREPARE and SUBMIT to the Company Registrar ANNUAL FINANCIAL STATEMENTS according to provisions of sections 118 -122 of the Company Law

In this case the following rules shall apply:

  • Financial statement shall be submitted within 6 month after the end of financial year
  • It is not necessary to enclose documents to the Annual Statement, presented to the General Meeting provided that:

a)      The public has access to this documentation at the office of the Company

b)      Copies of this documentation are available to the public

  • Comply with provisions of the Company Law, regarding PREPARATION OF ANNUAL FINANCIAL STATEMENTS (sections 142 -143) and PRESENT TRUE and FAIR PICTURE OF THE COMPANY
  • Comply with provisions of the Company Law, regarding PUBLICATION OF FINANCIAL STATEMENTS (section 150)
  • Comply with provisions of the Company Law, regarding PREPARATION OF REPORT OF THE DIRECTORS, which is enclosed to financial statements (section 151)  
  • PRESENT FINANCIAL STATEMENTS AND REPORTS OF THE DIRECTORS TO THE GENERAL MEETING according to section 152 of the Company Law, where all partners or their legal representatives are present
  • PRESENT FINANCIAL STATEMENTS AND REPORTS OF THE DIRECTORS FOR VERIFICATION

 

PENALTIES FOR NON – COMPLIANCE WITH THE ABOVE MENTIONED PROVISIONS OF THE LAW:

 

PARTNERSHIPS, which have the obligation to prepare and submit to the company registrar annual financial statements and DO NOT COMPLY:

 

1.       With provisions of sections 118 -122 of the company law are liable to “THE PENALTY OF OMISSION”, having the meaning, given to it by section 375 of the Company Law

 

          According to section 375 of the Company Law “THE PENALTY OF OMISSION” shall be estimated for every day where omission, refusal or violation is continued. It shall not exceed the amount defined by specific provision or if it is not prescribed it should not exceed the penalty of 42.72 euro.

 

2.       With provisions of section 142 of the Company Law, regarding PREPARATION OF ANNUAL FINANCIAL STATEMENTS, commit criminal offence and in case of conviction is liable to imprisonment not exceeding one year or to a fine not exceeding 1700 euro or to both of these sentences

 

3.       With provisions of section 150 of the Company Law, regarding PUBLICATION OF FINANCIAL STATEMENTS, commit criminal offence and in case of conviction is liable to a fine not exceeding 850 euro

 

4.       With provisions of section 151 of the Company Law, regarding REQUIREMENTS OF PREPARATION OF REPORT OF THE DIRECTORS, which is enclosed to financial statements, commit criminal offence and in case of conviction is liable to imprisonment not exceeding one year or to a fine not exceeding 17000 euro or to both of these sentences

 

          DEFENCE: If it is proved that the defendant had a reasonable cause to believe and he believed that there was another capable and responsible person who was obliged to comply with the said provisions of the Law and that this person was able to perform this duty

 

5.       With provisions of section 151 of the Company Law, regarding PUBLICATION OF REPORT OF THE DIRECTORS, which is enclosed to financial statements, commit criminal offence and in case of conviction is liable to a fine not exceeding 850 euro

 

6.       With provisions of section 152 of the Company Law, regarding PRESENTATION OF FINANCIAL STATEMENTS AND REPORTS OF THE DIRECTORS TO THE GENERAL MEETING, is liable to a fine not exceeding 170 euro

 

For further information, please contact:

Elena Oratis

Advocate

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(+357) 25508000

Areti Charidemou & Associates LLC Law Firm