After Incorporation: Compliance, Reporting, and Substance

Incorporation is only the first step. The true test comes after registration, when ongoing obligations must be met.

Key compliance duties:

• File annual returns and audited financial statements (mandatory for most Cyprus companies).

• Keep the UBO Register updated with any changes.

• Maintain accounting records in line with Cypriot law.

• Meet all tax deadlines to avoid penalties.

Why substance matters:

• To claim Cyprus tax residency, companies must prove a real presence:

  • Registered office in Cyprus

  • Local directors actively involved in decisions

  • Employees or operational activity on the ground

• Without substance, companies risk challenges under EU tax rules and OECD BEPS standards.

Banking considerations:

• Banks apply strict due diligence when opening accounts. They require:

  • Transparency on UBOs

  • Details on the company’s business model and financial flows

  • In-person identification or certified documentation

• Compliance with banking requirements ensures smooth financial operations and global credibility.

A well-run Cyprus company doesn’t just meet minimum compliance.

With good governance, transparent reporting, and genuine substance, it becomes a trusted vehicle for long-term international business success.