Accounting in Northern Cyprus.
The monthly records, annual accounts and returns of your Free Port and Zone company are handled by the same team.
- Monthly records
- Filing and compliance monitoring
- Annual accounts
Our Accounting Service Approach.
- Accounting since 1996Thirty years of experience in accounting and tax.
- The same team after formationThe team that handles the formation also handles the accounting process.
- Registered address serviceOur office is given as the registered address; a separate office is not required.
- One point of contactFormation, address and accounting are handled by a single team.
Service Scope and Limits.
Getting startedThe month in which the bank account is opened is the first month of the monthly service.
Setting up the accounting routine when the account opens
Once the company is registered and the bank account is opened, the monthly routine begins. The way documents are sent to us is agreed at the outset; records are kept regularly from that month.
Expected from you
- Bank transactions
- Invoices
- Contracts
Not included in the monthly fee
- Past-period records: Where records for earlier periods are needed, they are charged separately.
Monthly RecordsBank transactions, income and expense entries are recorded every month.
Income, expense and bank records
The documents you send and your bank transactions are recorded every month. Because records are kept regularly, no retrospective correction is needed at year end.
Not included in the monthly fee
- High transaction volume: Where transaction volume significantly exceeds the standard scope, you are informed in advance and the work is charged separately.
Filing and ComplianceWe monitor accounting, filing and compliance obligations.
Filing and compliance monitoring
Even if a Free Port and Zone company benefits from a tax exemption, filing and compliance obligations continue. We monitor the filing calendar and see that returns are prepared within the deadlines.
Not included in the monthly fee
- Special reporting: Report requests outside the standard scope are charged separately.
- Your filing in your country of residence: Declaring dividends in your country of residence is your own responsibility; we review your situation in the consultation.
Annual AccountsAt year end the accounts are prepared and the returns are submitted to the relevant authorities.
Annual accounts and returns
Even where no tax arises, the company files its balance sheet and annual reports every year. We prepare the annual accounts and submit the returns to the relevant authorities.
Passive CompanyAnnual accounts are also filed for a company with no bank account and no transactions.
A company with no activity
A company with no bank account and no commercial activity or financial transactions during the period is regarded as passive. Monthly records are not kept; only the annual accounts are prepared and the returns are filed. If an account is opened or activity begins during the year, the monthly service starts from that month.
Annual Accounting Calendar.
Records are kept monthly; the accounts are closed once a year.
- Every monthRecords
For an active company, bank transactions, income and expenses are recorded.
- Year endAnnual accounts
The period is closed and the balance sheet is prepared.
- AprilAnnual accounts and return
Filed in April even where no tax arises; it is mandatory.
- Every yearAnnual activity fee
It is a fixed charge, not a tax; it is separate from the accounting fee.
What Regular Accounting Provides.
- Continuity in annual obligationsThe balance sheet and annual reports are filed on time every year.
- Documents ready for bank requestsContract, invoice and source-of-funds information is drawn from the records.
- Documented basis for dividendsYour tax return in your country of residence rests on the company's records.
- Complete records at closureFor liquidation, all balance sheets and reports must have been filed.
Fees According to the Company's Position.
The fee is determined by two situations; the bank account and activity determine which one applies to the company.
- Active company€270 / month
From the month the bank account is opened, for as long as the company is active.
- Passive company€900 / year
Annual accounts and return for a company with no bank account and no commercial activity.
Frequently Asked Questions.
A Free Port and Zone company benefiting from a tax exemption does not remove the obligation to keep accounting records and prepare the annual accounts and returns.
Yes, it is mandatory. Even where no tax arises, a Free Port company files its balance sheet and annual reports every year.
A company that has no bank account and no commercial activity or financial transactions during the relevant accounting period. The annual accounts of a passive company are also prepared and its returns are filed.
The monthly service applies from the month in which the bank account is opened or commercial activity begins.
No. The accounting service is not included in the formation amount; it is carried out and invoiced separately.
Where transaction volume significantly exceeds the standard scope, or where past-period records or special reporting are needed, you are informed in advance and the work is charged separately.
For activities directed at companies outside Northern Cyprus and within the Free Port, the company is not a VAT payer. For sales to a local company within Northern Cyprus, the normal tax rules apply.
Closure is carried out through voluntary liquidation. First, all balance sheets and annual reports must have been filed; where the records are in order, this stage is ready.