Companies Law – Cap. 113 - Amendments


In 2016, the House of Representatives approved the amendment to the Companies Law Cap. 113 by passing the Law 97(Ι) of 2016, which transposes the EU Accounting Directive (2013/34/EU) into domestic law. Several changes have been noted, however, we set out below some of the most important ones for informative purposes.

One of the most notable changes is the abolition of the exemption from audit that was previously available to small or dormant Limited Liability Companies.

In addition, the exemption offered to Limited Liability Companies as to the preparation of consolidated financial statements has now been extended to apply to small and medium-size groups, except where any affiliated company is a public-interest entity or where the obligation to draw up consolidated financial statements arises under other legislation.

The provisions of the Companies Law continue to apply, in exempting groups of companies from preparing consolidated financial statements, if the ultimate parent or parent companies publish consolidated financial statements on the basis of Generally Recognized Accounting Principles.

The provisions for consolidation exemption provided by article 142.A.(5) of the Companies Law, (for example on the grounds of disproportionate cost or undue delay or companies held exclusively with a view to subsequent sale), have been abolished.

This is to serve as general informative material. If you seek specific advice please contact Ms Ioanna Solomou at