Provision of Accounting/Audit/Administrative Services by Firms
In order for a firm to provide accounting, auditing, or administrative services in the Republic of Cyprus, a practicing certificate needs to be obtained by the Institute of Certified Public Accountants of Cyprus (ICPAC).
Moreover, the practicing certificate needs to be obtained for each of the following persons (see Practicing the Accounting and Auditing Profession in related links):
- Sole proprietors, partners, or directors of a firm where public practice is carried out;
- Employee designated as a responsible individual for the signing of opinions and reports on behalf of a practicing Member or firm of accountants;
- Providers of tax planning and tax consultancy, business consultancy, corporate services and trustee services.
Who is Eligible
Every legal person can be registered and obtain a practicing certificate, provided that the Institute of Certified Public Accountants of Cyprus (ICPAC) is satisfied that the following conditions are met:
- The natural persons who carry out statutory audits on behalf of the audit firm have obtained a certificate to practice the profession in the Republic (only for statutory audit firms);
- The majority of the voting rights of the partners or shareholders of the audit firm, depending on the case, is held by audit firms to which a practicing certificate has been granted to carry out statutory audit or by statutory auditors;
- A majority up to seventy five percent (75%) in the case of audit services and fifty percent (50%) in the case of accounting and administrative services respectively, of the general partners, in the case of a partnership, or the members of the board of directors, in the case of a company, are statutory auditors, or holders of a practicing certificate, as the case may be;
- If the general partners, in the case of a partnership, or the members of the board of directors, in the case of a company, are not more than two, at least one of them must hold a practicing certificate or a practicing certificate and audit qualification, or a certificate for the provision of administrative services, as the case may be.
Where to Apply
The application for a practicing certificate of a firm / statutory audit firm can be submitted either through the PSC Cyprus or by contacting directly the competent authority:
The Institute of Certified Public Accountants of Cyprus
P.O.Box 24935, 1355 Nicosia
11 Byron Avenue, 1096 Nicosia
Tel.: +357 22 870 030
Fax: +357 22 766 360
Which Certificates must be Submitted
The application form should be accompanied by the following documents:
- Copy of the professional indemnity insurance;
- Copy of certificate of incorporation (in case of company);
- Copy of Certificate of Registered Office Address (in case of company);
- Copy of Certificate of Directors and Secretary (in case of company);
- Copy of Certificate of Shareholders (in case of company);
- Copy of Certificate of Partners (in case of partnership);
- Copy of address of place of Business (in case of partnership);
- Copy of the Certificate of registration of partnership (in case of partnership);
- Copy of the Certificate of Registration of Trade Name (in case of tradename);
- Settlement of the fee of €750, only in the case of firms providing administrative services;
- Settlement of the fee of €70, only in the case of firms providing audit services;
- Copy of the Business Continuity Agreement.
Fees Applicable & How to Pay
Application fee of €750 in the case of firms providing administrative services.
Application fee of €70 in the case of firms providing audit services.
Please visit the ICPAC’s website (this specific link for the full fees catalogue).
The applicant is informed regarding the authorization decision within two months from the date that the application form and supporting document were duly submitted.
Licence Validity Period
The licence is valid until the 31st of December of the year of issue. The renewal forms are sent by the ICPAC to all members electronically.
Dispute with the Competent Authority's Decision
How to File an Administrative Action
Administrative Action Against a Competent Authority’s Decision
Any person may file an Administrative Action at the Administrative court against a decision, act or omission of any competent authority or body.
Pursuant to Article 146 of the Constitution, an Administrative Action may be lodged within 75 days from the date of the decision or act or omission or from the day when such decision or act or omission was notified to the applicant.
The Administrative Court acts as a cassation Court and not as a substantive Court. In other words, the Administrative Court may:
I. Dismiss the Administrative Action
II. Annul wholly or partially the contested decision or act
III. Compel the relevant authority or body to take a certain action
After a decision is annulled, the authority and/or public body must reverse things back to the state prior to when the concerned decision and/or act was executed and reexamine.
How to Appeal
An Appeal may be filed against the Administrative Court’s first-instance decision within a period of 42 days from the date such decision was given.
At the Supreme Court (Court of Appeal Section) hearing, the contested issue of the appeal remains the legality of the decision or act already adjudicated for. However, such revision of the legality of the decision or act is solely examined on the matters and the extent that the two parties have limited the reasons in the relevant notice of appeal.
The decision adopted by the Supreme Court is considered final in relation to the matter that has been judged.
Legislation & Obligations
Which Laws and Regulations Apply
Please follow this link.
What are my Obligations
Every licensed firm/statutory audit firm is obliged to comply with the provisions of the International Financial Reporting Standards, the International Standards on Auditing, the Code of Ethics for Professional Accountants (identical to the IFAC Code), ICPAC’s Directive on the prevention and suppression of money laundering activities and all the technical standards and guidelines that are applicable to the accountants’ work.
Moreover, audit monitoring visits to the audit firms as well as monitoring visits to all licenced firms to verify compliance with the requirements of the Prevention and Suppression of Money Laundering Activities Laws and ICPAC’s Directive and Key Regulations are carried out by authorized persons of the ICPAC at least once every six years.