‘MICRO COMPANIES’ According to the “CYPRUS COMPANIES LAW, CAP. 113

The Cyprus Companies Law, Cap. 113, was amended on the 29^th of July 2025 by Law 162 (I) of 2025. The Amending Law introduced a new definition of ‘micro companies’ for the first time [in Greek: ‘εταιρείες πολύ μικρού μεγέθους’] for the purpose of harmonisation with Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting.

According to the Law “micro companies” are companies which on their balance sheet dates do not exceed the limits of at least two of the three following criteria:

• balance sheet total (total assets without extracting liabilities): four hundred and fifty thousand euros (€450.000);
• net turnover: nine hundred thousand euros (€900.000); and 
• average number of employees during the financial year: ten (10) employees.

Directive (EU) 2022/2464, also referred to as the Corporate Sustainability Reporting Directive (CSRD), requires most companies in the EU to report on their environmental and social impact, with micro companies being an exception. The CSRD states specifically in its preamble:  It is therefore appropriate to require all large undertakings and all undertakings, except micro undertakings, whose securities are admitted to trading on a regulated market in the EU to report sustainability information. The CSRD exempts micro-undertakings from mandatory sustainability reporting to reduce administrative burdens, though they may voluntarily report using a simplified, voluntary standard. The directive aims to harmonize sustainability reporting across the EU, enhancing transparency and comparability for financial markets and the public.

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