Financial Reporting and Audit of Foreign Companies

Financial reporting for a foreign company is an important part of its annual corporate and tax obligations. Depending on the country of incorporation, legal form, type of activity, and financial performance, a company may face various requirements regarding bookkeeping, preparation of annual financial statements, filing of reports, and undergoing an audit.

Maira Consult helps owners and managers of foreign companies organize the preparation of financial statements, tax documents, and audits in accordance with the requirements of a specific jurisdiction.

We work with foreign companies regardless of whether they were registered with our involvement or the client approached us after the registration was already complete.

Financial reporting for a foreign company

Financial statements reflect a company's financial position and the results of its operations for the relevant reporting period. Different countries may have different reporting requirements, including the composition of the statements, the timing of their preparation and filing, bookkeeping requirements, reporting standards, and the procedure for submitting documents.

Companies in European Union countries are subject to requirements for preparing annual financial statements and filing them with the relevant state registry. The specific rules depend on the legislation of the country and the category of the company.

International practice may also involve the application of IFRS (International Financial Reporting Standards). Whether IFRS must be used depends on the jurisdiction, the company's status, the type of reporting, and other circumstances.

What is included in financial statements?

The set of documents depends on the country of incorporation and the requirements applicable to a specific company.

Depending on the jurisdiction, financial statements may include:

For example, in the United Kingdom the composition of statutory accounts depends on the category of the company. Certain companies are entitled to simplified reporting formats, and the need for an audit depends, among other things, on the size and status of the company.

Preparation and filing of financial statements

Maira Consult organizes the preparation of financial statements for foreign companies, taking into account the requirements of the country of incorporation.

Depending on the situation, we can help with:

The list of services is determined after analyzing the jurisdiction, the company's structure, and its actual activity.

Audit of a foreign company's financial statements

An audit is an independent review of a company's financial statements in accordance with the requirements applicable in the relevant jurisdiction.

An audit is not mandatory for every foreign company. The requirement to conduct an audit may depend on the company's size, legal form, type of activity, status, financial performance, or other criteria established by local law.

If an audit is mandatory, its results may form part of the package of documents filed together with the financial statements.

Maira Consult can organize:

Even when an audit is not mandatory, a company may still commission one voluntarily, for example to confirm financial information to partners, investors, a bank, or another interested party.

Financial reporting and tax reporting: what is the difference?

Financial and tax reporting are different types of reporting, although they are related to each other.

Financial statements reflect a company's financial position and the results of its operations for a given period.

Tax reporting is used to fulfill a company's tax obligations to the relevant government authorities.

In some countries, financial statements and tax returns are filed separately, while in others there is a close relationship between them. That is why, before preparing documents, it is necessary to determine the specific requirements of the country where the company is registered.

What documents are needed to prepare reports?

Preparing financial statements usually requires information about the company's business transactions for the relevant reporting period.

Depending on the company's structure and activity, the following may be needed:

If some documents are missing, we will help identify exactly which materials need to be additionally prepared.

Reporting for a foreign company with no activity

The absence of business activity does not always mean the absence of reporting obligations.

Depending on the company's country of incorporation, even an inactive or dormant company may be required to file certain corporate, financial, or tax documents.

For example, in the United Kingdom, companies that meet the relevant requirements file annual accounts even in dormant status.

That is why, before skipping a reporting period, it is important to check the requirements of the specific jurisdiction where the company is registered.

Financial reporting for a foreign company for CFC purposes

If the owner of a foreign company is a tax resident of Ukraine and has obligations related to a controlled foreign company (CFC), the financial statements may also be needed to prepare CFC reporting.

Maira Consult separately handles matters related to CFC reporting, including an analysis of the controlling person's obligations and the preparation of documents for filing.

Preparing financial statements for foreign companies in different jurisdictions

Reporting requirements depend on the company's country of incorporation. That is why we do not use a single template for all foreign companies.

Before starting work, we determine:

  1. the company's country of incorporation;

  2. its legal form;

  3. the types of actual activity;

  4. the reporting and financial period;

  5. the presence of bank accounts and transactions;

  6. tax status;

  7. whether an audit is required;

  8. requirements for filing financial and tax reports;

  9. whether IFRS or other standards apply.

This approach allows us to prepare reports based on the actual obligations of a specific company, rather than following a universal template.

Why choose Maira Consult?

Answers to the Most Common Questions:

In many jurisdictions, companies have regular obligations to prepare and submit financial statements. The specific procedure and deadlines depend on the country of registration, the type of company, and local legislation.
Not always. Whether an audit is mandatory is determined by the rules of a specific jurisdiction and may depend on the size of the company, the type of activity, the legal form, and other criteria.
The absence of activity does not always exempt a company from reporting obligations. In some countries, dormant or inactive companies must also file certain documents.
Yes. Maira Consult can prepare separate financial statements or arrange for their preparation by engaging local accountants, even if the company is not under our ongoing service.
Yes, in cases where the application of IFRS is necessary or appropriate for a specific company. The required reporting standard is determined based on the jurisdiction and the status of the company.
Yes. We can arrange interaction with auditors, prepare the necessary documents, and support the audit process.
Yes. The financial statements of a foreign company may be necessary for preparing the CFC report of a Ukrainian controlling owner. In such a case, the document requirements are determined based on the specific situation.
Yes. Maira Consult can arrange the preparation of financial statements for a foreign company for CFC reporting purposes. The statements are prepared in accordance with the requirements applicable to the financial statements of a controlled foreign company and the documents submitted together with the CFC report.

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+380 97 527-66-30

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40B Ivan Franko St., office 207

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MAIRA LLC

EDRPOU code: 38202700

Jurisdiction: Ukraine

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International Law Company Maira Consult