Annual presentation of the company accounts

Within the time limit of three months from the date of closing of each financial year, the members of the management or of the administration must draw up and submit to the relevant bodies of the company (Supervisory Board or Supervisor and Partners or Shareholders’ Meeting) the documents of accounts provided by law, which, in general terms, are the following ones:

• Management Report

• Balance sheet

• Statement of Profit and Loss

• Appendix to the Balance Sheet and to the Statement of Profit and Loss

 Article 65 CSC (Code of the Business Companies)

Management Report

The management report must contain at least a true and clear exposition of the business development and of the company situation and must mention, in particular: 

1. The evolution of the management in the different sectors where the company has carried out its activity, namely regarding the conditions of the market, investments, costs, income and investigation and development activities;

2. The relevant facts occurred after the end of the financial year;

3. The predictable evolution of the company;

4. The number and face value of the quotas or own shares acquired or alienated during the financial year, the reasons for those acts and the corresponding price, as well as the number and face value of all quotas and own shares held at the end of the financial year;

5. The authorizations granted to businesses between the company and its directors, pursuant to article 397^th.

6. A proposal of allocation of the profits duly supported;

7. The existence of the company’s branches;

8. The company’s goals and policies, as far as the management of financial risks are concerned, including all coverage policies of each one of the main categories of transactions to which the coverage accounting is used, and the exposure of the company to the risks of price, credit, liquidity and cash flow, when materially relevant for the assessment of the elements of the assets and liabilities, of the financial standing and of the results, in relation to the use of financial instruments.

Article 66 CSC

Non-submission of accounts and non-deliberation upon them

If the management report, the financial year accounts and the remaining documents of accounts are not submitted within the period of two months following the time limit set down in article 65^th, nr. 5, any partner can request the court to make inquiries. 

Article 67 CSC

Legal reserve

A percentage not inferior to the twentieth part of the company’s profit must be meant to the creation of a legal reserve that must be increased every year, until it shows the fifth part of the capital stock, with 2.500 euros as a minimum limit.

Articles 218 and 295 CSC 

Declarations for Tax Authorities

The tax payers with taxation period coincident with calendar year (1st. January to 31st. December), the income tax return  (model 22 IRC) must be submitted (through Tax Department Website (Direcção Geral dos Impostos)), annually, before the end of May.

Article 109 e Article 112 CIRC

The tax payers must also submit a declaration with accounts and fiscal information (Annual Declaration), which must be submitted before the end of June (or before the end of the 6th following month, for the tax payers with taxation period different of calendar year).

Article 109 and Article 113 CIRC

Code of the Business Companies

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This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.