What to do with Dormant Companies?
With the Companies Registration Office (CRO) set to re-commence their involuntary strike off regime, it’s crucial for companies to stay vigilant. Even a single late annual return could put a company at risk of strike-off. Prompt action is essential to prevent possible enforcement by the CRO.
Dormant companies are still required to submit their annual returns. They are also subject to the same requirements as an active company in respect to preparing and filing financial statements despite the company having conducted no trade or activity.
Missed filings result in CRO late fees, with a maximum penalty of €1,200 and loss of audit exemption for two consecutive years.
Review Dormant Companies:
Now may be a good time to look at dormant companies that have not been active and determine if they are still required.
The decision to retain or dispose of a dormant Irish company will depend on several factors:
-
- Was it established for name protection purposes?
- Did it operate at one time and still hold assets or rights?
- Was it a party to any contracts?
- Does it hold property?
- Was it established for a particular purpose which did not proceed but may do so in the future?
If the answer to each of these questions is “no,” it may be time to start eliminating ongoing costs and dispose of such companies.
How We Can Help:
Whether you’re looking to dissolve a company or maintain compliance with the Companies Act, CFI is here to expertly manage these processes for you.
Our services include:
Where the Company is No Longer Required:
- Voluntary Strike Off
- Members Voluntary Winding Up
- Annual Returns and Financial Statements – Preparation of Annual Returns and accounts (both audited and unaudited) to bring the company up to date prior to strike off.
- Merger By Absorption – Where the company is a wholly owned subsidiary
Where the Company is Still Required:
- Company Secretarial Maintenance Program – On-going Monitoring to ensure that annual returns are filed on time and without penalty.
- Annual Returns and Financial Statements -Preparation of Annual Returns and accounts (both audited and unaudited) required regardless of trading status of company
Where a Company Has Missed Its ARD:
- S343 Application – Application to the District Court to extend the Annual Return Date, which removes late filing fees and, more importantly, restores audit exemption.
For more information on any of the topics mentioned, please email us at [email protected].
Alternatively, please call us at 01 664 1177, and we will be delighted to discuss your needs.
