AUDIT EXEMPTION

AUDIT EXEMPTION

FSK Solicitors can assist in making court applications. Under section 343 of the Companies Act 2014, applications for an extension of time to file an annual return may be made to either the High Court or to the District Court

According to Section 217 of the Companies (Amendment) Act 2018, all registered companies must submit company returns annually. Filing these returns confirms that your company is still in operation. Failure to file an annual return on time can have serious consequences for a company, including the imposition of the late filing penalty, prosecution of the company and/or its directors, the loss of the audit exemption, or the possible involuntary strike-off and dissolution of the company.

Company law in Ireland provides that private companies meeting certain criteria can take advantage of an exemption from the requirement to have their accounts audited. The criteria are set out in Companies Act 2014 which can be broken down into these 2 areas.

demo-attachment-69-circle

audit exemption

1. The company needs to consider ‘small’

  • To be classed as ‘small’ the company must meet at least two out of the following three limits:
    • turnover is less than €8.8 million for the year.
    • assets are less than €4.4 million at the end of its financial year.
    • the average number of employees is less than 50 for the year.
  • A group company cannot be considered small unless the group as a whole qualifies as a small group (i.e. the entire group meets the same turnover, assets and employee limits set out above).
  • A holding company that prepares group accounts cannot be considered small.
  • A company that undertakes any of the 18 activities set out in Schedule 5 of the Companies Act 2014 cannot be considered ‘small’. (Broadly speaking these relate to financial, banking, insurance, investment or trade union activities.)

2. Annual return filing

  • the annual returns must be up-to-date having been filed on time with the Companies Registration Office and abridged accounts attached.

FSK Solicitors offers reliable, efficient, and straight-talking legal services to businesses in all industries. We can make a cost effective application to the less expensive District Court. The Court can make an Order extending the time in which the annual return of the company, in relation to a particular year, may be delivered to the Registrar of Companies. This removes the audit requirement for two years and the late filing penalties – the returns can be filed with unaudited accounts as if they were received by the Companies Office on time.

We look after the process from start to finish for you including:

  • Arranging the timing of the hearing date ( Section 343 of the Companies Act 2014 )
  • Serving of the notice (Form 93B.1) on the Registrar
  • Arranging the company’s Affidavit (Form 93B.2) – this puts the Registrar on Notice in accordance with section 343(5), CA 2014
  • Serving the Rollback order with the Companies Registration Office.

The Court may, if it is satisfied that it is just to do so, make an Order extending the time in which the annual return of the company may be delivered to the Registrar of Companies. An application to the Court can only be made in respect of an annual return that has not already been delivered to the CRO.

Being based in central Dublin – the heart of Dublin’s legal and financial hub – our Solicitors are accessible and able to meet with you.