By Simon O’ Connor, 15th November 2015
Before the new Companies Act 2014 was introduced, Unlimited Companies only accounted for 2% of companies in Ireland as incorporating a company with unlimited liability was not something which appealed to many shareholders.
However, the demand for Unlimited Companies is growing since the Companies Act 2014 has introduced the requirement for Limited Companies to file their financial statements with the CRO and publicise their financial details (including the company’s director remuneration and pension contributions) in the public domain.
If a company requires keeping their financial statements private, they will need to act soon as they have a limited opportunity to convert to an Unlimited Company. They must have filed their financial statements within the last 3 months or file them first before they can convert to an Unlimited Company. The purpose of this is to stop companies from converting before their Annual Return Date and then converting back without filing financial statements. A Private Limited Company may convert to an Unlimited Company without filing financial statements as long as the conversion is done within 3 months of the date of incorporation.
Also introduced in the new Companies Act 2014 is the extension of audit exemption to Private Unlimited Companies. However, the company must meet certain criteria before it can avail of the audit exemption. For a Designated Private Unlimited Company that meets the criteria to avail of an audit exemption, an annual return with the Companies Registration Office is all that is required. However, if that company exceeds the thresholds for audit exemption it must also attach a special auditors report to the annual return.
Company Bureau can assist you or your client’s companies to convert to one of the new Unlimited Company types. For more information please do not hesitate to contact us on +3531 646 1625 or alternatively you can fill out a contact form on our website and a representative will be in contact as soon as possible.