Preparing for Company Law Annual Compliance

Preparing for Company Law Annual Compliance

It is that time of year again where a large majority of companies are required to prepare and file their Annual Return and Financial Statements. Whether these financial statements are audited or non-audited, the expense of the process and the responsibilities on the directors can be burdensome especially if the company is dormant, not trading or the directors are at retirement age. 

If the company is not needed as part of your future plans or is no longer required in a group structure, there are a number of options available to directors and shareholders to remove the company from the Register.

These are as follows:

Members Voluntary liquidation 

This process is suitable for companies that have traded and have assets to distribute for the benefit of the shareholder. The process is fairly straightforward and involves a directors meeting, preparing a Statement of Assets and Liabilities and the signing of a shareholder resolution. The shareholder may benefit from availing of certain tax reliefs. 

Voluntary Strike off 

This administrative process is suitable mainly for non-trading, dormant companies. A company can avail of this process where its assets and liabilities are less than €150, the company has ceased trading, bank accounts are closed, and it has completed all tax returns are deregistered for tax. However, in order to avail of this process, the company's current annual compliance obligations with the Companies Registration Office must be up to date. 

Finally, if a company has a number of matters to consider, like intercompany loans, sale of a business or collection of debts, prior to dissolving the company then it is advisable to file your annual return and financial statements within the deadline. You will then be in a position to consider the options available to the Company.

We're here to help

All of the above processes have a number of benefits. At Azets we have the experts who can take you through the processes from start to finish. If you feel any of the processes above would benefit your future plans, please reach out today for more information.