There are many reasons for a company to be involuntarily struck off the register. The most common reasons include:
Non-Filing of Annual Returns:
It is an obligation for every company to file an annual return. If a company fails to file its annual returns for two consecutive years, the CRO may initiate the process to strike off the company.
Failure to Appoint a Company Secretary:
All Irish companies must have a company secretary. If a company fails to appoint a company secretary within 14 days of its incorporation or if the company secretary resigns and the company fails to appoint a replacement within 14 days, the CRO may initiate the strike-off process.
Failure to Maintain a Registered Office:
A company must maintain a registered office in Ireland where it can receive official communications and notices. Another reason may be, a failure to maintain a registered office or notify the CRO of any changes to the registered office.
Failure to File Financial Statements:
It is an obligation for Irish companies to file annual financial statements with the CRO. If a company fails to file its financial statements for two consecutive years, the CRO may commence the strike-off process.
Non-Compliance with Statutory Obligations:
If a company fails to comply with any other statutory obligations it may be struck off. This can include not holding annual general meetings, not maintaining proper accounting records, or not notifying the CRO about changes in directors or shareholders.
Inactivity or Dormancy:
If a company is inactive or dormant the CRO may strike off the company from the register. This meaning it is not carrying out any business activities or transactions.
Failure to have a Section 137 bond in place where required.
It’s important to note that before initiating the strike-off process, you will be notified. This is to remind the company to rectify any non-compliance issues. If you require a bond to incorporate you must renew this after two years to stay compliant.