The consequences for a missed annual return are many and it can be a costly process.
A company is required to file its first annual return without statutory accounts six months after incorporation of the company. Subsequent annual returns must be filed every year after the six month date. It is possible to make an extension or change the first annual return by filing the appropriate forms to avoid a missed annual return. The annual return is required to be filed within the 28 day deadline of the annual return date.
It is not possible to place an Irish company into a dormant state like limited company in the UK. Statutory accounts must still be filed even if the company is non trading and annual returns are still required to be made. Dormant companies still incur fees if the statutory requirements are not met.
Penalties for missing an annual return
A missed annual return has serious consequences for the company and possibly for the officers, both Directors and Secretary of the company. Firstly late filing fees will be due at €100 once off fee and €3 for every day that is missed thereafter to a maximum of €1200.00. The company registrations office in Ireland are not flexible when it comes to waiving these late fees or audit exemption.
There are thresholds for Audit Exemption. Every company that Irish formations incorporates is submitted on the basis that they will be audit exempt. Some companies cannot avoid Audit but if an annual return is missed then the company risks loss of Audit exemption. Audit can cost in the thousands of Euro per year. Your Accountant will require time and information to prepare your annual returns and if you are close to your deadline it is advisable to consult with a suitably qualified Accountant for this process.
What do I do now?
The most important thing to do regarding a missed annual return is act immediately. This will ensure your compliance when there is a missed annual return. We can put you in touch with an accountant on request to ensure that your compliance is met.