Every business in Ireland must submit an annual return, but keeping track of the due dates can be challenging.
This article will lead you through the process of understanding and meeting your yearly return deadlines, ensuring that your firm remains compliant and avoids unnecessary expenses.
What is an Annual Return?
Under the Companies Act 2014, Irish firms must file a form B1 Annual Return with the Companies Registration Office (CRO), along with a copy of their statutory financial statements.
An Annual Return is a “snapshot” of the company’s latest data, including directors, shareholders, and registered office address as of the Annual Return Date (ARD).
There are several exceptions for smaller businesses, non-designated ULCs, charitable CLGs and DACs, and subsidiaries of EEA holding undertakings. They may be eligible for an audit exemption.
When is the Annual Return Date and How Do You Meet the CRO Filing Deadline?
Each company is issued an Annual Return Date (ARD), which is the deadline for filing the annual return. For new businesses, the first ARD occurs six months after incorporation, with subsequent ARDs occurring annually on the anniversary of the first ARD.
Companies may file early, except for the first return, which must follow the six-month rule. Early filing shifts the ARD to an earlier date, unless the corporation chooses to keep the previous ARD. Additionally, businesses may modify their ARD once every five years by contacting the CRO, as long as the new ARD is no more than six months after the old one.
The annual return must be electronically submitted within 28 days following the ARD. Financial statements (if applicable) must be uploaded within another 28 days. If the deadline occurs on a non-working day, it is moved to the following business day.
If extra time is required, the District or High Court may extend the filing deadline; however, only one extension per period is permitted. The court order must be submitted with the CRO within 28 days to be valid.
Steps to File an Annual Return
Since June 1, 2017, Form B1 can only be filed online, either through the CRO’s online platform at www.core.ie or through specialised third-party secretarial packages that can connect directly to the CRO.
Penalties for Non-Compliance
A company that fails to file an annual return in line with the regulations commits a category 3 crime.
The filing fee for an annual return is €20. If filed late, an extra €100 is due the day following the filing date, plus a €3 daily penalty, for a maximum of €1,200 per Annual Return.
Late filing may result in the loss of audit exemption for the financial statements filed, both in the current year and the following year, necessitating audited financial statements for both years. The most severe penalty for failing to file returns may be CRO enforcement measures, such as involuntary strike-off or prosecution.
Tips for Staying on Top of Your Annual Return Date
- Set calendar reminders to track your annual return date.
- Consider engaging an accountant or legal professional to ensure timely filings.
- Monitor email notifications or reminders from the CRO.
Visit the CRO website to confirm your annual return date and start the filing process early to ensure you meet the deadline.
Many thanks to our Legal Intern Nini Collins who researched this article and if you have any queries in relation to the above or any other query, please do not hesitate to contact us on 01 298 0666.
