Do not be fooled by the title, this Act is not just for Accountants.  

The Companies (Accounting) Act 2017 was commenced on 08.02.2018 by means of S.I. 34/2018.   At first glance, with around 80 amendments to the Companies Act 2014 it looks more like an Act intended to clarify and qualify misconceptions or unintended errors arising since publication of the Companies Act 2014.

However, there are some excellent nuggets hidden in the Act not least of which is:

1. expansion of qualifying conditions to qualify as a Small Company; and
2. introduction of the concept of a Micro Company.

Small Company

S.280(a) now classifies a Small Company as one fulfilling two of the three following requirements.

o   Turnover                                                               – does not exceed €12m [up from €8.8m]

o   Balance Sheet total                                           – does not exceed €6m [up from €4.4m]

o   Average number of employees                    – does not exceed 50 [no change]

Micro Company

S.280(d) introduces the concept of a Micro Company where it fulfils the following.

o   Qualifies for Small Companies regime

o   Fulfils two or more of the following
(a)       Turnover                                                   – does not exceed €700,000

(b)      Balance Sheet Total                              – does not exceed €350,000

(c)       Average number of employees       – does not exceed 10

The change in Small Company and introduction of Micro Company have knock-on effects to the Companies Act 2014.  For example, substitution of S.352(1) dealing with exemption from filing certain information, and introduction of a new S.305A dealing with payments to third parties for services of directors.

5 Reasons to consider doing business in Ireland

Photo by Stephen Bergin on Unsplash

1.      Ireland has been ranked as one of the best countries for business by Forbes Magazine.

  In addition, the IMD World Competitiveness 2017 Yearbook ranked Ireland;

         – 1st in the world for investment incentives for foreign investors

         – 1st in the world for labour flexibility and adaptability of the workforce

         – 2nd most competitive country in Eurozone

2.      Native English Speakers

 Post-Brexit, Ireland will be the only native English-speaking member in the EU with access to the European Market of 500 million consumers.

3.      An unrivalled Hub for Foreign Direct Investment

 In 2017 Ireland was named the best country in the world for attracting high-value foreign direct investments for the sixth year in a row. Many of the world’s

 high performing global companies are doing business in Ireland including Google, Facebook, Paypal, Intel, Twitter, Pfizer, Citi, Huawei and Novartis.

4.      Well Educated Workforce

 Ireland’s workforce is well educated, flexible and adaptable. Ireland also has the highest proportion of science and engineering graduates in the OECD.

5.      Attractive Tax Regime

  Ireland offers 12.5% corporation tax and 25% R&D Tax credit and other taxation benefits. The country also has exceptional intellectual property (IP) 

  and holding company regimes.

For facts about Ireland, click IDA Facts about Ireland