Filing Annual Returns and Financial Statements – FAQ
The majority of Irish companies have a financial year end date of 31st December and consequently their Annual Return Date (ARD) falls on the 30th September.
These companies file their Financial Statements and the signed signature page with the Companies Registration Office (CRO) no late than 25th November.
Failure to file an annual return within the deadline (56 days within the ARD) results in incurring late filing penalties and loss of audit exemption for the following two years and can also result in prosecution of Companies and Directors. The Company also risks the company being struck off the CRO Register.
Late Filing Penalty
Late filing incurs a penalty of €100 w.e.f. expiry date of the company’s deadline plus a daily penalty of €3 thereafter, up to a maximum of €1,200 for each return.
Loss of Audit Exemption
Late filing also results in loss of audit exemption for the following two years.
Prosecution of Companies and Directors
Under section 343 of the Companies Act 2014, companies and directors can be prosecuted under section 865 of the Companies Act 2014 and face an on-the-spot fine for persistent late filing.
Involuntary Strike Off
If a company is late, they risk being struck off the CRO register and dissolution. Accordingly, the company loses limited liability protection w.e.f. date of strike off.
Below are some points to keep in mind:
- Annual Return Date (ARD) – is the date up to which information contained in the Annual Return is made, e.g. up to 30th
- Deadline – the Annual Return (financial statements and signed signature page must be filed electronically within 56 days from ARD.
- Director Details – residential address and list of Directorships, worldwide, past and present, within the past five years to be included.
- Directors PPSN / VIN – from 11.06.2023, Directors are required to provide their PPSN when filing certain Statutory Forms (including the Annual Return). Where a Director does not have a PPSN they must apply to the CRO for an “Identified Person Number” by filing a Form VIF (Declaration as to Verification of Identity). Once the CRO has verified the details in the Form VIF, an Identified Person Number (IPN) will be issued to the Director.
- First Annual Return- does not require Financial Statements.
- Financial Year – A company’s first financial years end can end no more that 18 months after its incorporation date. Subsequent financial years must start the day after the last financial year end and be for 12 months.
- Nine month rule means that companies must file their Financial Statements within a maximum of 9 months of the end of their financial year, known as the 9 month rule.
- Financial Statements must be filed electronically before the signed signature page(s) are received by the CRO.
- Signatories for Annual Return – A Director and the Company Secretary.