Looming deadlines are rarely anyone’s favourite topic of discussion so it is vital to remain up to date on any action that needs to be taken in regards to your business matters to avoid falling behind and encountering any issues. The deadline for company conversions under the Companies Act of 2014 is fast approaching and it is important to be aware ahead of time of your obligations to the conversion process. To make this process a much less painful one, we have compiled some of the most important points to be considered. It is expected that a great many Irish companies are to choose the “Do Nothing” option (as many an Irish mammy would say is the Irish way) so as a business owner you must stay informed of the implications of all choices.
Companies in existence as of 1st June 2015 must either opt in to the Model Private Company (Ltd.) regime or opt out of this regime and into the Designated Activity Company Regime (DAC).
There has been a provided transition period of 18 months from the date of the commencement of the Act (June 1st 2015), to allow companies sufficient time to comply and for the Companies Registration Office to act on the results and this time is now running out.
Any company incorporated after this date will be registered as one of the new company types under the act i.e. Ltd., DAC, CLG, etc. All existing companies must comply with the rules of the act during this period of adjustment. August 31st will be the deadline for all companies to initiate the conversion process whilst November 30th ends the deadline period. Any companies which have not actively converted to a new company type during this period will automatically be converted to Ltd. Companies will then be required to show their company type in their name which will then be reflected on a new certificate of incorporation
Although there is an option of taking no action and utilising a statutory default, there are many implications of doing so and it is actively advised to take action yourself in order to have full control over the process. Taking no action may result in delays in banking and legal transactions as despite having a new certificate of incorporation, the company will not have an updated constitution, as well as causing possible issues in the future as it will be deemed that directors did not follow the appropriate duties in this case. This is the future of your business at stake and there can be no room for ambiguity. When it comes to your business, you should always be in the driving seat on matters such as these.
Should you require any assistance or guidance on this or any other business or financial matters please don’t hesitate to contact us at DCA Accountants where we can help you make this and many other business matters as quick and painless as possible to ensure the continued success of your business.
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