What new companies can expect in their first six months

The first six months can be a steep learning curve, especially if you don’t know what to expect. There are registrations and deadlines due during this time that could get you on the wrong foot if you miss them.

Make sure your company is compliant from the beginning by familiarising yourself with what’s required.

If you need help, don’t have the time or resources to look after your compliance, we’re here to support you.

We have a special offer for anyone looking to set up a new company in Ireland.

Our Company Formation & 6 Months Compliance service provides you with everything you need to make sure the first six months in business is compliant with Company Law and the Irish Revenue Commissioners (Revenue).

Purchase online or talk to our Client Services Team if you have any questions about the requirements for new companies in Ireland.

Company formation in Ireland

One of the first encounters you will have when registering a company in Ireland is with the Companies Registration Office (CRO). This is where you submit your new company application to.

They process and approve your submission and give you your company number and Certificate of Incorporation so you can start to do business. Irish company formation is done through a form A1 and the form must be submitted to the CRO alongside a company constitution.

An important feature of the CRO is that most of their application forms must be printed, hand-signed and delivered to the CRO office. Although the forms can be prepared online, Directors, Company Secretaries and shareholders are still required to physically sign documents before they can be processed by the CRO.

We take care of all the paperwork for your as part of our Company Formation Service so all you have to do is give us the relevant information and get the signatures!

Information required to register an Irish Limited Company:

  1. Unique company name
  2. Director(s), Company Secretary and shareholder(s)
  3. Registered office address
  4. Business address
  5. Share capital

We offer Company Formation and 6 Months Compliance Service for €699+VAT. This service makes sure your company is set up correctly with the CRO and we’ll take care of tax registration, registration of beneficial owner and file your first Annual Return.

Corporation Tax registration

Corporation Tax applies to all Limited Companies in Ireland, not just large corporations (as the name might suggest).

Companies register for Corporation Tax through Revenue and it’s done before the company starts trading or invoicing clients.

If you set up a company and don’t register for tax, Revenue will ask you to complete a Company Statement of Particulars within 30 days of receipt of the request. This statement details the nature of the company to Revenue.

New companies that don’t register for tax or complete the Statement of Particulars are notified to the Registrar of Companies (CRO) and the CRO may begin the strike-off process under Companies Act 2014. The company Directors and Company Secretary may also be liable to a separate penalty under the Taxes Consolidation Act 1997.

On the other hand, don’t fear Revenue or the CRO as they can usually offer great advice to new companies if you communicate early with them. But this siutation is avoidable if you know what you need to do in your first six months.

The Company Formation and 6 Months Compliance Service includes Corporation Tax registration so you don’t have to worry.

VAT registration

Many companies want to register for VAT from the outset, and it can be a tricky process if you don’t know what Revenue are looking for.

It’s also a long process that can take up valuable time in new companies. It can take up to 28 working days to get a VAT number in Ireland and in the meantime, Revenue may ask you to provide evidence you need a VAT number before they process your application.

You can check out our guide for more information on How Do I Register For VAT In Ireland.

If you rather not go through the process alone, VAT registration is included in our Company Formation and 6 Months Compliance Service. We’ll help you each step of the way.

Registration of Beneficial Owner

New companies have five months to register their company’s ultimate beneficial owner with the Central Register of Benefical Ownership (RBO).

Beneficial ownership refers to the natural person(s) who ultimately owns or controls more than 25% of the shares/voting rights/ownership interest in a company.

Registering this person is done online through the RBO website and the ultimate beneficial owner needs to have a Personal Public Service Number (PPSN) or they’ll need to complete a BEN2 form and upload it to the RBO website.

This registration is legally required and failure to register properly is a criminal offence and can result in a fine or even conviction.

We’ll take care of this registration of you as part of our Company Formation and 6 Months Compliance Service. If you don’t have a PPSN, we can also help you apply for an additional fee. Just give us the information and we’ll do the rest.

Annual Returns

All companies incorporated in Ireland have an Annual Return Deadline (ARD) as soon as they are set up.

Annual Returns are monitored by the CRO and completed through a Form B1. The first Annual Return gives the CRO information about the company such as the stakeholder and share capital situation.

  1. A company’s first Annual Return is due 6 months after incorporation.
  2. Annual Returns are filed online through CORE.ie or through Company Secretarial software.
  3. A company has 28 days after their ARD to file their Annual Return online.
  4. Once it is filed, you will receive a PDF of the Form B1, which you will need to print.
  5. Once it is filed online, you are given a further 28 days to gather the signatures of one Director and the Company Secretrary and mail the original copy to the CRO in Dublin.

This can be a long process and there are penalities if done incorrectly. Avoid the stress of maintaining your deadlines by purchasing our Company Formation and 6 Months Compliance Service. Talk to us if you have any questions about this service, we’re always happy to help.

What happens if you miss an Annual Return?

As you can see there are strict dates around your Annual Return filing that you need to follow or you risk missing your deadline. But what happens if you do?

  • Fines. If you miss any of the steps by one day (for example, you file on the 29th day or there was an error with the postage and the Form B1 arrives in the CRO after 28 days), your company will be fined €100 and an additional €3 per day missed thereafter.
  • Loss of audit exemption. This doesn’t apply to first Annual Returns but it is good to note. Second and all subsequent Annual Returns are due every 12 month and are required to be filed with a set of Financial Statements. If you miss any of the aforementioned steps, your company will be fined and you’ll lose your audit exemption. You’ll need to hire an auditor to audit your financial statements and this is a very hefty cost to bare in your first year in business.
  • Strike-off. If your company makes no progress in filing its Annual Return, the CRO will start to strike-off your company unless the correct compliance requirements are completed. This is called involuntary strike-off.

We’re here to help you file your first Annual Return. We will prepare the Form B1 and send you regular reminders to make sure you don’t miss any of the deadlines.

Talk to us about our services

If you’re interested in our Company Formation and 6 Months Compliance Service, call us on +353 (0)1 905 9364 or email hello@accountantonline.ie. Or you can purchase the service directly on our website.

We’re always happy to help you decide what services best suit your needs.

We offer a full range of services from that’ll help you succeed in business. We cater to your needs from Company Formation to Accountancy Services.

Talk to us today and find out how we can help.

You may also be interested in