Around 15,000 businesses in Ireland fail annually, reports the Irish Times. Opening a company is associated with huge risks that entrepreneurs need to learn to mitigate even prior to the company setup process.
Nevertheless, if you firmly decide to end your entrepreneurial career, learning what steps to take to retain compliance while closing down a company in Ireland is essential.
Here we explain what requirements you must meet to officially close a company in Ireland, explain the types of company strike off, provide you with average cost calculations and time estimations for dissolving an Irish enterprise.
Table of Contents
What is Company Closure
In simple words, company closure is a process of making a business or institution stop operating permanently. To sound more formal, this is the process of completing the formal procedure of dissolution, in compliance with the secretary of state.
A company in Ireland can undergo the procedure of voluntary or involuntary strike off. The latter often doesn’t require company’s directors’ consent. Involuntary struck off company is the result of failure to file annual returns or any violation of requirements of Companies Act 2014. The assets of a company in this case become the property of the state.
The process of a voluntary strike off, on the contrary, is completed following the will of company’s owners. A company that decided to cease to trade, or has never traded, has no outstanding creditors can initiate the closing procedure.
How to Close a Company in Ireland: The Process of Voluntary Dissolution
In the following paragraphs, we’re uncovering essential steps to the voluntary liquidation of a limited company in Ireland. Make sure to complete each stage to ensure a fully legal winding-up process.
Hold a Board Meeting
This is when the directors of a private limited company Ireland meet and vote to close a company. The board meeting can be held remotely or in person but no more than 3 months before making an application for dissolution.
Fill out the H15 Form
The number two step to closing a company in Ireland is to complete the H15 form. This required to confirm that the board meeting was held, directors agreed to close a company in Ireland, and they requested a voluntary strike off.
Even though form completion is the second stage of company closure in Ireland, it should only be sent to CRO (Companies Registration Office) when all the following steps are completed.
Ensure all Annual Returns are Up to Date
All annual returns must be filed and as well as all fines for any late filing penalties paid off before applying for dissolution. You can’t have your company disbanded if you have never filed annual returns or have missed the deadline of your last Annual Return.
Upload a Letter of no Objection from Revenue
The next step to strike off a company is to receive a letter of no objection from the Revenue. This letter states that the Irish Revenue Commissioners are satisfied with your company’s compliance with the company’s statuary requirements and have no objections to closure.
The reasons why Revenue may refuse your application are outstanding tax bills, tax returns, or unpaid late filing fees.
Place Announcement in Daily Newspaper
An announcement is a final step before applying to the company registration office to close a private limited company in Ireland. This is an advertisement in a daily newspaper that states your intention to wind up a business. Notice, this should be a newspaper that circulates nationwide in the territory of Ireland. The advertisement should be placed no more than 30 days before you submit strike off application. Thus, it’s crucial that all previous steps are already complete.
Provided you need help at any stage of company dissolution in Ireland process, Chern & Co experts are here to help. Contact us and our manager will review your particular situation absolutely for free!
File Your Paperwork to Companies Office Ireland
Summing up, to complete the Irish company closure, gather and submit the following package of documentation to CRO
- Filled form H15;
- A PDF copy of a Letter of no Objection from the Revenue
- The Original cut-out off the notice from a daily newspaper dating minimum of 30 days of the application being submitted.
Given you completed the previous steps, submission of documents should be just a formality. All these documents should be submitted at once BEFORE your next company annual return. Miss the date, you will have to submit the annual return and financial statements.
How Much Does it Cost to Close a Company in Ireland
The final paycheck of company closure in Ireland encompasses the government fee of 15€ and the fee of placing a notice in a newspaper. In addition, if you apply for professionals assistance, you will be charged additional fee for their company shutdown services.
Currently, the company dissolution application can only be submitted online.
Once all relevant filings have been accepted by CRO, your company will acquire status “Strike-Off Listed” on the CRO website. During this time, any person can object to Irish company liquidation if at least one of the requirements for shutting down is not met.
After that, your company will acquire a “dissolved” status and will be completely shut down.
To sum up, closing a company in Ireland is not a complicated process that however requires some consistency and specific knowledge. Provided you mind all the required steps, you company strike off promises to be a smooth experience!
Disclaimer: The content of this page is for acquainting purposes only and is subject to change. It does not constitute any professional advice. No liability is accepted by Chern & Co for any actions taken or not taken in reliance on the information set out in this article. Professional, legal or tax advice should be obtained before taking or refraining from any action