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What to Do If Your Company Missed the Annual Returns filing date?

Missing your Annual Return Date (ARD) with the Companies Registration Office (CRO) can be stressful, but don’t panic! While it’s crucial to act quickly, there are clear steps to take in order to get back on track and minimize penalties or consequences. In this blog, we’ll walk you through the next steps if your company missed its Annual Returns Deadline.

If the company’s first annual return is late, you will have to pay the late filing fees BUT your Company does not lose its entitlement to audit exemption! (see Section 349)

File your annual returns late and pay the late filing penalties that will occur and put steps in place as to not miss the filing for deadline in the future.

Apply to the District Court for an extension  

Where a company misses the filing deadline it can apply to the District Court where its registered office is located and apply for an extension to its filing date.  If granted by the District Court the return, when filed in the CRO, will be deemed to have been filed on time and your company will retain its audit exemption entitlement.

We can assist with an application to the District Court for an extension to your filing date under Section 343 of the Companies Act 2014 (where applicable).

Loss of Audit Exemption

The audit exemption typically applies to companies that meet specific criteria, such as being below certain turnover, asset, and employee thresholds. Companies must still meet certain compliance standards, like filing annual returns with the CRO, but they are spared from the more detailed scrutiny of an audit. This balance of regulation allows small businesses to stay compliant without the need for an audit.

For Companies having already passed their first Annual return filing, submitting their annual return late can result in the loss of audit exemption for two consecutive years.

Section 343 of the Companies Act 2014 deals with situations where a company fails to file its annual returns with the CRO and the potential legal consequences for its directors.

Key Points about Section 343:

1. Directors’ Responsibility: If a company fails to file its annual return on time, Section 343 holds the company and its directors accountable. They may be required to appear in court and can be penalised if the company is non-compliant.
2. Penalties for Non-Compliance: Failure to file the annual return can lead to a fine of up to €5,000 for a company or its  directors. If convicted in the District Court, the penalty could include a fine or even imprisonment (up to 6 months), depending on the circumstances
3. Striking Off: If the company continues to be non-compliant and does not file the required documents, the CRO may initiate proceedings to strike the company off the register. In such cases, directors may face additional consequences for failing to ensure compliance.

Review the Reason for the Missed Deadline

Understanding why the late filing occurred is essential for preventing a repeat occurrence. Consider the following:

• Internal Miscommunication: Did different departments fail to coordinate the submission? Or was there a lack of oversight?
• Staffing Issues: Did you have the necessary resources or team members available to complete the filing on time?
• Operational Hurdles: Were there complications in preparing the financial statements or Annual Return?

By identifying the root cause, you can implement corrective measures to avoid similar delays in the future.

Now could be the right time to streamline your Company Secretarial matters and have Crowley Corporate Services responsible for your filing and avoid the consequences of late filing in the future.

Notify Key Stakeholders

Implement Preventative Measures for the Future

Once the immediate issue is handled, it’s time to focus on preventing future delays. There are several measures you can put in place to ensure the next ARD is met on time:

• Set Calendar Reminders: Use tools like Google Calendar or project management software to set reminders about filing dates well in advance.
• Regular Check-ins: Ensure regular internal check-ins with your finance team to track progress on annual filings.
• Designate a Responsible Person: Appoint someone in your company to be responsible for monitoring and managing the filing deadlines.
• Automate Alerts: Some accounting or filing software can send automatic alerts when important deadlines are approaching.

Assess the Impact of the Delay

After the annual return is submitted and the late fee paid, it’s a good idea to assess the overall impact of the missed deadline. This includes:

• Reputational Risks: Will the delay affect your company’s reputation with stakeholders or clients? If so, communicate the steps you’re taking to ensure this doesn’t happen again.
• Financial Consequences: Have the late fees added up? Will this delay have any effect on financial statements, loans, or other financial matters?
• Legal Implications: For some companies, especially publicly listed ones, the delay may have legal consequences. It’s crucial to consult with legal advisors if necessary.

Pay Attention to Future Compliance Deadlines

Finally, make sure your company stays compliant with all future filing deadlines. Missing an ARD multiple times could lead to more severe consequences, including:

• Severe Long-Term Consequences: Striking Off from the Register: Continued failure to file annual returns could result in your company being struck off the CRO’s register, meaning it would no longer be a legally recognised entity.
• Legal and Financial Penalties: Persistent non-compliance can attract serious fines or even legal action.

Staying on top of your company’s compliance calendar will help avoid any long-term repercussions.

Conclusion

Disclaimer: Specific advice should be obtained in relation your company / query as the above advice is general in form.  All our blogs are provided for educational and practical purposes and should not be treated as professional / legal advice. For any specific queries you may have please contact our office.