What is changing?
The Companies (Accounting) Act 2017 (the “2017 Act”) has been in force for a number of years, however, certain aspects of this legislation are yet to be commenced, one of which is a subsection of Section 78 which will introduce certain changes to the exemptions for unlimited companies in relation to statutory filings.
Under Section 78(2)(a)(iii) of the 2017 Act, an unlimited company that is a holding company of a limited liability subsidiary (regardless of where it is domiciled), will fall under the expanding classification of a “Designated Unlimited Company” (the “New Classification”) and will be required to file financial statements with the Companies Registration Office (CRO).
Under the legislation currently in force, a Designated Unlimited Company is a company that is a subsidiary of a limited liability undertaking, or a company where all of its shares are held by a limited liability undertaking.
A limited liability undertaking under Section 78 of the 2017 Act includes limited companies and limited partnerships or an undertaking which is not governed by the law of the state, but which is comparable to a limited company or a limited partnership.
These new filing rules will apply to unlimited companies that fall under this New Classification for financial years commencing on or after 1 January 2022.
Unlimited companies that currently enjoy non-designated status should examine their group structures to determine whether they will be subject to the new filing rules. They should also consider the benefits, if any, of retaining unlimited liability status on an ongoing basis.
At LK Shields, we have a highly skilled company secretarial team who can assist you in ascertaining whether these new rules will apply to your company.
If your company or its officers require assistance with any of their statutory duties, our experienced company secretarial team is ready to assist. Please contact a member of our team.
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