Companies Act Comes into Force - 1 June - SFA PR

Monday, 1 June 2015

New Companies Act commences today

Small Businesses need to take action

The Small Firms Association (SFA) has welcomed the commencement of the Companies Act 2014 today, 1 June 2015.

Patricia Callan, SFA Director, stated: “The new Companies Act represents a simplification and modernisation of company law in Ireland. It has the potential to reduce red tape and make it easier to operate a business in Ireland, with potential benefits for current and aspiring owner managers and for our economy and society as a whole. The new Act replaces the current mosaic of legislation, which has proliferated around the original 1963 Companies Act, with a single rulebook. The SFA in particular welcomes the creation of a new private limited company (LTD) type, which is a much simpler construct than previously existed."

“The new Companies Act puts smaller firms at the heart of the regime for the first time – but businesses need to understand the changes and take a number of actions if they are to reap the full benefits,” Callan cautioned.

Specifically, the SFA urges small businesses to:
    • Decide whether their business should convert to one of the new company types introduced by the Act
    • Switch over to their preferred company type as early as possible
    • Check if their company qualifies for an audit exemption
    • Clarify whether their financial statements should be filed under the new or the old Act

Callan concluded: “Companies have 15 months from today as a transition period to comply. It is important to be proactive and think about what is right for the future of your business before the deadline expires.”

Ends

For queries and interviews, please contact: Patricia Callan, Director, Small Firms Association, e-mail: patricia.callan@sfa.ie, tel: 087 6999345, Twitter: @SFA_Irl
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