The Companies (Accounting) Act 2017 amended the definition of a designated unlimited company. A designated unlimited company is required to file its financial statements with the Companies Registration Office.
The 2017 Act contained a provision that unlimited companies, which are holding companies of undertakings whose members have limited liability, are deemed to be designated unlimited companies. This provision will take effect for financial years commencing on or after 1 January 2022.
Any unlimited companies with limited liability subsidiaries will be required to file its financial statements for financial years commencing on or after 1s January 2022. This will have a significant impact on these companies who may not have had to file financial statements previously.
Converting to an Unlimited Company
If a company is considering converting to an unlimited company, the main reason is usually to avail of the exemption from filing financial statements, the company has a very tight window to do this.
If a company wants to convert to unlimited, it must apply within 3 months from filing its financial statements with the CRO to convert to an unlimited company. Otherwise, the company will have to file the next set of financial statement first and then convert to unlimited. This might be too late for the company as often that will be the set of financial statements they do not want to file.
If you require assistance with converting a company to unlimited, please feel free to contact me we would be delighted to help.
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