The Companies Registration Office (CRO) Annual Report for 2016 shows that 20,951 new companies were incorporated in 2016, the highest number of company incorporations in any one year since 1998.
The CRO’s annual report also shows that:
- There were 207,677 companies on the Register at the end of 2016 up from 201,901 in 2015;
- 197,000 annual returns were filed;
- The downward trend in the number of liquidations initiated continued with 1,754 notices registered as compared to 1,850 notices in 2015. Of these 1,754 liquidations, only 642 related to insolvent companies compared to 816 insolvent company liquidations in 2015;
- 20 companies went into examinership in 2016. Fourteen of these companies returned to trading whereas six entered liquidation;
- 340 receiverships were initiated in 2016. This was a small increase from 327 in 2015 but is in line with a general reduction since 2012, when 654 receiverships were initiated;
- The number of new business names registered by the CRO in 2016 was 24,848;
- 90% of companies were up-to-date in filing their annual returns at the end of 2016;
- 8,302 companies were struck off the register during the year due to their failure to file annual returns; and
- The income of CRO for 2016 was just over €20 million which included €10,088,000 in penalties paid by companies who were late in filing their annual returns.
Commenting on the report, Tánaiste and Minister for Enterprise and Innovation, Frances Fitzgerald T.D. said: “It is very heartening to see an increase in the number of companies being incorporated in 2016, the highest number since 1998, this shows that our entrepreneurship policies are working and that confidence in the economy is growing. I also welcome the work that CRO staff have undertaken to ensure that the turnaround for receiving annual returns has decreased to within a week. This is a fine example of how changing processes and bringing in efficiencies can work. I would encourage those thinking of setting up a business to do so and remind them that from 1st June 2017, filing online – which is cheaper and speedier – is now mandatory for certain forms.”
E-filing
The CRO has continued to drive e-filing as the preferred method of filing, as it has significant efficiency and costs benefits for presenters and for the CRO. It is cheaper to file documents online – the annual return is €20 to file online, compared to €40 to file the paper version while the change of director form is free to file online, compared to €15 to file a paper form. Overall, companies saved over €6.5 million by filing electronically in 2016.
During 2016, 173,489 (88%) of annual returns, 57,326 (81%) of change in director/secretary information and 14,553 (85%) of change in registered office details were filed electronically.
Conversions
December 2016 saw the end of the transition period for existing private companies to opt for one of the new company types provided for in the Companies Act 2014. During the transition period, 37,644 companies converted to LTD. status (private company limited by shares) while 1,720 companies converted to DAC status (designated activity company limited by shares).
Companies Act 2014 also required unlimited companies and companies limited by guarantee to change their name to include the company suffix. 4,294 companies effected the name change during the transition period.
Lastly, 120,111 companies which did not take action during the transition period had their status automatically updated by the Registrar and were issued a new certificate of incorporation.