The voluntary strike-off in Ireland represents one of the legal ways through which a company can be shut down. The voluntary strike-off is one of the dissolution procedures available in Ireland which can be selected, provided that certain conditions are met, as described by the Section 731 of the Companies Act 2014. Our team of specialists in company formation in Ireland can assist investors who have registered a business in this country with in-depth advice on the steps that have to be followed during the voluntary strike-off.
What are the main legal conditions for voluntary strike-off in Ireland?
The main legal grounds on which voluntary strike-off can be requested in Ireland are given by the company’s operating activities. Thus, the voluntary strike-off can be started if the company never traded after completing the procedure of company registration in Ireland or if it stopped trading at a given time. Provided that the company does not have any debts towards the creditors, it may request the Registrar of Companies to start the procedure. The Irish voluntary strike-off can be started if the following criteria are met:
- • the company can provide relevant information to the Registrar that it no longer carries out trading activities (or that it never had any);
- • the company submitted the necessary form (Form H15), signed by all the company’s directors;
- • the company submitted its annual returns, as stated by the Section 343 of the Companies Act;
- • the Revenue Commissioners sent a written confirmation to the Registrar, in which it states that it does not object to the voluntary-strike off procedure;
- • the company wishing to start the voluntary strike-off places an advertisement in one of the country’s national newspapers, announcing its deletion from the local Registrar.
What should an Irish company do prior to the voluntary strike-off?
As we presented above, the company that will apply for voluntary strike-off needs to complete a set of steps that involve several institutions. Prior to commencing the voluntary strike-off with the Registrar of Companies, the company’s representatives have to address several issues, such as preparing various company documents and contact relevant authorities. Our team of consultants in company registration in Ireland can advise investors on the following:
- • prepare the company’s annual accounts and annual returns (the latest versions of such documents have to be prepared prior to the voluntary strike-off);
- • prepare a director’s statement, which certifies the fact that the company never had business activities or it stopped trading, as it is the case;
- • draft the necessary documents which enforce the dissolution of the company (minutes of the board and the shareholders’ consent);
- • contact the Irish Revenue Commissioners, by sending a letter of no objection regarding the voluntary strike-off;
- • prepare the Form H15 and submit it with the Companies Registration Office (CRO).
The procedure can only be started by companies that have a total amount of assets (or liabilities) of maximum EUR 150. This has to be evidenced by the company’s latest balance sheet. At the same time, the company is not allowed to enter into this type of dissolution procedure if it is involved in a litigation (pending or ongoing).
What is the content of the Revenue Commissioners application?
The voluntary strike-off in Ireland involves the participation of the Revenue Commissioners, an institution which must provide its consent on the procedure. The company needs to send an application to the institution, and this must contain a set of information concerning the company’s current situation. Our team of specialists in opening a company in Ireland may inform investors on any requirements imposed by this institution.
In order for the Revenue Commissioners to issue the consent for voluntary strike-off, the company must present the below mentioned details (please note that applications that do not contain all the required data will be returned to the applicant):
- • the company’s trading name and the company’s number issued by the CRO;
- • the company’s tax registration number and the cessation date of the company;
- • a proof that the applicant company does not have any liabilities;
- • in the case of companies that never traded, the company’s representatives should provide information on the fact that the Irish business never received income that should be taxed;
- • contact information – the company’s official address, a telephone number and the e-mail address.
Businessmen are invited to contact our team of specialists in Irish company formation, who can assist in the procedure of voluntary strike-off; our representatives can also provide corporate services for any other type of dissolution procedures that are available under the Irish law; our consultants can advise both local and foreign entities operating on the Irish market.