Highest number of companies incorporated since 1998 shows confidence in the economy
Companies saved €6.5 million by filing electronically in 2016
The Tánaiste and Minister for Enterprise and Innovation Frances Fitzgerald T.D today (Thursday) published the Companies Registration Office (CRO) Annual Report for 2016.
The report shows that 20,951 new companies were incorporated in 2016, the highest number of company incorporations in any one year since 1998.
Also included in the CRO’s annual report:
· There were 207,677 companies on the Register at the end of 2016 up from 201,901 in 2015.
· There were 197,000 Annual Returns 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. 14 of these companies returned to trading whereas 6 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.
· 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.
Tanaiste 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
CRO 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 (private company limited by shares) while 1,720 companies converted to DAC (designated activity company limited by shares).
The 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.
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.
Editors Notes:
Companies Registration Office Annual Report 2016
The main functions of the CRO are:
· The incorporation of companies and the registration of business names (trading names)
· The receipt and registration of documents relating to those incorporated companies/registered business names
· The enforcement of the Companies Act where submission of annual returns not made
· The publication of statutory information submitted to the CRO.
Mandatory online filing for the following CRO forms was introduced on 1st June 2017:
· Form B1 – Annual Return form together with any attached financial statements
· Form B2 – Change of Registered Office
· From B10 – Change in director/secretary information
· Form B73 – Update Annual Return Date
Year New Companies incorporated: New Business Names registered
1998: 20,874 8,536
2003: 14,264 17,826
2008: 14,723 26,557
2013: 15,506 25,795
2014: 17,782 25,633
2015: 19,404 27,799
2016: 20,951 24,848
Year Documents submitted Submitted electronically %
2003: 348,259 15,788 4.5
2008: 395,198 166,815 42
2013: 385,429 252,596 65.5
2014: 404,457 269,598 66.5
2015: 437,859 302,421 69
2016: 515,703 352,651 68
Liquidations initiated Year Members (Solvent) Creditors & Court (insolvent)
2003: 941 377
2008: 1,051 613
2013: 848 1,119
2014: 1,001 1,007
2015: 1,034 816
2016: 1,112 642
Year Receiverships Examinerships
2003: 36 11
2008: 56 48
2013: 553 41
2014: 462 27
2015: 327 21
Year Involuntary Strike-off
2003: 14,836
2008: 5,804
2013: 7,077
2014: 6,840
2015: 3,072
2016: 8,302