Companies Bill to make it cheaper and easier to start a business – Corcoran Kennedy

“Businesses have been telling us that red tape and procedure make it extremely difficult to get started in Ireland. The Companies Bill 2012, announced today by the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, addresses these concerns, making it much simpler and a lot cheaper to get going”, says Marcella Corcoran Kennedy, Fine TD for Laois/Offaly and Chair of the Oireachtas Jobs Committee.

“Reforms introduced in the Companies Bill 2012 will benefit 12,500 start-ups in Ireland every year by reducing red tape and making company law obligations easier to understand. We want to make Ireland the best small country in the world to do business and making it easier to access the market here is part of this goal.

“The vast majority of companies in Ireland are private companies limited by shares and for that reason they will be placed at the centre of the legislation. Some of the most important reforms that will affect private companies limited by shares include allowing companies to have one director rather than two and the company will not be required to hold a “physical” AGM which was the case even for very small companies.

“The bank will no longer require a company to establish, at their own cost, that they have the legal power to borrow money. Companies will be able to avoid seeking High Court approval for certain activities, audit exemption has been extended and all offences under company law have been streamlined into four categories with category 1 being the most serious, and carrying a maximum fine of €500,000 or a maximum term of imprisonment of 10 years.

“Probably the most practical reform is a change in filing annual returns. It will now be possible to do this online in full, reducing costs for all businesses.

“Any company will also be able to convert from its existing company type to any type providing flexibility and greater options to companies which find a change in their circumstances.

“Anybody who has a business knows the difficulties that existed in Ireland up until now. This Bill a staggering 17 Companies Acts brings into one and makes like much easier for our business owners and entrepreneurs.

“ Two thirds of all new jobs in Ireland come from start-up SMEs in their first five years of existence so it is essential that we make it as easy as possible to set up a business here. Following detailed discussions with small and large business owners, trade union representatives and leading legal and accountancy professionals, the Company Bill 2012 was put together.

“This is a landmark Bill that will change how business is done in this country. Over 80,000 jobs have been created since the launch of the Action Plan for Jobs and I believe that this Bill will be instrumental in bringing us one step closer to the goal of creating 100,000 jobs.”