Over 12,000 start-ups in Ireland every year will save a total of more than €6 million in professional fees associated with a company, as a result of some of the reforms to be introduced as part of the Companies Bill 2012, published last Friday December 21st.
Changes included in the new Companies Bill will mean that most of the 12,500 private limited companies which are established every year will be able to incorporate more easily, resulting in average savings of €1,200 in professional fees, resulting in substantial improvements to the ease of doing business in Ireland by comparison to other European countries.
One of the stand out features and changes in the bill is the ability for a company to have only one director – there will no longer be a requirement to have a second director merely to comply with a requirement of the law.
Also private companies for the first time be able to engage in mergers and divisions where as up until now under the old law, there is no facility for two Irish private companies to merge.
The Bill also states SMEs will now be able to apply to the Circuit Court for examinership.
Any company will now be enabled to convert from its existing company type to any other company type which can be formed under the Bill. This will provide flexibility and greater options to companies which find a change in their circumstances.
The Companies Bill 2012 is the culmination of over 12 years’ work. It is 1136 pages long, consolidates over 25 enactments and reforms Irish company law as we currently know it.
Currently the Bill is only a piece of proposed legislation awaiting enactment by the Oireachtas. Since there is some distance to go before enactment and commencement, there are no particular steps that the director or owner of a company needs to take at this stage but we here at QED training are delighted with any legislation that makes it easier to do business here in Ireland and abroad.