A: Existing companies, like yours, must decide, within the 18 months after 1 June 2015, whether to become a new private companies limited by shares (LTD) or become a designated activity company (DAC). If, by the end of that period, an existing company has not chosen one of these options, it will automatically become a LTD.
Depending on the type of business you are it may be advisable to convert yourself to a LTD, so as to not restrict your company’s activities during and after the transition period. Also, if you wish to become a DAC you will have to elect to do so, therefore you will need the assistance of your accountant.
In deciding what type of business you wish to convert to, you may need to consult with any or all the stakeholders of your business for their input, i.e. other shareholders, loan creditors etc. Advice on this matter should also be sought from your accountant.
No fees will be charged by the Companies Registration Office (CRO) for companies converting, its proposed to allow the documents to be filed for free.
If you would like any advice, please feel free to contact us and we can put you in touch with your local TaxAssist Accountants office.
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.