The Minister for Enterprise, Trade and Employment, Peter Burke TD, has announced the commencement of Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024.

This key provision introduces a more flexible audit exemption regime for small and micro-sized companies in Ireland.

Under the previous rules, companies automatically lost their audit exemption if they filed their annual return late with the Companies Registration Office (CRO), even once.

The new regime changes this by allowing one late filing within a five-year period without triggering the loss of audit exemption.

The new rules mean that small companies will only lose their audit exemption if they file late and have also filed late at least once before in the previous five years.

Companies will still incur late filing fees regardless, but this reform ensures that a once-off oversight doesn’t lead to disproportionate regulatory consequences.

Section 22 replaces Section 363 of the Companies Act 2014 and includes a transitional measure—any late filing before the introduction of the new rules will not count as a prior failure. The Government says this update reflects its commitment to supporting small businesses, reducing red tape, and ensuring a fair and efficient regulatory environment.