Audit exemption rules relaxed for small and micro companies

BDO Ireland
Insights
2025
Audit exemption rules relaxed for small and micro companies

The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 was enacted and signed into law on 12 November 2024, marking a significant update to Ireland’s corporate regulatory framework with the majority of the Act’s measures coming into effect in December 2024, as announced by the Minister for Enterprise, Trade and Employment.

One of the most notable changes introduced by the Act is the reform of the audit exemption regime for small and micro companies.

Before the commencement of this legislation, companies automatically lost their audit exemption if they filed their annual return late. This Act replaces this with a graduated regime, meaning that the audit exemption will only be lost if a company files late more than once within a five-year period.

This change aims to reduce the administrative and financial burden on small businesses, many of which faced disproportionate consequences for a single late filing. By introducing a more lenient and practical approach, the Act supports better compliance without penalising companies.

The commencement of the changes to audit exemption under the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 is anticipated by the end of Q2 2025, but has been deferred with no current agreed date stipulated.

As these changes take effect, we at BDO will continue to keep you appraised. We are here to support your business in staying compliant with such legislation through the provision of annual compliance support services. We can assist you with:

Preparing your company’s annual return
Filing your company’s financial statements
Preparing your company’s financial statements
With meeting deadlines at the forefront.