For small and medium Irish companies, the audit exemption is one of the most valuable benefits available under the Companies Act 2014. It allows qualifying companies to avoid the cost of a statutory audit — saving thousands of euro each year.
But miss your annual return deadline, and you lose it.
What Is the Audit Exemption?
Under the Companies Act 2014, a qualifying company (generally one that meets two of three size criteria: turnover under €12m, balance sheet under €6m, fewer than 50 employees) can avail of audit exemption. This means the company does not need to have its financial statements audited by a registered auditor.
For most SMEs, the cost of a statutory audit ranges from €3,000 to €10,000 or more per year. The audit exemption, therefore, represents a significant ongoing saving.
How Is Audit Exemption Lost?
Your company loses its audit exemption for a minimum of two consecutive financial years if:
- The annual return is filed late (even by one day)
- You fail to file at all in a given year
The penalty applies automatically — there is no discretion. The CRO does not warn you first.
Can You Get It Back?
Yes — but only through a Section 343 District Court Application.
A successful Section 343 application not only grants an extension of time to file overdue returns but also restores your audit exemption for the relevant period. This is the only legal mechanism available to reverse the loss of audit exemption.
Why Acting Quickly Matters
Every month you delay costs money. If your audit exemption has been lost, your next set of financial statements will require a full audit. That audit bill — potentially thousands of euro — can be avoided by acting now.
At LateAnnualReturn.ie, our Section 343 service is available for a flat fee of €749.99, covering everything from court affidavit to CRO filing. The saving on audit fees alone typically pays for our service many times over.
Apply today to find out if your company qualifies.