Roderic O'Gorman (Dublin West, Green Party)
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51. To ask the Minister for Enterprise, Trade and Employment if there is a backlog in compliance checks being carried out by the Companies Registration Office; any assessment that the Department has made of the potential reputational risk this poses to Ireland’s standing as a jurisdiction with low corruption, robust corporate oversight, and a secure regulatory environment for doing business internationally; and if he will make a statement on the matter. [21293/25]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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At the outset, it may be useful to give some sense of the scale of material dealt with by the Companies Registration Office (CRO). At present, details are held on over 300,000 companies, more than 600,000 business names and the beneficial ownership records of over 280,000 entities, in addition to details on smaller numbers of limited partnerships, trade unions, industrial and provident societies and friendly societies. During 2024, the CRO dealt with over 560,000 submissions, over 95% of which were submitted online.

The CRO operates a good faith register and the long-standing policy of the CRO has been to accept the bona fides of those filing documentation. However, it is important to emphasise that the provision of false information to the CRO is a criminal offence under the Companies Act 2014 and is subject to prosecution by the Corporate Enforcement Authority.

The CRO does, however, undertake checks to ensure that all necessary documents have been provided and have been appropriately completed and signed. The CRO has developed a Risk-Based Integrity Checking Process for applications for incorporation and notifications of appointment of directors. The CRO actively follows-up on issues arising and makes referrals, where appropriate, to the Corporate Enforcement Authority. The CRO also liaises with the Anti Money Laundering Compliance Unit of the Department of Justice where concerns arise regarding those entities who provide company secretarial services to companies, so called trust and company service providers (TCSPs). Since June of 2023 the CRO has collected the PPS numbers of directors when companies are being incorporated or when changes of directors are notified by the company. The PPS numbers of directors are also collected when a company files its annual returns. The collection of PPS numbers is an important tool for validating the identity of those who have been appointed as directors.

There are no significant backlogs in the various checks being carried out by the CRO. For example, new company registrations have a target of 5 working days for Fe Phrainn applications and 10 working days for ordinary online applications. While these targets may slip from time to time due to high volumes and staffing issues, the timeframes are currently being met.

The CRO continues to monitor companies for compliance with their statutory filing obligations and to enforce filing obligations under the Companies Act 2014. All Annual Returns filed late are subject to a late filing fees and the CRO received a total of €9.7m in late filing fees during 2024. Where appropriate, a company filing a late Annual Return also automatically loses its audit exemption. The CRO has recommenced involuntary strike off on a limited basis. The current focus is on companies who have no registered directors and will subsequently move on to companies who have failed to file annual returns and those who have failed to register beneficial ownership information with the Registrar of Beneficial Ownership.

Ireland has a reputation for being a well-regulated and business friendly country to establish and operate businesses and I am keen to ensure that this is maintained and even enhanced. Corporate law is kept under review on an ongoing basis and is updated / modernised, as required, most recently by the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024. This is in a context where we seek to maintain an appropriate balance where business can set up and operate without unnecessary or costly burdens but within an effective, proportionate and robust regulatory framework. This is particularly important in an Irish context where c. 95% of entries on the Companies Register are classified as SMEs.