Question:
We have a client in which there is a LTD Company that is 100% subsidiary of an ULC. Is it correct that from the 01st of Jan 2022 the ULC will be required to file financial statements if at any stage in the year it holds shares in a LTD Co, and will continue to do so until the Ltd Co becomes an ULC.
Answer:
You are correct that this ULC will need to file financial statements as it is a “designated ULC” under s1274(2)(a), as it is a holdco for a limited company. This means it cannot avail of the exemptions from filing that non-designated ULCs can, and it will need to file accounts, audited if necessary, with the CRO.
This will continue until the ULC is no longer a “designated ULC” – effectively where all members of a group are ULCs, and there’s no limited liability provisions for any group member.
This was a CAA2017 provision, albeit delayed until 1 January 2021. If you were able to do a set of accounts with a period ended 30 December 2021, rather than 31 December, then you’ll get another year out of the exemptions before they change, but beyond that, you’ll need to file accounts.