New law in place to cut red tape

Business organisations have given a broad welcome to a new legislative Act that comes into force tomorrow, saying it will reduce unnecessary red tape and bureaucracy for small business.

The Companies (Accounting) Act 2017 introduces a new category of company — a micro company — with the Government claiming it will greatly reduce the financial reporting obligations on very small companies.

The Act increases the thresholds for the small company category so that more companies will qualify as small in the future, thus becoming eligible for cost-saving provisions such as the audit exemption.