Due diligence on an Irish company means verifying its legal status, directors, financial health, and CRO compliance before entering into a business relationship. This guide covers the practical steps used by accountants, solicitors, and businesses to assess an Irish company. Start with our company due-diligence search and report page.
Step 1: Verify CRO Registration and Status
Search for the company on Businesses.ie using its name or CRO number. Confirm:
- Status is "Normal": The company is active and compliant. Any other status — Struck Off, In Liquidation, In Receivership — is a serious red flag. See what each CRO status means.
- Company type: LTD, DAC, PLC, CLG — each has different governance and liability structures
- Incorporation date: A newly incorporated company has no trading history to assess
- Registered address: Confirm it matches what the company claims
Step 2: Review the Directors
Use the director search tool to check:
- Who the current directors are
- How long they have been appointed
- What other companies they are or were directors of
- Whether any of their other companies have been struck off or are in liquidation
A director with a history of failed companies is not necessarily disqualified, but it warrants further investigation. Check for any disqualification orders through the Office of the Director of Corporate Enforcement (ODCE).
Step 3: Analyse Financial Statements
Review the most recent financial statements filed with the CRO. Key metrics:
- Net assets: Assets minus liabilities. Negative net assets may indicate insolvency
- Revenue trend: Is turnover growing, stable, or declining? (Only visible in full accounts)
- Profit/loss: Consistent losses suggest the business may not be viable
- Creditor levels: High creditors relative to debtors indicates potential cash flow problems
- Director loans: Large amounts owed to or by directors require explanation
Learn how to interpret these figures in our guide on reading Irish company financial statements. For specific questions, see how to check turnover and profit, debts and liabilities, and the average employee number.
Step 4: Check Filing Compliance
Companies that file late or miss filings are at higher risk:
- Check the most recent filing date — if the last B1 is more than 14 months old, the company may be non-compliant
- Look for gaps in filing history — a company that stops filing and then resumes may have been through a difficult period
- Check whether financial statements were filed on time — late filing triggers loss of audit exemption, increasing the company's costs and suggesting poor management
Step 5: Verify VAT and Tax Compliance
While the CRO does not publish tax information, you can:
- Request a tax clearance certificate from the company (Revenue issues these to compliant taxpayers)
- Verify the company's VAT number using the EU VIES system
- Ask for confirmation of employer registration if the company claims to have employees
Step 6: Check for Charges and Mortgages
The CRO register records any charges (mortgages, debentures) registered against the company's assets. These indicate secured borrowings. A company with heavy charges may have limited unencumbered assets available to satisfy unsecured creditors.
Due Diligence Checklist
- ☐ CRO status confirmed as "Normal"
- ☐ Company type and incorporation date verified
- ☐ Registered address matches claims
- ☐ Directors checked — no pattern of failed companies
- ☐ Most recent annual return filed within the last 12 months
- ☐ Financial statements reviewed — net assets are positive
- ☐ No signs of insolvency (negative equity, high creditors)
- ☐ VAT registration verified (if applicable)
- ☐ Tax clearance certificate requested
- ☐ Charges register checked
Summary
Effective due diligence on an Irish company covers CRO status verification, director background checks, financial statement analysis, filing compliance review, and tax verification. All CRO data is accessible through Businesses.ie, and a consolidated Irish company report can make the first review easier. For high-value transactions, supplement CRO checks with legal advice and credit reports.
Use the more focused checklist for onboarding an Irish supplier, or the extended guide to due diligence before buying an Irish company.
For legal and ownership scope, add the guides to Irish company court and legal-proceeding checks and parent, subsidiary and group-structure research.