The strike-off procedure for companies that fail to file annual returns on time is to be initiated earlier from now on, the Companies' Registration Office said yesterday.

The current practice is that the strike off procedure is initiated 400 days after the date for the filing of the return has passed. Over the next four months, the period will be reduced to 300 days. The strike-off procedure itself lasts approximately six months.

The registrar of companies, Paul Farrell, said the aim was to encourage greater compliance rather than to strike off firms. He said most companies filed returns on time and the change would not be an issue for them.

However, he said those companies that miss their annual return dates tend to do nothing until the ensuing 400-day period is coming to an end. "Having a gap over a year long between an unfiled annual return and the start of the procedure is serving no-one's interest and is allowing non-compliant companies to operate too long," he said.

The strike-off process involves warning letters, a strike-off notice, and a published notice of intention to strike off. Mr Farrell said that for the time being, the length of time the strike-off procedure takes would not shorten.