Company Registration in Ireland
Contributed by LSC & Partners
15 November, 2019
Republic of Ireland
One of the Lowest Corporate Tax Rates in the whole European Union - only 12.5%!
With our all-inclusive Irish Head Office package, company formation in Ireland has never been easier!
Our team takes care of administration, leaving you free to focus on launching and managing your company successfully!
Ireland is a very suitable jurisdiction for companies to be based in whilst acting in commercial transactions. There are a number of structures available which allow an Irish entity to be used in worldwide commercial transactions whilst minimising the exposure to Irish tax. It is relatively easy and inexpensive to form a company in Ireland and there are many advantages to having a company here, such as:
- Having a company in Ireland allows you to be part of the EU in an English-speaking country;
- Access to all the EU trade & customs agreements between Ireland and other non-EU countries;
- Access to over 73 double tax treaties;
- Cross Border VAT registration with simplified administration;
- Easy distribution of goods and services;
- EURO currency bank account;
- Low corporate tax rate of less than 12.50% after deductions;
- A large variety of tax reliefs and incentives aimed at attracting foreign companies. Read more about Setting up a company in Ireland. You can speak to our Ireland business expert here.
Provision of EEA Director
All company types must have one secretary and a minimum of one director. One of the directors is required to be resident in a member state of the European Economic Area (EEA).
For those residing outside the EEA, there are two options. Either you can purchase a bond, which insures the company against fines for any offences under the Companies Act, this bond would need to be renewed every 2 years. The other option would be for the Irish company to appoint a non-executive or "nominee" director to the board to satisfy residency requirement.
Main Benefits to Set Up your Business Company in Ireland
- The company has a legal existence separate from management and its members
- Members' liability is limited
- The company's name is protected - Incorporation of a limited company protects it from use by another limited company
- It has flexible borrowing powers
- The company continues despite the death, resignation or bankruptcy of management and members
- The interests and obligations of management are defined
- Ireland's Corporate Tax Rate of 12.5% is one of the lowest in the world
- New shareholders and investors can be easily assimilated
- Employees can acquire shares
- Appointment, retirement or removal of directors is straight forward
- Taxation: sole traders pay income tax. Sole traders' income is taxed as the proprietor's income, regardless of how much profit is retained as working capital, and interest on loans to the business is taxed as income
- Directors pay income tax and the company pays corporation tax on company profits, and with current rates of tax company profits earned and retained in the business are assessed to corporation tax at lower rates than if income tax were payable on equivalent profits earned by an unincorporated business
- Setting up a limited liability company offers just that - limited liability
- Shareholders in a limited liability company are only liable to lose the share capital they subscribe
- For sole traders and in partnerships, the individual's personal assets are at risk if there is a claim against the organisation
- A company is a legal form of business organisation. It is a separate legal entity and, therefore, is separate and distinct from those who run it. The company (and not the shareholders) is the appropriate person to be sued in the event that debts are incurred by the company which remain unpaid, despite demand
- Scope for greater company pension scheme to be secured through a limited company
- A limited company has a greater ability to raise finance by the issue of shares
- Shareholders looking for outside investors to invest may be able to take advantage of the tax incentive Relief for Investment in Corporate Trades, otherwise known as the Business Expansion Scheme (BES). The scheme provides individual investors with tax relief in respect of investment in certain manufacturing, service, tourism, research, constructing and certain music recording activities. This can substantially reduce the cost to an investor or his investment. It also enhances the ability of eligible companies to attract outside investment.
- Ownership of a limited company can be spread over a greater number of people
- Personal tax advantages can accrue for directors of a limited company
- There may be a greater degree of business credibility of trading through a limited company
- The rights of shareholders are normally clearly defined and protected
- Unlike a sole trader or partnership, a Limited company has a separate legal identity - this means that it is the company itself which owns property and that it is the company which may sue and/or be sued in respect of the business of the company
- The company continues to trade irrespective of director or management changes until the company is wound up
- There is limited liability, and should the company fail, the liability of shareholders is limited to the amount of share capital they contributed
- Personal assets of directors or shareholders cannot be used to pay off company debts
Should you have any question or matter You would like to discuss or clarify with us, or should you like to receive full information Report on this jurisdiction - contact us now!
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