Registering a company in Ireland has become a fairly popular method of establishing a business in one of Europe's developed countries. This is due to a competitive capital gains tax rate (12.5 percent) and an open trading approach. We conducted a detailed analysis of the procedure for forming a company in Ireland, its features and requirements, and also described the various types of companies that can be formed.
Advantages of establishing a business in Ireland:
- Corporate tax rates are preferential - 12.5 percent on trading profits (0 percent until 2022 for certain types of businesses that meet the relevant requirements).
- A large network of more than 70 double tax treaties, including one with the United States.
- Member of the EU, EEA, and the Eurozone's sole English-speaking jurisdiction.
- An economic and political environment that is stable.
- It is possible for a non-resident to register an Irish company.
- Online company registration in Ireland is possible.
All of this makes the process of forming a company in Ireland appealing to foreign entrepreneurs.
OPF types available in Ireland
In Ireland, the following types of companies can be registered:
- Ireland Limited Liability Company Registration
The appointment of a local director to manage the company on behalf of its shareholders will be the first step in this direction. If the company is small, the shareholders may serve as directors.
When the company is managed by a single director, the need for a secretary arises. If the organization's structure includes two or more founders, one of them may serve as secretary. An outsourcing company can also perform the functions of the secretary. The secretary's main function is to submit annual declarations on time; if this is not done, the company can be fined up to 1200 EUR.
The Ltd structure must include at least one shareholder. As a shareholder, there may be a director or a secretary.
The next step in forming a limited company in Ireland is to establish a registered office, which is the address to which all of your organization's business correspondence will be sent.
Then you should come up with a name for the company. It must be a unique name that is not in use elsewhere in the country. Your application may be rejected if the name you choose is not sufficiently unique.
New businesses in Ireland must be enrolled with the tax department so that they can begin trading. Such that, you should have finished the IRS tax registration process until you can bill your client.
Only after the majority owners receive an individual government service number (PPSN) or accomplish the BEN2 form will the registration procedure be considered complete.
Financial reporting is not required the first time the annual declaration is submitted, which is half a year after the enterprise's registration in this jurisdiction. The company must submit all components of the annual accounts within 56 days; if this is not done on time or some elements are missed, the company will be fined.
- Creating a PLC in Ireland
A Public Limited Company is formed if it is necessary to obtain a public listing on the Irish stock exchange and can provide its shares to the general public. The minimum number of shareholders is seven, and their liability is restricted to the extent they contributed. Shares in this type of organization can be bought and sold rapidly because they are freely transferable. There are some restrictions on the amount of PLC capital - a minimum of 39,000 EUR before the campaign launch, with a quarter of this amount fully paid.
- In Ireland, a company limited by guarantee (CLG) (Company Limited by Guarantee) is formed.
The procedure for registering a CLG in Ireland entails forming a private company with at least seven members. They are liable in proportion to the amount they will contribute in connection with the organization's liquidation, but this amount must not exceed the amount specified in the memorandum. This format is appropriate for charitable and professional organizations. A company limited by guarantee is a non-public organization with an authorized capital and a maximum number of shareholders of 99.
- Creating an LP in Ireland
A Limited Partnership is not a legal business distinct out of its owners. According to Irish restricted partnership law, individuals or groups or legal entities may shape a limited partnership. The total number of partners should not surpass 20: one should be a sole proprietor, and the rest will be private limited partners.
The liability of the LP's general partner is not limited; however, the liability of other participants is limited in proportion to their contribution to the company. In the company, only the general partner has managerial authority. Before registering an LP, one detail must be considered: the general partner must be a citizen of the jurisdiction, while the remaining partners can be foreign residents.
- IP registration in Ireland
Authorization as a sole trader is appropriate for new business owners because it is a simple process that does not necessitate large financial investments. Only Republic of Ireland residents have the right to register as an individual entrepreneur in Ireland.
- In the Republic of Ireland, a DAC company can be registered
This type of organization could be arranged as a private firm with restricted guarantees. A DAC firm, like every type of business, should have a memorandum or articles of incorporation. Such a structure may be exempt from audit. To establish a DAC business in Ireland, you should deposit a least authorized capital. At least two executives must be appointed, including one who must be a citizen of the jurisdiction.
- Registration of an Irish branch or representative office
Any type of business registered in any country in the world is permitted to establish a branch in Ireland. When registering a branch, you can use the parent company's name or create a new exclusive name. In this case, the parent company's registration date will be noted in the Irish branch's register.
To open a branch in Ireland, you will need the following documents:
- Copies of the foreign enterprise's statutory documents.
- Copies of the company's registration certificate.
- Director's list.
- Personal information about a person who lives in Ireland and is authorized to receive documents on the company's behalf.
- The location of the company's Irish branch.
The above documents should be accredited or apostilled, depending on the parent company's country of incorporation. Files in languages other than English or Irish should be translated and notarized. Those who need to expedite the process of starting a business in Ireland can purchase a fully prepared company in Ireland with an open account.
Opening a business account in Ireland
To access a corporate account with an Irish bank, one of the company's executives should meet with a bank employee in person. Another option is to open a payment system account for an Irish firm.
You must prepare the following documents before beginning the process of opening a business account in Ireland:
- original registration certificate;
- Legislative documents;
- bank forms completed;
- A1 form duplicate.
Ireland's company registration requirements
Certain legal requirements must be met when registering an enterprise in Ireland:
- Annual meetings are held.
- Annual declaration submission to the appropriate registration authority.
- Companies with a yearly revenue of more than 8.3 million euros are required to submit audited financial statements.
- Filing a corporate tax return once a year, and VAT every two months if necessary.
- Availability of substance in Ireland for VAT registration.
- One local or EU resident director.
- Possession of a registered office in the jurisdiction.
- The presence of a designated local secretary.
- The presence of a single shareholder (this is the minimum).
- The Registrar has approved the company name.
There is a requirement in Ireland for the minimum authorized capital to be at least 100 EUR. A company can issue 100 euros worth of shares.
Individual income tax rates range from 20% to 42 percent. The corporate tax rate is 12.5 percent. The VAT rate is 23%; however, for certain types of businesses, it can be reduced to 9%, 13.5 percent, or even zero.
Despite its small size, Ireland has grown in popularity among foreign investors as a place to establish a European firm. An LLC is the most popular type of Irish company formation in Ireland. The most important thing to remember when registering any type of enterprise is whether its structure must include at least one director who is a citizen of an EEA region. One significant advantage is the ability to sign up for a corporation in the Republic of Ireland online.
If you are interested in this topic and require more information, contact our specialists for a consultation on the regulation of activities in Ireland. You can do so by completing the feedback form below or by contacting our specialists via the contact information provided on the site.
To register an Irish company, you must first prepare:
- the future enterprise's name;
- the firm's constitution in accordance with the Companies Act 2014;
- the certificate of registered local office;
- information about appointed directors;
- personal data about shareholders;
- information about the secretary;
- data on the company's authorized share capital.
Foreign entrepreneurs can incorporate in Ireland if they have at least one EEA resident director, a local secretary, and a registered address.