Setting up a new company in Ireland has many advantages. For example, Ireland was named, by Economist Intelligence Unit, one of the most attractive business locations in the world. The minimal share capital requirements, the ease of incorporation, the favourable taxation are other benefits in forming a company in Ireland. Check out the video published by Enterprise Ireland to find out more about this advantages:
Video courtesy of Enterprise Ireland.
In Ireland, you can set up a business as a sole trader, as a partnership or as a limited company.
As a sole trader, you are legally obliged to register yourself as a self - employed person with Revenue. In this case, your business will not be perceived as a separate legal entity. Hence, your personal assets could be used to pay your creditors if your business fails. Being a sole trader offers the possibility to use a business name. To do so, you must register your business name with the Companies Registration Office(CRO).
A partnership is established where 2 or more people agree to run a business in partnership with each other. The partners are jointly responsible for running the business. It is advisable that the partnership agreement is drawn up by a solicitor. In case the business fails, all partners are jointly responsible for the debt.
To set up a business as a limited company, you must register it with the Companies Registration Office(CRO). Also, the company reports and accounts must be returned to CRO each year. In the case of a limited company, the business will be a separate legal entity. This means that, if the company gets into debt, the creditors will only have access to the company's assets.
Choosing one of these types will depend on the kind of business you will run, with whom you will be doing business and your attitude to risk. You can find out more information about this business types on the Companies Registration Office(CRO). It is advisable to contact a solicitor or an accountant to get advice when considering the type of your business.
What to do next
1.Choose your company name:The name you choose must be one that is not already used by another company. Also, it has to be unique and distinguishable from other existing companies. You can search to see if your chosen company name is already in use on the Companies Registration Office(CRO) website.
2.Choose the registered office address:All Irish companies are required to have a registered office address in Ireland. All official documents related to your business will be send to this address. PO Box addresses are not permitted, therefore, it must be a physical address located in Ireland. ACCORDin can provide a registered office address for your business if this is needed.
3.If you opted for a limited company, you will need to choose the company directors and the company secretary:The current legislation states that there must be a minimum of two company directors. Another legal requirement is that at least one of the directors is an EU resident.
From the secretarial point of view, every limited company is required to have a secretary. It is acceptable for one of the directors to also act as the company secretary.
4.Company Formation:After deciding on your basic company details, you are ready to form the company. For that, you will need to draft and sign a Form A1 and the company's Memorandum and Articles of Association.
5.Tax Registration:After the company formation, you will need to register the company with the Revenue Commissioners.
6.Bank Account:It is very important to open and operate an Irish bank account. It will help receive VAT refunds and make tax payments using Revenue's online system (ROS).