Starting a Company in Ireland; All you Need to Know
By Tasc
Published On March 16, 2021
Starting something new is always a difficult path to take. You have to be optimistic and persistent in what you choose. Starting a new business is no different. If you are thinking of starting a new business in Ireland, then this article is exclusively for you.
In this article you will get to know all the key aspects and requirements for Company formation in Ireland that you need to be aware of before starting a new business in Ireland.
Ireland is becoming a potential choice for those companies who are looking to reposition their European hubs from the UK. So, before we go into the process, let’s see why Ireland is on the top of the “LOCATION WISHLIST” for starting a new business or to relocate an existing business.
- Ireland is an English-speaking common law country in the EU
- The Companies Act 2014 makes it easier for a director to manage a company in Ireland
- Ireland has a very transparent and robust judicial system
- The country has a 12.5% corporate tax rate
- Most of all, the quality and skilled workforce is extraordinary in the country
NOW you have the reasons to start your business in this exquisite piece of land. So, let’s go through the important aspects that you need to know before you proceed with your company formation process.
Name of the Company
The company name you choose must align with the following considerations:-
- The name of your company must be unique and clearly distinguishable from the remaining existing companies in Ireland.
- You have to request special permission from the authorities if you are about to choose words like Group, Bank, Insurance, etc.
- Words such as Solutions, Ireland, Services, Ireland, International, etc are allowed as they don’t have any effect in distinguishing the name from other companies
Type of the Company
You have to decide the type of your Company based on the work you are about to perform. You have to be well aware of the different legal structures in Ireland and choose what suits your business more.
The most common choices are either to be a sole trader, partnership or a company.
- To become a sole trader, register with the Revenue Commissioners for tax and PRSI.
- To become a limited company, first you have to register with the CRO. This process will take around 4-5 days to complete. Once your business is incorporated, you can register with Revenue for tax and you can also start a bank account in the name of the company.
The detailed lists of choices are as follows:-
The most common and frequently used company type in Ireland where the members’ liability, if the company is wound up, is limited to the amount, if any, unpaid on the shares they hold.
It has limited liability and must have at least two directors and a company secretary.
A public company type where the members’ liability is limited to the amount they have undertaken to contribute to the assets of the company, in the event it is wound up, not exceeding a specified amount and subject to a minimum of €1.00.
A PLC can have one member and no maximum limit on members. The liability of members is limited to the amount, if any, unpaid on shares held by them.
A foreign company may also establish an external company within the State. Any company that so establishes itself must register with the Irish Companies Registration Office (“CRO”) within 30 days of its establishment in the State.
Constitution – Principle Activities
Your company is supposed to select a ‘NACE’ code prior to incorporation. The Companies Act 2014 introduced a Constitution for Private Limited Companies (LTD) which replaced the Memorandum and Articles of Association.
This will allow you to trade in any legal business that you want to.
Registered Office of the Company
Your registered office must locate within the boundaries of the Republic of Ireland. You can definitely choose your separate trading address but still, most of your official correspondence will be posted to this address.
You can use your home address as the registered office of their company if you are an Irish-Resident Director(s).
Directors of the Company
The Company Directors are those people who take care and manage the company on behalf of its owners and shareholders. To proceed with your company formation process, the below are the information required.
• Full Name of all the Directors
• Nationality of all the Directors
• Usual residential address of all the Directors
• Date of birth of all the Directors
• Business occupation of all the Directors
• Names of other Companies that the individual is a director of.
Other points to note:-
• At least one of the proposed Directors of the company must be Resident within the European Economic Area (EEA)
• They may enter into a ‘Section 137 Non-Resident Director’s Bond’, if your company has no EEA-resident director
• All Directors must be minimum of 18 years of age and must agree on incorporation that they understand these obligations
Company Secretary
In order to ensure statutory obligations, Irish companies must have a Company Secretary. The Company Secretary must be responsible for maintaining the books of the company, and ensuring annual Returns are filed on time.
This position can be filled by either one of the company directors or with a separate individual or a corporate entity. Please note that if your company has only one director, you have to appoint a separate Company Secretary.
Authorized and Issued Share Capital
The amount of shares a company can call upon if required is termed as the Authorized (Nominal) Share Capital of the company. The number of shares that have actually been allotted and paid for by the shareholders are the Issued or paid-up share capital.
Shareholders of the Company
They are the real owners of a company. They must be a minimum of 18 years old. The number of shares issued must be divided in a way that reflects the proportionate ownership of the company.
The shareholders’ details required are:
• Full name of all the share holders
• Residential address of all the shareholders
• Amount of shares that are proposed to be held in the shareholder’s name
Directors of the Company
You have to be well aware of the tax structure that you are about to take care of. You have to analyze every financial pain points even before you start your company so that it won’t hurt when the situation arises.
Why choose TASC Accountants to form your company in Ireland?
When you start registering your business on your own, you may feel confused during the process. TASC Accountants has been in this industry for the past 10+ years and when you set up your company with us, we will allot you a dedicated team of experts through the incorporation process. This team will focus on giving a real stress-free assistance throughout the process and help you to overcome all the hassles and complete your incorporation process successfully within a minimum time frame.
Contact our experts and experience the best company formation services in Ireland.
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