LTD - 1200€ + VAT (all included).
Why start a business in Ireland?
This is mainly because the corporate tax rate is low at 12.5% (under the EU directive it will rise to 15% in 2023). This has encouraged many multinationals such as Facebook, Google, Amazon and Apple to set up their European headquarters in Dublin. In 2014, Forbes magazine named Ireland the best place to do business. The Economist Intelligence Unit ranked Ireland 11th out of 82 countries in its ranking of the world’s most attractive places to do business. Setting up a business in Ireland is a great opportunity, not least because it is easy and less bureaucratic to register. Ireland’s low tax environment is very supportive of foreign direct investment.
To set up a company in Ireland, it is important to know that the minimum share capital starts at €1.
In addition, it has double tax treaties with more than 60 countries around the world (including Estonia). Ireland is the only fully English-speaking member of the euro area, which facilitates trade in services and goods across the EU. A company incorporated in Ireland must have at least two directors and one secretary. One of the directors must be resident in the European Union (EU) or the European Economic Area (EEA). In addition, the company must have its registered office in the Republic of Ireland. Companies incorporated in Ireland are required to file an annual return together with abridged accounts. Our specialists can help you to meet all the necessary requirements and also provide further advice on the legal form of the company and the potential risks.
The main types of business in Ireland are:
– Private Company Limited (LTD) is the Estonian equivalent of OÜ
This legal form is still the most common in Ireland for private and commercial companies. A member’s liability is limited only to the amount, if any, not paid for the relevant shares. A trading company may be engaged in any type of business that the directors and shareholders consider appropriate.
– Company limited by guarantee without share capital (CLG)
Typically used where separate legal entity and corporate protection is required, for example for charities, professional associations, societies, sports clubs and social clubs. This type of company is suitable for non-profit or non-governmental organisations (NGOs). It can also be used for administrative purposes in the servicing and maintenance of housing estates. The legal name of a CLG ends with the words “Company Limited by Guarantee” or “CLG”. However, there are a few exceptions – a company can apply for a suffix to be removed if its objects are for the purpose of trade, art, science, education, religion, charity or any other specified purpose.
– Public Limited Company (PLC)
A Public Limited Company (PLC) is used when a company intends to apply for a stock exchange listing or when a major business development plan is being set up. Unlike limited companies, there is no limit on the number of shareholders. In order to form a public limited company in Ireland, it must have at least two directors and cannot waive the requirement for a general meeting. The minimum issued share capital of a company limited by shares must be €25 000. The name of a PLC company must end with the word “Public Limited Company” or “PLC”.
– Unlimited company (UC)
Unbound companies account for just over 2% of all Irish companies. Their main feature is that members have no limited liability. There are three types of unlimited companies in Ireland: the ULC is a limited company with unlimited share capital; the PULC is an unlimited company limited by shares without share capital; the PUC is a limited company with unlimited share capital. It is worth noting that these types of companies must have at least two directors. If a UC has two or more members, they cannot refuse to hold a general meeting. A UC has a two-document constitution, consisting of a memorandum and articles of association. The name of the UC must end with the word “Unlimited Company” or “UC”, although in some cases this suffix may be omitted.
– Irish Limited Partnership (LP)
A commercial partnership is a unique form of partnership that allows certain partners to exercise limited responsibility. You can have up to 20 partners, although there are some exceptions. For example, there must be at least one general partner with unlimited liability, and general and limited partners can be individuals or companies. Each limited partner must make a capital contribution to the partnership, which determines its liability. This contribution can start from 1€.
The fiscal year for income and capital taxes in this country starts on 1 January and runs until 31 December. In the case of income tax, the taxable period is usually after the reporting period.
The tax return must be submitted by the 21st day of the ninth month following the end of the accounting period.
Finally, opening a bank account for an Irish company may require a personal meeting with bank representatives.
Setting up a company in Ireland involves several types of taxes:
VAT in Ireland is 23%
Taxation of dividends in Ireland is 25%
LCPC aims to provide you and your business with high quality assistance. Setting up a company is one of the first steps in building your business and we will help you through it together!
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