Irish business environment and tax advantages of a limited company
Ireland is a convenient place for conducting business (ranked high by the World Bank) with attractive 12.5% tax rate on trading profits. It has concluded more than 50 double taxation treaties including the US. There is neither withholding tax on the payment of dividends by the holding company to EU or tax treaty countries, nor capital gains tax on the disposal of shareholdings in subsidiaries. All this makes a limited company in Ireland a popular corporate vehicle for trading and holding purposes.
Typical business established in Ireland are research and development, IT operations, logistics management, IP and brand management, call centre, back office and administration, purchasing, sales, distribution and marketing, captive insurance and head office. We should also mention aircraft leasing, which will benefit from tax depreciation, extensive CTA network, 0% rated VAT regime with full VAT recovery on costs related to the aircraft leasing business, stamp duty exemption for aircraft and certain aircraft-related transactions.
Legal form and requirements
A private limited company is the most popular form of incorporation in Ireland. An Irish limited company has to have a registered office, at least two directors (one should be a European Economic Area ((EU + Iceland, Norway and Liechtenstein resident), a secretary (who may also be a director) and register at the Tax office.
Typical authorized share capital of the company is of €100,000 divided into 100,000 shares of 1 Euro each. The issued or paid up share capital is the number of shares that have actually been allotted and paid for by the shareholders. Typically 100 shares of 1 Euro each are issued. The 100 shares are divided between the shareholders to reflect the ownership of the company.
One person or a company can hold all company shares. This is called a "Single Member Company".
Irish limited company corporate law requirements
All companies must submit and file an annual return together with the accounts and hold an Annual General Meeting.
Every company with the turnover exceeding Euro 8.8 million must prepare and file audited accounts. Holding and Subsidiary Companies must also file audited accounts.
If the company is VAT registered, VAT returns must be made every two months.
If the company does not have an EEA-Resident Director, a €1957.50 bond (non-refundable and payable every two years) must be taken out. The bond insures the company for €25000 and covers the fines or penalties imposed if the company fails to file the annual return and audited accounts.
Limited company formation and related fees
- Incorporation of an Irish limited company - € 295. This includes all legal documents and company seal. Express service (2-3 working days) is also available at extra cost.
- Annual Company Secretarial/Registered Office service (including corporate company secretary) - €895.
- Corporation Tax Registration - €295 or €480 to include VAT registration.
- Setting up a Corporate Bank account with online banking - €600.
Summing up the said above, a limited company in Ireland is relatively inexpensive in setting up but provides free access to the EU and world markets in multiple areas. Favorable taxation, remote management without the necessity to reside in Ireland – these are the advantages to consider when making a decision about registering an Irish company.
Procedure of Irish limited company registration
We will need the personal details of the company beneficiaries, directors and a secretary and description of the company planned activities. At least one of the directors must be resident within the European Economic Area (EEA). If you do not have such a director, we will assist with paying a bond (please see above). Alternatively we can provide an Irish resident non-executive director.
Please email us to receive the order form. We will also send you the necessary documents to sign. As soon as we receive these back from you we will initiate the incorporation procedure.
- Useful links:
- Irish Companies Act 2014
- Directory of European Union legislation
Please ask for more details if you are interested in to establish an offshore company in the Isle of Man sending
a message to our fax numbers in:
UK: +44 870 421 1387
USA: +1 626 609 3984
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