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Company Incorporation in Ireland - Insurance, VAT & Taxes
Ireland may be a small country but the so-called Celtic Tiger economy is fuelled by foreign investment, low corporate tax and a liberal approach to trade. Generous investment incentives complete an attractive package. No wonder thousands of foreign investors have opened an Irish company. Ireland is perfectly positioned as a trade bridge between Europe and the United States. In addition, it is a global e-commerce hub, boasting a truly world-class telecommunications network. Above all, it has a particularly beneficial tax environment on all trading income, whether manufacturing or otherwise. If you need advice on tax planning in Ireland we can put you in touch with our team of local specialists.
On June 1st 2015 a new Companies Act came into force. Previously, it was possible to open a company called a PrC – a Private Limited by Shares company. But these will now be converted to a LTD – a Private Limited Company, or a DAC – a Designated Activity Company.
- The company shall have at least one director who is a resident of the European Economic Area (EEA)
- If the directors are resident in a non-EEA country, they will have to pay a non-refundable bond of €1957.50. This lasts for 2 years and then it needs to be renewed. However tax residents of the EU (regardless of the passport they hold) will NOT have to pay this bond.
- Shares remain the same as if the company were being set up with Irish directors – a minimum of one share at a cost of €1 is required (this is for a single member company) and then two or more shares for a multiple member company.
- You will not need to have a nominee director as the bond works as a type of insurance to the government.
What are the main features of a Private Limited Company (LTD)?
- most popular format for foreign investors
- no minimum threshold of share capital
- From June 2015, a private limited company (LTD) can be run by a sole director as long as they are a resident of a European Economic Area country. A separate company secretary should also be appointed.
- audited accounts to be filed annually
What are the main features of a Public Limited Company?
- the minimum share capital is €38,092
- at least 25% of the authorized share capital must be paid up
- minimum of seven shareholders required
- audited accounts to be filed annually
What are the main features of a partnership?
- available as a general, limited or investment limited partnership
- general partnerships have unlimited liability
- limited partnerships have limited liability
- investment limited partnerships allow for tax relief
How do investment limited partnerships work?
These partnerships are useful for collective investment companies, having tax transparency which enables investors to secure tax relief. Requirements include:
- one general partner must be an Irish incorporated company
- at least two directors must be Irish
- minimum share capital €100,000
What are the main features of a branch?
- foreign parent responsible for all liabilities of Irish branch
- branch required to register with Registrar of Companies
- minimum of two directors; accounts to be filed annually
How easy is it to recruit staff in Ireland?
Ireland has a well-educated and motivated workforce. There is a thriving recruitment sector and we will be happy to help if you require advice on this.
What is the regulatory environment like?
Ireland’s government has streamlined its regulatory infrastructure. Financial controls are now the responsibility of a single body, the Irish Financial Services Regulatory Authority. The overall regime is relaxed. There are no general restrictions to foreign ownership, capital and dividends can be freely repatriated plus Ireland has bilateral tax treaties with many countries.
Are there financial incentives available?
The Irish authorities, in coordination with the EU, offer a broad range of incentives for international investors, including the following:
- capital grants towards the cost of land, buildings, plant and equipment
- employment and training grants to promote job creation
- research and development grants
And what about banking facilities?
Ireland is emerging as a major international banking centre in its own right. The main national clearing banks offer a full range of services, including foreign exchange and hedging, while many international banks are represented here for commercial lending and foreign exchange facilities. Opening a bank account is the first step you will need to take if you establish a company in Ireland.
For bank accounts and any other issues you may have regarding company incorporation in Ireland including insurance, VAT & taxes, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’d be delighted to help you.