As a member of the European Union since 1973, Ireland has been able to diversify its trading partners, the UK remaining still the main economic and commercial partner of the country, but with entrepreneurs and businesses from all over the world interested in Ireland’s company formation advantages. The Irish economy has grown at an impressive pace since 1995 and has remained one of the largest economies in Western Europe.
The success of government policies in the field of foreign investment is evidenced by the fact that approximately 1,240 foreign companies chose to establish their businesses in Ireland and the attraction for this country doesn’t seem to slow down. Especially foreign entrepreneurs, companies and interested legal entities should be aware from the start about the necessary steps for company formation in Ireland.
- Choose the type of business structure
The different types of companies available for company formation in Ireland are outlined by the Companies Registration Office. One of the most common business structures is the private company limited by shares (LTD), because it can have just one director and can be eligible for audit exemptions under certain circumstance. Other business structures used for company formation are Designated Activity Company (DAC), Company Limited by Guarantee (CLG), Public Limited Company (PLC), and Unlimited Company.
- Establish the company’s central management in Ireland
It’s important to prove that the newly-formed company has its central management in Ireland, especially to benefit from a reduced corporate tax. The company must have a registered office in Ireland, most of the company’s directors live in Ireland and the financial records and records are kept in Ireland.
- Fulfill requirements for foreign company founders
In the case of foreign founders interested in company formation in Ireland, it’s required to have at least one director who is a resident of an EEA member state, to conclude a non-resident bond , or to a acquire a statement from the Revenue Commissioners.
- Appoint at least one director
The company must have at least one director who is a resident of an EEA member state. The director is responsible with the company’s management on behalf of the shareholders, but shareholders can assume the roles of directors as well.
- Have a company secretary
A separate company secretary is needed especially for companies that have only one director. If there are more directors, one of them can assume the role of the company secretary, as the Companies Registration Office states that a corporate body can act as a secretary to a company.
- Have a registered office
The registered office represents the official address of the company and is need for company formation in Ireland. The company’s office must be registered to a physical address located in Ireland.
- Open a bank account
For companies that require a deposited share capital, it’s necessary to open a bank account with an Irish bank. The deposited sum is blocked until the incorporation process is concluded.
- Draft the documents
A Constitution of the company must be drafted, under the Companies Act from 2014. This is a formal document that sets out the company’s structure and establishes the relationship between the company, the shareholders and the directors, as well as the company’s office. In addition, it is required to obtain a NACE code, used to describe the activity of the company in the Registrar of Companies.
- Register the company
After the necessary documents are drafted, they are sent to the Companies Registration Office (CRO). When the registration is approved, the company receives a CRO number used for tax purposes.
- Register the company for tax purposes
Using the CRO number, the company must be registered for tax purposes. The corporate tax must be paid by any Irish company or any company that is incorporated in Ireland. If applicable, the company must be registered for VAT as well.
For more details and for support and legal advice regarding opening a company, it’s recommended to acquire the help of a firm specialized in company formation in Ireland.
