Setting up a company in Ireland

Ireland is called the Emerald Isle because of its green landscapes. It's also the place to celebrate St Patrick's Day, adore the color green and make up the most extraordinary legends.

Ireland is one of the attractive countries for IT and startup companies, travel agencies, consulting companies, translation bureaus. More than 1,150 international companies, including Google, Facebook, Twitter, Airbnb, LinkedIn, Dell and Intel, have chosen Ireland to locate their European headquarters. Ireland's legal system is based on the English common law system. In order to set up a company in Ireland, the applicant can choose a suitable business structure.

Ireland is a small European jurisdiction that attracts foreign investors as a place to register a European company. LTD is the most common form of Irish company registration for people who want to start a business in this jurisdiction. Ireland or another type of company. It should be borne in mind that resident companies are required to include in the structure at least one director who is a resident of the EEA. An important advantage is that you can register a company in Ireland remotely.

Below you can find out important aspects of the above-mentioned legal entities.

TYPES OF COMPANIES

There are various types of companies in Ireland. Most are private companies with limited liability. Based on the type of business, there are several options for setting up a limited or unlimited company in Ireland, and the most common is LTD. Irish companies. We have compiled this helpful guide to provide you with a clear understanding of Ireland’s most common types of companies.

Below is more detailed information about the different types of legal entities which we can assist you to set up:

• Private Limited Company (LTD);
• Designated Activity Company (DAC);
• Company Limited by Guarantee (CLG);
• Owners Management Company (OMC);
• Public Limited Company (PLC);
• Unlimited Company (ULC).

We have compiled this helpful guide to provide you with a clear understanding of Ireland’s most common types of companies.

PRIVATE LIMITED COMPANY (LTD)

Limited Liability Companies remain the most widely incorporated entity for private, commercial enterprises and companies in Ireland. Limited Liability Companies have a Memorandum and Articles of Association. A member's liability is limited to the amount, if any, unpaid on the shares respectively held by the shareholder. This type of company has no purpose clause in its Articles of Association (unlike a Designated Activity Company (DAC) and may therefore engage in any type of business.

KEY REQUIREMENTS FOR LTD REGISTRATIONS:

• One director required. Director cannot be listed as company secretary – separate person is required.  If there are two or more company directors, one of them may act as the company secretary;
• At least one shareholder of any residency;
• Authorized and Issued Share Capital is required (minimum capital - 1 EUR);
• Registered address is required;
• Accounting, financial statements, tax returns are mandatory.

LIMITED PARTNERSHIP (LP)

Unlike an LTD company, a Limited Partnership is not a legal entity. The Limited Partnership Act is one of the oldest pieces of legislation in Ireland. The relevant regulations state that two or more individuals or legal entities may incorporate a limited partnership in Ireland. An LP must consist of one general partner and one or more limited partners and not exceed 20 individuals. The general partner has unlimited liability for the activities of the LP, and the liability of other partners is limited to the amount of their contributions to the organization. The general partner has management rights over the company, while other partners do not have such rights.

Please note: the general partner must be a citizen of the jurisdiction, while the limited partner can be a foreign resident.

KEY REQUIREMENTS FOR LP REGISTRATIONS:

• At least one director (resident in EEA);
• At least two partners. One general partner and limited partners are required for LP registration. The number of members must not exceed 20 people. No residency requirement for partners;
• No requirement for the contributions to be paid up;
• Registered address is required.

TAXES FOR LTD AND LP

The difference between a Limited Partnership and a Limited Liability Company is the way they are taxed. The LTD company pays tax on its profits, and the directors are taxed on the remuneration they receive from the company. A partnership, on the other hand, is not taxed on its own as a company (the partnership is not a separate legal entity). Instead, each partner is taxed on his or her share of the profits, regardless of how much or less they have taken from the partnership's business.

One of the most precious aspects of LP is their tax transparency, which means that the partnership is not taxed - each partner remains liable for his or her own tax in the jurisdiction in which he is a tax resident.

REPORTS AND AUDITS

Companies registered in Ireland must file annual audited financial statements at the Registry of Companies: maintaining accounting records, keeping records at the registered office, filing annual financial statements with government agencies and passing audits.

COMPANY’S BANK ACCOUNT

To open a business account in an Irish bank, one of the directors usually needs to hold at least one personal meeting with a bank representative. Alternatively, you can open an account in the payment system for a company from Ireland. Our team has extensive experience in opening accounts in both traditional banks and payment systems. Banks in many cases require a local director to successfully open a bank account. We have a wide range of opened accounts in Ireland, and we will be happy to help you with this issue.

WHAT IS A COMPANY REGISTRATION FEE IN IRELAND?

Company registration in Ireland takes from 1 week. You can find out the price of registration and other nuances of starting a business in this jurisdiction by signing a form in our web site.

WHAT ISSUES MAY ARISE DURING THE REGISTRATION PROCESS?

Registering a company in Ireland can be very attractive, but it can also be an extremely difficult task, where mistakes can be costly.

There are many legal subtleties that will have to be considered. Problems may arise at the very first stage - choosing a name. The name of your Irish company must be unique and different from any other company registered in Ireland. Complications sometimes arise at the stage of paperwork as well. To assemble the application package, fill out the owner's form and translate the documents into English, you need to consider many nuances known only to qualified professionals.

We have extensive experience in the procedure of setting up a company, opening bank accounts in any country and in the other ambitious questions in Ireland. Our qualified experts will provide professional assistance in setting up a company and explain the advantages and disadvantages of different types of activities in Ireland. Similarly, we can help with the purchase and sale of existing companies in this jurisdiction.

In order to find out more information, you can use the opportunity to order a consultation on the regulation of activities in Ireland from our specialists. You can contact us using the feedback form or the contacts listed on the website.