The Irish Revenue Commissioners have recently announced that the 3 Year Tax Exemption for Start-up Companies has been extended to companies registered in Ireland in 2012!

The scheme which provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading is being extended to include start-up companies which commence a new trade in 2012, 2013 or 2014.

The scheme was last year modified so that the value of the relief is linked to the amount of employers’ PRSI paid by a company in an accounting period subject to a maximum of €5,000 per employee. If the amount of qualifying employers’ PRSI is lower than the reduction in corporation tax liability otherwise applicable, relief will be based on the lower amount.

3 Year Exemption – Eligible Companies

This is a new relief which you can claim if:

• You are a new company (incorporated in Ireland or another EEA State) since 14th October 2008
• Which commences a qualifying trade in 2009-2014
• Whose corporation tax liabilities do not exceed certain levels

You must commence a qualifying trade.  A qualifying trade does not include:

a) A trade previously carried on by another person.  The trade must be a new business and not the transfer of an existing business or part of a business from a sole trader or previous company
b) An excepted trade (subject to 25% tax).  Profits from non trading activities such as rental and investment income are taxed at 25% and do not qualify for the relief
c) A trade carried on entirely outside Ireland and whose profits are subsequently taxed at 25%.  An Irish incorporated company must be managed and controlled in Ireland and have “substance” in Ireland in order to qualify for the 12.5% corporation tax rate and in turn the exemption as outlined in this article
d) A trade dealing in or developing land or exploration and extraction of natural resources
e) A trade of a “service company” that would be subject to a professional companies profits surcharge as per S441 TCA.  Effectively, the “service companies” that do not qualify for this tax relief include close companies (5 or fewer shareholders/ directors) whose businesses consist of the carrying on of a profession or the provision of professional services, or of exercising an office or employment.  These “service companies” also include businesses that provide services to professionals
f) A trade in the fishery or aquaculture sectors
g) A trade active in the primary production of agricultural products
h) A trade active in the coal sector

Revenue Considerations

This relief qualifies under EU de minimis aid regulations and Revenue may disclose information on the tax relief claimed under Section 486 to government department and agencies paying other de minimis aid and, if requested,  to the EU commission.

Claims for start up company relief are made as part of the normal self assessment basis of tax are made under panel 9 of the annual corporation tax return form.

In conclusion, this entitles many new company formations Ireland to avail of a 0% Corporation tax in Ireland for the first 3 years of business. For more information on this and how to register a company in ireland, pelase don’t hesitate to contact the experts at Company Bureau.

We offer very attractive discounts and incentives to Professional Advisors* on many of our services.

For more information please contact us today. Please remember to give us your full contact details including phone number, practice name and professional e-mail address.

*Repeat customers only. Must be a registered and licenced professional practice adhering to EU standards of anti-money laundering procedures or equivilant.

Canada is an excellent jurisdiction for foreign investment and for doing business due to the strong and well regulated banking system, relatively low corporate tax rates, well-educated work force and minimum red tape. The combined federal and provincial corporate tax rate will reach 25% by 2014, which makes Canada one of the lowest corporate tax jurisdictions among Western countries. Canada was ranked the best country in the world to do business in by Forbes in 2011.

Company Bureau can assist you to register a company in the provinces of British Columbia, Ontario, New Brunswick and also to register a federal Canadian company.

The requirements to register a company in Canada will depend on which province you select, so please contact us today for further information. In most cases we can also assist with the provision of a company bank account, as well as registered office and secretarial services.

Company Bureau would like to remind you that Tuesday 13th December 2011 is the last day for new company applications to be lodged with the Companies Registration Office (CRO) should you require a limited company to be incorporated before Christmas or the 31st December 2011.

Should you require a company to be incorporated before then, and also to avail of the 0% rate of corporation tax for the first 3 years of business, you will need to place an order with us at least 2 days before this date (Companies must be incorporated before 31st December 2011)

Also if you require a company to be incorporated before Budget Day, ideally we should receive the order/signed documents by Wednesday, 30th November to ensure that we have the company registered in time.

Please contact us on +353 1 6461625 for further information, or proceed to ‘order a company on-line’ by using the link above left.

Seasons Greetings from Company Bureau!

The Multi-Unit Developments (MUD) Act 2011 was fully commenced into law on 1st April 2011. This piece of legislation contains 34 sections of new law for apartment management companies to comply with as well as providing a comprehensive legislative framework for multi-unit developments.

As well as providing a legal framework for multi-unit developments, the ‘MUD’ Act will enable apartment owners to take control of common areas and the management of the complex for the benefit of all residents.

The main features of the act are as follows:

As stated above, the act requires that common areas are transferred into the OMC by 30th September 2011. The existing management company can be utilised for this purpose, once the Memorandum & Articles of Association are changed and the company name is changed to include the term ‘owners management company’

Company Bureau can assist you with this requirement by changing the name of the company to include the term  ‘owners management company’ in the name, and also replace the Memorandum & Articles of Association with our ‘OMC’ version which has been drafted by a commercial law firm and is approved by the CRO.

For more information, please don’t hesitate to contact Paula Horan or Andrew Lambe on (01) 6461625 or e-mail cosec@companybureau.ie

As Company Formation experts, a question we are commonly asked is ‘how do I incorporate an Irish company’ or ‘How do I register my business?’

Before this question can be answered you need to decide what type of business you want to set up. This is the million dollar question that many of our clients have. There is no ‘catch all’ answer – It really depends on your precise requirements. If you are not sure, it is a good idea to seek the advice of an independant tax advisor or Accountant.

The benefits of a limited liability company are outlined here in our blog article that we published last year, courtesy of Mr. Gerald Owens FCA, AITI, of FDC. However a limited company is not for everyone e.g. for a dog grooming business with a turnover of EUR10,000 per year, registration of the business as a sole trader would be more suitable.

The process for business name registration is outlined by clicking here The process is straightforward, and once your certificate of business name registration is issued you can open a bank account in your company name and register for taxes / as self employed.

For the required steps on registering a limited company, please click here for more details. Once you have completed the application form, Company Bureau can have your company registered in only 3-4 working days.

May we take the opportunity to congratulate you on starting your own business, and we wish you every success with your new company!

The long awaited consolidated Companies Act moved a step closer last week with the publication of the first part of the Companies Consolidation and Reform Bill, otherwise known as “Pillar A” by the Minister for Jobs, Enterprise and Innovation, Richard Bruton.

When the consolidated Companies Bill is signed into law (expected to be late 2012 or early 2013) it will dramatically alter the landscape of company law in Ireland.

The draft legislation, which contains 952 sections and six schedules on over 1300 pages of text, is expected to provide the largest piece of legislation in the history of the State when it is complete. The draft consolidates the 15 existing Company Acts from 1963 as well as a significant number of statutory instruments and judgments. It has been in the pipeline since February 2000, when the Company Law Review Group (CLRG) was set up by Government to reform and modernise the landscape of Irish company law and bring it into the 21st century.

As well as consolidating existing law in the area, Pillar A of the Bill will make important changes which will make it easier and more cost-effective to register and operate a company. The legislation published today contains all provisions relevant to the private company limited by shares, which under the Bill will be known as “CLS” instead of “ltd”, and which accounts for over 90% of companies presently registered in Ireland.

This proposed new company type will now be put at the centre of Irish company law, and important reforms will be made to the way this company type operates:

• A CLS will be allowed to have only one director;
• A CLS will only be required to have one document in its company constitution, and the Act provides for a default document to apply in all cases except where the company changes this constitution;
• A CLS will have the same legal capacity as a natural person, reducing the necessity to prepare long company constitutions, and reducing legal disputes caused by the ultra vires doctrine;
• A CLS will no longer be required to have a “physical” Annual General Meeting (AGM) every year – it will be possible to do this by correspondence; and
• Other changes will include an exhaustive listing of the duties of directors (previously contained in case law) and of all criminal offences under company law.

The section of the bill known as ”Pillar B” which will cover PLC’s, Companies Limited by Guarantee, re-registrations, foreign companies, investment companies, etc. is still being finalised and is expected to be published in late 2012.

Dr Tom Courtney, chairman of the CLRG, said: “The publication of the provisions of Pillar A of the Companies Bill represents a landmark moment in the development of Irish company law. The document which is published today is the product of years of very careful and painstaking work in remodelling Irish company legislation around the entity which uses it most – the private company limited by shares – and in making that legislation more accessible to those who need to be familiar with its provisions, whether in the business community or professional advisers. The publication of “Pillar A” will allow all of these stakeholders the opportunity to become familiar with the provisions of the proposed new law and to interrogate these provisions from a technical perspective in advance of the Bill being enacted”.

A copy of the Bill can be found on the Department of Jobs, Enterprise and Innovation’s website by clicking on the following link:
http://www.deti.ie/companiesbill

Company Bureau offers an annual company secretarial and compliance service to help you ensure your company is fully compliant with current and future company law legislation. For more information and our brochure, please don’t hesitate to Contact Us

For the latest updates and developments on the Companies Consolidation and Reform Bill, why not sign up to our monthly newsletter (Please see homepage for details)

Collection of the Non Principal Private Residence Charge (NPPR) for 2011 commenced on the 31st March 2011 and is due shortly for companies and individuals.

The 2011 charge is based upon the ownership and status of the property on the 31st March 2011. Please note that you must pay the NPPR charge for 2011 on or before the 30th June 2011 to avoid late payment fees.

This levy on second homes or non-principal private residences in the state A late payment fee of €20 will be applied per month if the payment is made after 30 June 2011.

• The levy is €200 per property
• The levy applies to each additional property owned by the individual or company
• The levy applies to residential property only

The tax is self assessment and may be registered and paid on online using the following link

https://www.nppr.ie/

If you have any queries or require assistance in this matter please don’t hesitate to contact Angus Donohoe, BMOL Partners. PH: +353(1)662 2700
www.bmol.ie