An Isle of Man company formation has the following main features:

1. Two type of incorporation are possible – An ‘old style’ company registration under the 1931 act or a limited company under the 2006 act which is the most popular.

2. 0% corporation tax for almost all types of trade (exclude banking or insurance which are taxable at 10%)

3. No minimum share capital requirements and relatively straightforward incorporation procedure

4. Good selection of banks available including HSBC, Barclays and RBS. Remote bank account opening is possible in most cases.

5. An Isle of Man registered office and registered agent is required. The registered agent must hold an appropriate license issued by the Isle of Man Financial Supervision Commission. Company Bureau can provide this facility through our associates based in Douglas.

For more information on registering a company in the Isle of Man, please don’t hesitate to contact Company Bureau today for a free factsheet and consultation.

Having personally attended the Government’s ‘Action Plan for Jobs 2012′ in the Clontarf Castle Hotel this week, I am delighted to bring you a list of main incentives and initiatives that have been introduced or are currently available to encourage enterpreneurs to register a company in Ireland. I have summarised the inititives as follows:

1. SEED CAPITAL SCHEME:
If you start up and work in your own business you can claim back the income tax you paid in the previous six years to invest equity into a company engaged in a qualifying trade. The scheme is now open to a wide range of sectors and the ceiling on recoverable tax can now be up to €100,000 in each of the six years. More details can be obtained from the Irish Revenue Commissioners.

2. THREE YEAR CORPORATE TAX EXEMPTION:
First three years of trading income and certain gains of new start-up companies are relieved from Corporation tax. This includes full relief on income and gains where total Incorporation tax in any of the first 3 years does not exceed €40,000.
Marginal relief on where liability falls between €40k and €60k. Company must have at least 1 employee to be eligible. More details can be obtained from the Irish Revenue Commissioners.

3. R&D TAX CREDIT UP TO €100,000:
First €100,000 of R&D expenditure will benefit from 25% R&D tax credit from 2012. This is particularly beneficial to SME’S.

4. PRSI EXEMPTION SCHEME
This new initiative exempts employers who create new and additional jobs from paying the employers portion of the PRSI contribution for 12 months. Employees must have been on the live register for 6 months.

5. TAKING ON A PERSON ONE YEAR OUT OF WORK (DOUBLE TAX RELIEF)
Employer gets double write-offs on the wages plus employers PRSI for 3 years. It is worth €2,500 P/A to a company and up to €8,000 P/A for a sole trader.
Worker gets extra tax allowance of €3,810 plus €1,270 for each child in year 1 and 2/3 of these allowances in year 2, 1/3 in year 3. For a worker on the 20% rate it is worth €762 in the 1st year or €1,524 over the 3 years. Please contact Revenue for more information.

6. BACK TO WORK (ENTERPRISE) ALLOWANCE
If you have been signed on for over 12 months and would like to become self-employed, this allowance allows you to keep your social welfare payment for 2 years (year 1: 100% and year 2:75%)
To qualify you must be: setting up a business that has been approved in writing by a facilitator.

7. POTENTIAL EXPORTERS DIVISION (Enterprise Ireland)
In conjunction with EI the new Potential Exporter Division will provide assistance designed to aid client companies investigate, prepare and execute an International strategy including:
• Market Intelligence, practical business advice
• Targeted funding supports where applicable
• Suitable training and development
• Phone (01) 727 2829 or visit www.enterprise-ireland.com/getexportready

8. MICRO FINANCE FUND 
A new Goverment backed fund which will support new start-ups employing not more than 10 people to get access to loans of up to €25k. These loans will be given to commercially viable proposals which do not meet the conventional risk criteria applied by commercial banks.
Applicants must demonstrate that they have been refused credit by a commercial lending institution before their application can be considered.

9. PARTIAL LOAN GUARANTEE SCHEME
This Government scheme will partially guarantee loans to viable businesses that have been refused by other institutions. Businesses must show an ability to re-pay the loan and the assessment will be carried out entirely by the bank. Strict terms will protect the tax-payer.

10. HIGH POTENTIAL START-UP (Enterprise Ireland)
To qualify a company should be headquartered in Ireland, less than 6 years old and capable of creating 10 jobs in Ireland and realising €1 million in sales within 3-4 years. Please contact EI for further information.

11. COMPETETIVE START FUND (Enterprise Ireland)
This fund awards €50,000 to innovative start-ups which have the ability to succeed in global markets. You are eligible if you are currently part of EI’s HPSU programme.
For more info email: csf@enterprise-ireland.com or phone 01 727 2202.

12. INNOVATION VOUCHERS
If you own or manage a small business with a company registration number and you have a viable opportunity that you would like to explore, you can apply for an innovation voucher worth €5,000. Enterprise Ireland are manging this scheme so please contact them for more information.

13. CREDIT REFUSALS
If you are a small business owner, sole trader or farm owner who has had issues getting credit of up to the new €500,000 you can contact the credit Review Office for an Independent review. The banks have to comply with the recommendation or give their reasons for not doing so to the Credit Review Office. According to Minister Richard Bruton, the Office has overturned the banks decision in 50% of cases last year.
Call them on 1850 211 789 or visit www.creditreview.ie where they can give you advice on how to approach your bank. A new code of conduct has also come into effect in 2012 in relation to lender procedures when dealing with SME’s in financial trouble such as:
• Details of fees or changes that may apply as a result of financial difficulty
• Type of information the Lender may require from SME’s
• Information on firms rights to appeal a decision on a lending arrangement.

14. NEW FRONTIERS PROGRAMME
This new entrepreneur development programme will be delivered at a local level by the IT’s.
If you have an innovative idea or plan to run your own business, this new frontiers programme can provide a package of support to help accelerate this idea or business.
EI is allocating €4.25 million in funding to enable this collaboration with the Institutes of Technology.

For more information on any of the above incentives, or for more information on registering your company in Ireland, please don’t hesitate to contact us.

Germany has an excellent strategic location within the EU, being at the centre of Europe, and a direct neighbour to Poland, the Czech Republic, Austria, Switzerland, France and Luxembourg. it is Europe’s largest economy with a GDP of approximately $3 trillion and a population of 81 million (2012 est.)

Company Bureau can assist you in setting up a company in Germany, taking advantage of a country which ranks 5th in the 2012 FDI Confidence Index (the only European country in the top 5) and one of only two countries to maintain its ranking from 2011.

There are 3 main forms of German Company Registration for non-German residents:

• Limited liability corporation (GmbH)
• Stock corporation (AG)
• UG Company (Small type of limited company – GmbH UG)

Our unique service, carried out in conjunction with our sister company Euro Company Formations.com (www.eurocompanyformations.com) enables you to register a company in Germany with minimal hassle and without the need to travel there. Our service includes all notary fees, legal fees and the provision of bank account in order to deposit the €12,500 share capital required for a GmbH.

We can also assist with the incorporation of a UG company, which only requires a paid up share capital of just 1 euro.

For a jurisdiction that the world is confident in and that is stable and accessible, set up a company in Germany today. Please contact us for further details.

The United States is ranked as the 4th most attractive country in the world to invest, according to the 2012 FDI Confidence Index. Company Bureau is here to assist you in setting up a company in the USA.

The exact requirements to set up a business in the USA vary from state to state. Delaware is by far the most popular state for company formation because of its business-friendly environment. 50% of the companies listed on the New York Stock Exchange are incorporated here. Due to its significant experience, Delaware offers a stable legal platform on which to form your company. As long as you do not conduct your business in Delaware there is no corporate income tax for corporations. In addition there is no sales tax if you are not operating within the state. We can help you with the company formation process. California, Florida, Nevada and New York would be the next popular states after Delaware for company formation.

There is 2 main types of companies used in the US - A Limited Liability Company (LLC) or a Corporation. A corporation is a separate legal entity that has its own rights and responsibilities. In forming a corporation, potential shareholders offer money and/or property in exchange for stock.
 
An LLC is in most part the same – It is allowed to possess the limited liability characteristics of a corporation, but is treated as a partnership for federal tax purposes.

Company Bureau can also assist you to open a bank account in the USA with reputable banks such as Wells Fargo. HSBC and The Bank Of America. We can also put you in touch with visa and immigration experts should you require this service also.

Please contact us today for further information on registering your company in Delaware or the United States!

Gibraltar is small self-governing British Overseas Territory located at the southern tip of Spain and enjoys steady financial and political stability. The official language is English, however Spanish, Portuguese, Italian and Russian are also spoken. Gibraltar is governed by the English Common Law legal system, is part of the European Union and boasts a low corporate tax rate of 10%. Together with a business friendly time zone of GMT +1, Gibraltar forms a tax efficient financial gateway into the European Union.

Company Bureau can assist you in setting up a company in Gibraltar. The follwoing are the main features of a Gibraltar company incorporation:

• There is no minimum Authorised Share Capital, although GBP£2,000 is the standard.
• There is no limit or maximum capitalisation. The capital duty is 0.5% of Authorised capital.
• Non-resident companies can be incorporated with just one director.
• A director may be a person or a corporate entity.
• The minimum number of shareholders is one.
• A resident secretary is required and we can provide this.
• There is a Public Register of Shareholders but Nominee Shareholders are usually used.

For more information and a free consultation with one of our experts on registering a company in Gibraltar, please don’t hesitate to contact us. As well as registering the company we can also assist you with setting up a bank account for your Gibraltar company.

Ireland has been judged as the easiest country in Europe in which to pay business taxes for 5th year running according to a report published annually by PwC, the World Bank and the IFC.

The ‘paying taxes 2012′ report looks beyond the paying of corporation tax to include property taxes, VAT, vehicle taxes, social security taxes, capital gains taxes, etc. to give an accurate picture for firms to consider when deciding upon expansion or what new markets are worth pursuing.

The report also highlights the competitive nature of Ireland corporate tax rate of 12.5%, which was much lower than the EU average of 21.8%.

This report highlights one of the complex factors than firms need to consider when deciding where to locate their corporate domicile. It also highlights why Ireland is top of the class in Europe for attracting inward investment and why discerning entrepreneurs are selecting Ireland to expand their businesses.

For more information on how you can incorporate a company in Ireland, and avail of a corporate tax rate of only 12.5%, please contact the formation experts at Company Bureau on +353 1 6461625 or e-mail formations@companybureau.ie

This is the million-dollar question! It depends numerous factors such as your type of business, whether you’re still going to be in other employment, likelihood of success, projected turnover, whether you have investors now or in future, whether you want to put profits into a pension, etc.

The best advise we can give is to talk to an Accountant or Tax Advisor. Preferably a good one! A good Accountant will evaluate your business and give you the pro’s and cons for your type of business. If you want us to put you in touch with a good Accountant in your area please don’t hesitate to contact us. We have a network of contacts around the country whom we work with.

The main difference is that a Limited Company is a separate legal entity from the individuals involved (Directors and Shareholders) A Limited Company needs to make Annual Returns with the Companies Office and there is more compliance and red tape, however they are generally thought to be most tax efficient. For example, Company Directors can put profits into their pensions virtually tax-free (within reason of course!)

If you register as a Sole Trader or a Partnership you will need to register a Business Name if you are carrying out business under a name other than your own e.g. ‘John Smith Carpentry’ as opposed to just ‘John Smith’ You and your business are legally and financially the same person, so you don’t have ‘limited liability’ like you do with a Limited Company.

Advantages of limited company:

- Limited liability. This means that the liability of the shareholders is limited to the amount paid for shares. This can only changed if Directors haved traded fraudulently or negligently, or if they continue to trade when the company has been struck-off.
- Low corporation tax. The rate of corporate tax in Ireland is only 12.5%
- The business is a separate legal entity from the people involved (Directors & shareholders)
- The company name is protected. Nobody else can use the name as a limited company name.
- Excellent tax breaks for Directors on company pensions.
- Business can appear more credible when bidding for tenders, signing contracts, etc.
- Clear and defined ownership and duties.

Disdvantages of limited company:

- Compliance. there is more compliance neccessary with a limited company. Annual Returns have to filed with the CRO, etc.
- There is higher costs to open and close the business.
 

Advantages of Sole Trader/Partnership:

- Simple and cheap to register and maintain
- Minimal cost to close business if required
- No annual returns to file with CRO
 

Disdvantages of Sole Trader/Partnership:

- No Limited liability. No limit on personal liability for the debts of the business
- Profit is taxed at personal tax rates (up to 52%) instead of corporation tax at 12.5%.
- Limited scope to avail of pension tax breaks and executive pensions
- Not be suitable for certain contractors who need a limited company
- May not be considered as credible as a limited company when tendering for contracts, etc.

Should you wish to register your business with Company Bureau, please contact us via our website www.companyformations.ie

Best of luck with your venture and congratulations!

Ireland is now the most globalised nation in the western world according to Ernst & Young’s 2011 annual Globalisation Index, published last week. Ireland has jumped up to 2^nd place overall in the world in terms of GDP, and is forecast to stay in second place internationally until at least 2015.

The current top ten most globalised nations according to E&Y are (1) Hong Kong, (2) Ireland, (3) Singapore, (4) Belgium, (5) Sweden, (6) Denmark, (7) Netherlands, (8) Switzerland, (9) Finland, (10) Hungary

Despite faltering economic predictions internationally, Ireland’s export-driven economy is forecast to show modest growth in 2012 before strong growth of around 3% is predicted for the years 2013-2015.

To see how you can avail of Ireland’s benefits for doing business, and why Ireland is set to become the best small country in the world in which to do business by 2016, please don’t hesitate to contact Company Bureau on +353 1 6461625

• Creditors Voluntary Liquidation
• Members Voluntary Liquidation
• Compulsory (Court) Liquidation

Creditors Voluntary Liquidation

A creditors voluntary liquidation (CVL) is where an insolvent company voluntarily decides to go into liquidation. Company Bureau can assist you by advising on your statutory responsibilities and assist in the procedures necessary for the company to be placed in liquidation.

A creditors voluntary liquidation is usually initiated by the company’s directors. The board of directors must hold a board meeting to agree that the company should be placed into administration, and that notices should be sent to shareholders and creditors.

The 1963 Companies Act states that ten days notice of the meeting must be given to all creditors. The creditors meeting must also be advertised at least ten days before the meeting in at least two daily newspapers which circulate in the district where the registered office or the main place of business of the company is situated.

The presiding director usually reads a short statement which outlines the reasons why the company is being placed into liquidation. The director is also required to present a Statement of Affairs which describes the book value of the company’s assets together with their realisable value, which may be quizzed by the creditors.

Members Voluntary Liquidation

A members voluntary liquidation occurs when a directors decide to retire, or when a company has run its course, to realise its assets and distribute its surplus to the shareholders in a tax efficient way. It is also a useful way to dispose of dormant companies that no longer have any useful purpose.

Members voluntary liquidation is initiated by the shareholders and there is no creditor involvement. A Declaration of Solvency must be signed by the directors stating that the company can pay any remaining debts in full within 12 months. The company is dissolved following completion of the liquidation.

Compulsory Liquidation

This is generally as a result of a winding up order on the instruction of a court on foot of a petition from a creditor, the Director of Corporate enforcement, A shareholder, or the company itself. An Official Liquidator is appointed by the Court with powers to liquidate a company, investigate its activities and pursue directors.

For more details and a free and discreet consultation with our Liquidator, please don’t hesitate to contact us.

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.