How to Ensure Compliance when Setting up a Branch in Ireland

By Nicola Fitzpatrick, 28^th July 2023

Ireland is a popular destination for multinational companies seeking to establish a branch presence due to its attractive business environment and favourable tax policies. However, operating a branch company in Ireland comes with certain obligations and legal requirements to ensure compliance with Irish regulations. In this article, we will explore essential steps to keep a branch company in Ireland fully compliant and successful.

Register the Branch Company

The first step in establishing a branch company in Ireland is registering it with the Companies Registration Office (CRO). The parent company must provide the necessary documentation, including details of the parent company’s registration, the appointment of a local agent, and other required information. This registration process is vital as it legally recognises the branch’s presence and provides a unique identifier. It is important to note that any eligible company incorporated outside the State and establishing a branch in the State must be registered within 30 days of establishing the branch in the State.

Key Forms to File

When opening a branch in Ireland, several forms need to be completed to register the branch and ensure compliance with Irish regulations. Here are the key forms that must be filled out:

1. Form F12 – Application for Registration of a Branch (Companies Registration Office – CRO) This form is the main application for registering a branch company in Ireland. It requires details about the parent company, the proposed branch’s name, the principal place of business, the nature of the business to be conducted, and the name and address of the responsible individual or agent in Ireland.

2. Form 12A – Declaration of an Individual Non-Resident in the State to be an Authorised Signatory (Companies Registration Office – CRO) The responsible individual or named agent of the branch company should complete this form to declare themselves as an authorised signatory for the branch. This allows them to sign official documents on behalf of the branch.

3. Form 11 – Annual Return (Companies Registration Office – CRO) Once the branch is registered, it must file an annual return with the CRO. Form 11 provides a summary of the branch’s financial situation, including balance sheets, profit and loss statements, and other relevant financial data. The annual return must be filed within 28 days of the branch’s anniversary date.

4. Form 13 – Special Deliveries Section (Companies Registration Office – CRO) This form is used to make changes to the registered details of the branch, such as changes to the company name, registered office address, or details of the responsible individual. Keeping the CRO informed of any changes is essential to ensure accurate and up-to-date records.

5. Form TR2 – Application for a Tax Registration Number (Revenue Commissioners) When operating a branch company in Ireland, it is necessary to apply for a Tax Registration Number (TRN) from the Revenue Commissioners. This form is used to obtain the TRN and register the branch for various taxes, including corporation tax and VAT.

VAT Registration Forms (Revenue Commissioners) If the branch company will exceed the VAT registration thresholds (currently €37,500 for services and €75,000 for goods), it must register for VAT with the Revenue Commissioners. The specific VAT registration form will depend on the nature of the business and the type of supplies made.

Appoint a Responsible Individual

Every branch company in Ireland must have a responsible individual or a named agent who is a resident of Ireland. This person acts as the primary point of contact and is responsible for liaising with authorities and ensuring the company’s compliance with Irish laws and regulations. It’s crucial to appoint someone knowledgeable about Irish corporate law and regulations to ensure smooth operations.

Understand Taxation Requirements for a Branch Company

Ireland has a relatively low corporate tax rate, making it an attractive location for businesses. However, the branch company must be aware of and comply with Irish tax obligations. This includes understanding corporation tax, Value Added Tax (VAT), employment taxes, and other relevant taxes.

Maintain Proper Accounting Records

Keeping accurate and up-to-date accounting records is essential for compliance in Ireland. The branch company must maintain a complete set of financial statements, including balance sheets, profit and loss statements, and cash flow reports. These records and any other required financial statements should be filed with the CRO annually.

Comply with Employment Laws

If the branch company has employees in Ireland, it must adhere to Irish employment laws and regulations. These laws cover areas such as minimum wage, working hours, employment contracts, health and safety standards, and employee rights. Familiarise yourself with Irish laws and ensure that your human resources practices are in line with the country’s requirements.

Monitor Company Law Updates

Staying informed about any legislative updates or amendments is crucial for maintaining compliance. This can be achieved by regularly checking the CRO website, subscribing to updates from relevant government agencies, or seeking legal counsel.

Adhere to Data Protection Regulations

With the implementation of the General Data Protection Regulation (GDPR) in the EU, including Ireland, data protection and privacy are critical considerations for businesses. The branch company must comply with GDPR and ensure that any personal data collected and processed is done so lawfully and securely.

File Annual Returns

Every Irish branch company must file annual returns with the CRO. These returns provide an overview of the company’s financial situation and must be filed within a specific timeframe each year. Failure to submit annual returns on time may result in penalties or legal consequences.

Establishing and operating a branch company in Ireland can be a rewarding endeavour. However, compliance with Irish laws and regulations is of utmost importance to ensure smooth operations and avoid potential legal issues. By registering the branch company, appointing a responsible individual, understanding taxation requirements, maintaining proper accounting records, complying with employment laws, staying updated on company law changes, adhering to data protection regulations, and filing annual returns, your branch company can thrive in Ireland’s vibrant business landscape while remaining fully compliant.

If you would like assistance with setting up a branch in Ireland, get in contact with our team at Company Bureau! Give us a call at +353(0)1 6461625 or fill out our online contact form.

Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.