Caitlyn Buchanan, 12th February 2020
This guide contains useful information for residents who are ready to set up a company in Ireland. Ireland is home to many startup companies driven by entrepreneurs in a variety of industries. The following Irish company requirements need to be met so that you can be your own boss and get your business venture ready to start trading.
If you are not currently a resident in Ireland please switch over to Setting Up A Company in Ireland – Requirements for Non-Resident directors.
Irish Limited Company or Sole Trader?
Irish residents have the option to operate as a sole trader or form an Irish limited company. In most cases we recommend an Irish limited company (LTD), this is the most popular company type for private and commercial business ventures. There are 3 main reasons why LTD companies are superior to Sole Traders:
- Limited Liability means that the company member’s personal assets are protected should the business comes into trouble. A Sole Trader is liable for business debts.
- Company Name is protected meaning that other companies cannot register the same name or a similar name. A Sole Trader’s business name is not protected.
- 12.5% Corporation Tax A Sole Trader will pay personal tax rates of between 20% and 40%.
View the full list of Company Types available in Ireland. The following Irish company requirements should be taken into consideration when setting up a limited company in Ireland.
Company Officers and Shareholders
- Directors Irish limited companies are required to have at least one director who is a tax resident in the European Economic Area (EEA). A tax resident is generally defined as someone who has a had a primary residence for 180 days or more. This means that an Irish national who has been living in Australia for the past 6 months would not qualify as the sole director of an Irish company.
- Secretary If the company has 2 or more directors, one of the directors can also act as secretary. Should you require a qualified company secretary to ensure your company is compliant with Irish filing requirements, Company Bureau provides Annual Company Secretary Services.
- Shareholders Irish companies are required to have at least one shareholder, typically the directors will have a stake in the company.
An Irish limited company can choose to set a maximum number of shares that the company can allocate this is called the authorized share capital. Company Bureau’s recommended authorised share capital is 100,000 ordinary shares valued at €1 each. However, there is also an un-capped option which is very popular. Read more about Authorised Share Capital.
Registered Office Address / Desk Space
Registered office Address Irish companies are required to have a registered office address within the Republic of Ireland. If the company doesn’t have an office space a director may choose to use their home address as the company’s address. However, some business people will choose to purchase a Registered Office Address Service.
Desk Space Another popular option is to rent desk space in a serviced office location. This is a more cost-efficient option than renting an entire office because there are no additional overheads such as lighting, Wi-Fi, heating etc. Company Bureau has a limited amount of Desk Space available for rent, we are also a part of a large network of coworking space providers and we would be happy to assist you in finding the right space for your business.
Corporation Tax and Vat Registration
Corporation Tax After a company has been incorporated, it is required to register for Corporation Tax within 28 days of trading. If the company does not intend to start trading immediately, there is an obligation to notify the Revenue Commissioners why the company has not registered.
VAT Registration Irish companies are only required to register for VAT when their turnover exceeds €37,500 for services or €75,000 for goods. However, some businesses may choose to register before it reaches the above figures. This is because VAT registered companies may be eligible for VAT deductions incurred on purchases.
How to Set Up a Company in Ireland
Attempting to register a company on your own is a long and thankless process. Company Bureau can streamline this process for you and have your company formed in just 2-4 business days when you order an Irish company online. Once your order has been received, our team will prepare the company documents and draft the constitution for signature (all company officers and shareholders must sign the documents). The company application will then be lodged, and we will prepare your full corporate package including all legal documents and company seal.
For more information on the requirements of setting up a company in Ireland please contact us on +353 (0)1 6461625 or e-mail email@example.com.