By Simon O’ Connor, 10th November 2015 (Updated 12th September 2019)
At Company Bureau we understand that the company formation process is only the first step to building a successful business. Post incorporation, your next priority should be to ensure your company has been registered for taxes and that your company bank account is opened quickly so that you can start receiving and making payments.
A company Bank Account is a necessity for every company in Ireland in order to make and receive payments. We recommended applying for a business bank account as soon as your company has been incorporated as it can take a few weeks to set up. You need to make sure that you have an up to date passport for all directors and shareholders holding 25% or more of the shares, as well as proof of address documents dated within the last 6 months. Once the account is opened you will most likely need to apply for online banking separately which takes another few days to set up. If your business needs to take credit card or online payments, you will also need to set up a merchant account. For assistance with any of this please don’t hesitate to contact us.
Every Irish company is obliged to register for Corporation Tax within one month of commencing trade. This is tax due annually on all worldwide company profits to tax resident companies. The Corporation Tax rate in Ireland stands at an attractive rate of 12.5% and can go as low as 6.5% for Research and Development (R&D) Companies. You can file your accounts through Revenue Online Service (ROS), however, it is generally better to get an accountant or tax advisor to take care of this for you.
Value Added Tax (VAT)
VAT is essentially a tax on consumer spending. It is not mandatory to register for VAT unless certain thresholds are reached – Generally, €75,000 for goods and €37,500 for services. If your business is VAT registered, you must charge VAT on sales but can reclaim the VAT incurred on its purchases. The standard rate for goods & services is 23% and the reduced rate for fuels, building services and take-out food is 13.5%. Vat returns need to be made generally every two months. You can file yourself through Revenue Online Service (ROS), however, as with tax registration, it is generally better to get an accountant or tax advisor to take care of this for you.
To qualify for VAT registration you must:
- Trade within the state; or
- Have a physical presence in the state
- Your main supplier is located within the state
- Have employees in the state paying Irish taxes
Beneficial Owners Filing
All Irish limited companies now have a statutory obligation to file information of the beneficial owners with the Central Register of Beneficial Ownership (RBO) within 5 months of incorporation. A beneficial owner is a natural person with a 25% or more stake in a private company, trust, or provident society, or someone with significant control. The RBO online portal was established and began accepting filings in June 2019. Any companies that were incorporated before this date must file by the 22nd November 2019. It is considered a breach of statutory duty not to file and there could be fines of up to €500,000.
Please click this link for more information or professional assistance Filing of Beneficial Owners with the RBO.
Accounting & Filing Obligations
An Annual Return is a document to confirm the directors, secretary, shareholders and share capital of the company. The first Annual Return Date (ARD) is due six months post-incorporation and the company is given 28 days to file. The second ARD is then due eighteen months after the date of incorporation and the company has 28 days to file both the annual return and financial statements. Thereafter the company’s ARD will be every twelve months and will require the accounts to be annexed to the return.
Accounts must be filed with the CRO every twelve months accompanied by the annual return. A small company must have a balance sheet which does not exceed €6m, a turnover which cannot exceed €12m and must have less than 50 employees. In practice, the vast majority of companies can be exempt from an audit once they file annual returns on time.
The company accounts should consist of the following:
- Director’s report
- Statement of the director’s responsibilities
- Auditors report ( if required)
- Profit & Loss account
- Balance sheet
- Notes to the accounts including accounting policies
The company must submit an abridged set of their accounts to the CRO which consist of an abbreviated balance sheet and notes to the accounts including accounting policies. The company will also be required to submit an auditor’s report if the company is a parent or subsidiary company.
Company Bureau can assist you with opening a Bank Account, registering for tax and taking care of your accounting obligations. For more information on post-incorporation requirements, please don’t hesitate to contact us on 01 646 1625 or email email@example.com.
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.