The most registered type of the companies in Ireland is Limited Liability Partnership (Limited). There are no special requirements for authorized capital as well as there is no requirement for paid-in capital. Usually company is registered with a share capital of 2 000 pounds, 2 pounds of which shall be paid.
The minimum number of shareholders required to incorporate Irish company is one (natural or legal person – resident of any country). Usually at least two directors have control over the company and one of them must reside in Ireland. It is a must to appoint for a Secretary, natural or legal person, not necessarily the resident of Ireland. He/she may also combine the position of director.
Information about the beneficial owner of the company is confidential and kept at the registered agent office.
The name of this type of Irish company must end with the word «Limited» or the abbreviation “Ltd”. Without a specific license, the company cannot use the following words for its name: “Bank”, “Insurance“, “Co-operative“, “Credit Union“, “Group“, “Holding“, “Building Society“, “Royal“.
It takes approximately 10-12 days to incorporate a company and up to 6 weeks to receive a full set of corporate documents.
Taxation of Irish companies
Ireland has Agreement for avoidance of double taxation with more than 50 countries.
There are two rate of corporation tax in Ireland: the standard rate of corporate tax on income derived 12.5% for trading income and 25% for non-trading income (i.e. investment or rental). A special rate of 10% applies to companies involved into the production activity (typically large multi-nationals).
The standard rate of value added tax in Ireland is 23%. The 13.5% rate applies to many labor-intensive services as well as restaurant meals and bakery products. A 5.2% rate applies to the agricultural sector.
If the company receives a turnover in the territory of the EU, the applicable current rate is 0%.
The standard capital gain tax in Ireland is 33%. However, it is possible to use the “participation exemption” mode for the companies that have 5% of shares in the subsidiaries of the Irish company (residents of the EU or having a tax treaty with Ireland).
Dividends received by an Irish company may be taxed at a rate of 12.5 or 25% depending on the status of the foreign subsidiary. Thus, dividends received by an Irish holding company from EU companies or from countries having Double Tax Treaties with Ireland or information exchange agreements are taxed at a rate of 12.5%. The profit part of which is distributed in the form of dividends must be received from the trading activities. The 12.5% rate applies to dividends received from subsidiaries of the states that do not have tax treaties with Ireland. The shares of these companies are traded on a recognized stock exchange. In other cases the rate will be 25%. Dividends received from other Irish company (i.e. within the country) are not taxed.
Dividend Withholding Tax is deducted at the rate of 20% from dividends paid by Irish companies. It can be set off against income tax due or reclaimed, where the recipient of the dividend is not liable to the tax.
Outgoing dividends paid by the Irish company are exempt from the withholding tax in Ireland to:
a) a company or an individual, a resident of the EU or countries that have agreements on avoidance of double taxation with Ireland;
b) a company under direct or indirect control of persons, who are resident in the EU or countries that have Agreements for the avoidance of double taxation with Ireland.
Accounting and audit of Irish companies
Irish companies are required to keep accounting records and submit annual reports within 9 months after the end of the reporting period (31st December). Audit requirements apply to all companies, except for those whose turnover does not exceed 7.5 million euro.
In Irish companies it is allowed to appoint nominee directors, shareholders and secretary.
Opening a bank account for companies in Ireland
Account for the Irish company can be opened in any of our partner banks.
It is important to keep in mind that every bank account opening procedure is individual and depends on the accuracy and timeliness of information and documents provided by the client.