What Is A Limited Company?
A Limited Company (LTD), otherwise known as a “Private Company Limited by Shares’, is the most common type of business structure in Ireland. Features of a limited company include a legal separation of ownership and management, limited liability, and share capital.
We offer a company formation service that ensures your Limited Company is set up within one week.
What Is Limited Liability?
Limited liability offers protection for a shareholder’s private assets. It ensures that they are only responsible for the company debts up to the point of their investment in the shares of the business.
What Do I Need To Set Up A Limited Company In Ireland?
Any Irish Limited Company needs the following:
- A minimum of one Director
- A separate Company Secretary (if the company has two or more Directors, one can also act as Company Secretary)
- A Registered Address and Business Address in Ireland
- A Company Seal
If the company does not have a minimum of one Director that is resident in the EU or EEA you will also require a Non-EU Director Bond.
In order to form the company we will need a verified copy of ID and proof of address for each of the Directors. You can see all of our fees for Company Formation services and purchase here: https://accountantonline.ie/services
What Are The Benefits Of Having A Limited Company In Ireland?
There are many upsides to incorporating your business. There are more tax reliefs and personal tax benefits available for Limited Companies, not to mention the much lower rate of tax that Limited Companies have to pay on their profits.
Limited Companies also offer protection of company name and of shareholders private assets. While also giving more credibility to your business with potential clients.
Are you convinced that setting up a limited company is the right move for your business? Check out our company formation service which helps take the stress out of incorporating your business.
How Many Directors Must An Irish Limited Company Have?
A private limited company can have anything from 1-50 directors.
Can Directors Become Shareholders Too?
It is very common, especially in Startups, for the company director to also be a shareholder in the company.
What Is The Difference Between A Limited Company And A Sole Trader?
As a sole trader, there is little legal distinction between you and your business. Therefore all business debts also become personal debts and any personal assets, like property, are not protected.
A limited company is its own separate legal entity, which ensures its shareholders are only financially liable for the amount they have invested in the company.
Is Setting Up A Limited Company In Ireland Difficult?
It is not a difficult process, but it certainly can be stressful! There are many legal documents, including the Form A1 and Constitution, that has to be handed into the Company Registration Office (CRO).
Other processes, such as appointing a company secretary and ensuring the CRO approves of your company name, also have to be done in a professional and legal manner.
Luckily for you, we offer a Company Formation service which helps to alleviate the stress of setting up your company.
What Is The Certificate Of Incorporation?
The Certificate of Incorporation is a digital document that is issued by the Companies Registration Office to confirm the formation of a limited company.
What Is The Companies Registration Office And What Is Their Role?
The Companies Registration Office (CRO) is responsible for incorporating Irish companies. They are also responsible for the receipt and regulation of all documents post incorporation (including the annual returns), enforcement of regulations relating to the filing obligations of companies and making sure that information on the companies is readily available to the public.
Does My Company Name Have To Be Unique?
Yes, when you make your company submission the Companies Registration Office (CRO) will carry out a name check against its database of registered Irish company names. If your proposed name is too similar to anything from this database, your company submission will be returned.
Read our top tips on choosing your company name here!
What Is The Memorandum And Articles Of Association?
What Are The Different Types Of Shares That Have To Be Released During Company Formation?
There are two types of shares to consider releasing during company registration. One type is the ‘authorised shares’, which outlines how many shares you can potentially issue at present or in the future.
The second type, ‘issued shares’, are shares that have been paid and distributed to shareholders already. For example, if you were to issue two people fifty shares each, they would then own 50% of the company.
How Many Shares Should A Company Issue?
We would recommend to have 100,000 authorised shares and to issue 100 shares at €1 in Value.
Speak to our Client Services team for more expert feedback on any questions you may have!
What Is A Companies Business Address?
Your business address, also known as your trading address, is where your daily business is conducted.
It is the location that the Irish Revenue Commission, other businesses and people in general use to send correspondence addressed to your business.
Is It A Legal Requirement To Have An Irish Business Address?
If you’re looking to set up a Limited Company or if you are a Sole Trader in Ireland then you are legally required to have a business address in the State.
Can I Use My Home Address As My Business Address?
Yes, it is perfectly legal to use your home address as your business address.
If you’re interested in keeping your home address private for your business correspondence, then avail of our Dublin 3 address with our Business Address mail forwarding service.
Why Use Accountant Online's Business Address Service?
Our Business Address service is perfect for companies who are still in the process of securing premises in Ireland. Using this package will ensure that your mail is opened and scanned to you on the same day, while also allowing you to use our Dublin 3 address in your correspondence.
If your trading address is also your home address and your concerned about your privacy, our Business Address Mail Forwarding Service may be perfect for you. This ensures all your business correspondence will be addressed to our Dublin 3 address, keeping your home address private.
Using Accountant Online’s Address for your business correspondence can also help give your company a more professional look to potential customers.
What Is A Registered Office For A Company?
Your Companies Registered Office is where all mail from the Companies Registration Office (CRO) addressed to your company is sent. This address will also be published on the CRO website.
With our registered office package, your business can use our Dublin based location as your official registered office.
What Address Can You I Use As A Registered Office?
If you’re still in the early stages of your start-up you can use your home address as your registered office.
If you’re concerned about privacy then you should be aware that the Companies Registered Office (CRO) publishes all of the registered office addresses on their website.
Our Registered Office service ensures all of your private address remains private while ensuring all of your mail from the CRO is opened and scanned on the same day.
What Is A Registered Office Agent?
Can I Change My Registered Office In Ireland?
Yes, you can easily change your registered office by sending a signed B2 form, which can be filled out online at Core Website, to the Companies Registration Office (CRO).
The CRO must be notified within 14 days of the change.
Can A PO Box Be Used As A Registered Office In Ireland?
No, your registered office must be a physical location. People have the right to visit your companies registered office to inspect certain registrars and documents, as well as having the right to deliver documents directly.
What Is The Difference Between A Business Address And A Registered Office In Ireland?
Your Business Address is where the day-to-day running of your company takes place. It is also known as a trading address. When you purchase our business address service, it is essentially a mail forwarding service. Revenue, other businesses, and people need to know where to send your business post.
Your Registered Office is your official company address. This is where the CRO asks you to keep all of your statutory books and records and it is officially named as a record on the CRO as your company address.
Can I Use The Same Address For Both My Registered Office And Business Address For My Irish Company?
Yes, it is perfectly acceptable to use the same location for both your business address and registered office.
You can avail of our central Dublin 3 Address as both your registered office and business address with our Virtual Office package.
What Is A Company Secretary?
A Company Secretary is a named representative on all of a companies legal documentation. Your company secretary will be required to countersign on all documentation such as Annual Returns and Bank Accounts.
Check out our blog post on why you need a company secretary.
What Is The Role Of A Company Secretary In Ireland?
The Company Secretary is a legal adviser, facilitator, and communicator to the board and the companies shareholders.
For more information have a look at our blog post on why you need a Company Secretary!
Do I Need A Company Secretary For My Irish Company?
It is a legal requirement for companies in Ireland to have a company secretary.
You can outsource your company secretarial services to Accountant Online with our Company Secretarial package.
Can A Company Director Also Be A Secretary In The Same Irish Company?
If there are two or more directors of a company then it is possible for one of these directors to also become the company secretary.
However, if there is only one director for your company, then you must appoint someone else as a company secretary.
You can appoint us as your company secretary with our company secretarial service.
Who Can I Appoint As A Company Secretary?
You can appoint anyone over the age of 18 as your company secretary. The company secretary does have to carry out important tasks and duties, with punishments and fines being handed out if these responsibilities aren’t met.
Therefore it is important to hire a company secretary who is competent and up to the job. Our Company Secretarial package ensures these duties are carried out in an efficient and professional manner!
What Are The Duties Of A Company Secretary In Ireland?
There are multiple duties that can be carried out by a company secretary, with the full list of possible duties being published in this Companies Registration Office leaflet on the Company Secretary.
An example of some of the duties that we carry out in our company secretarial package are as follows:
- Filing of the Annual Return and Accounts with the Companies Registration Office
- Looking after all Company Secretarial matters e.g. miscellaneous changes in directors, registered office, shareholders, increase in share capital, includes up to 5 changes per year
- Maintaining and updating the Seven Statutory Registers
- Minutes of Meetings of the Company including the Annual General Meeting and notice of same.
What Is The Irish Annual Returns (B1 Form)?
An Annual Return, or the B1 Form, is an online document that sets out certain prescribed information about your company.
This document has to be delivered to the Companies Registration Office(CRO) at least once a year.
When Is My AR (Annual Returns) Due Date For My Company In Ireland?
As explained on our blog post on the Annual Return deadline, you have to submit your 1st Annual Returns (B1 Form) within 6 months of the formation of your company.
Your 2nd Annual Returns and Accounts is due 18 months after the formation of the company. With your Annual Returns subsequently being due every 12 months on this date.
If My Company Isn't Trading, Am I Still Am I Required To File An Annual Return?
All companies, whether trading or not, are required to fill out an annual return once a year.
What Accounts Do I Have To Submit With My Annual Returns In Ireland?
With your 1st Annual Return, you only have to submit your B1 form.
However, with all your subsequent Annual Return you are legally required to submit your “abridged accounts” along with your B1 form. These accounts are a summary of your financial statements for the year e.g. profit/loss, assets, income and expenditure.
Request a quote from us today and let us look after all your annual returns and accounts!
What Are The Statutory Registers?
Statutory Registers are records that have to be kept at your registered office address. The company secretary is responsible for maintaining these registers.
Do I Need A Company Seal For My Irish Company?
Under Irish law, every Irish Limited Company is required to have a Company Seal (also known as the Common Seal). The company secretary can hold onto the seal on behalf of the company.
Order your Company Seal today from Accountant Online for €49 + Vat.
What Is The Purpose Of A Company Seal?
The company seal is used on official company documents, such as the transfer of shares, to ensure that they are original.
Can A Non-Resident Director Set Up A Company In Ireland?
If you are a resident of a country in the European Economic Area (EEA) then you can register your limited company in Ireland.
You can also set up a limited company in Ireland if you are a non-EEA resident. However, you will be required to purchase a non-resident director bond to ensure your company meets all your statutory obligations for a period of 2 years.
You can take care of this legal requirement with Accountant Online’s Non-EEA Resident Directors Bond.
Does An Irish Company Need A Resident Director?
No, if you’re a non-EEA resident you can be a director of an Irish company, but you are legally required to buy a non-resident directors bond.
The Revenue Commission can provide you with a statement that shows your company has a real and continuous link with Ireland. This will allow your company to have a non-EEA director and will also make you exempt from taking out the bond.
This statement is usually only giving out to companies who are well established in the country already.
What Is VAT?
VAT stands for Value Added Tax. It is a tax that is added on to the value of goods or services at every stage of production or distribution. As a consumer, most of the goods or services that we purchase have VAT included in the price. VAT is collected by Revenue via businesses that have registered for VAT.
Who Can Register For VAT?
Any business that is based in Ireland or is providing a service or goods to Irish customers can register for VAT. When you apply to Revenue for a VAT number, you will need to show that you have the need for one. During the VAT registration process, Revenue will want to see is evidence that you are trading in Ireland. Examples of this evidence include invoices to Irish clients, receipts for expenses in Ireland, employees that are based in Ireland or offices in Ireland.
When Do I Register For VAT?
The VAT thresholds in Ireland are: €37 500 for services and €75 000 for goods. You have to register when you are likely to reach the threshold in the next 12 months. What does reaching the threshold mean? You have reached the threshold for VAT when your income minus the VAT spent on purchases is higher than the threshold. You can read more here: https://accountantonline.ie/how-do-i-register-for-vat-in-ireland/
How Long Does The Application For VAT Number Take?
The VAT application can take up to 28 business days from when it’s on Revenue’s desk, so it’s important to apply early. If you are not sure how to apply, we can apply for you. We are happy to provide you with a quotation for this service. Get in touch to inquire about becoming a client.
Will I Have To Register For VAT In Other Countries For An Irish Company?
Yes, you may have to register for VAT in other countries. For example, if you are selling goods in Spain you will need to register for VAT when your income from Spain reaches the VAT threshold in Spain.
Will My EU Company Have To Register For Irish VAT?
Yes, if you reach the VAT threshold in Ireland you will have to register for VAT. That means that if your company’s income from Ireland over a 12 month period is likely to be above the VAT threshold you should register for VAT.
What If I Am Registered For VAT And I Am Selling To Or Purchasing From A Non-Irish, EU Business?
When EU companies are trading with each other, if they are both registered for VAT the company selling goods or services should add their VAT number as well as the VAT number of the company making the purchase to the invoice. There will be no VAT charged on the invoice, however both companies will have to include the invoice as part of their VAT returns.
What if I Am Not Registered For VAT And I Am selling To Or Purchasing From A Non-Irish, EU Business?
The company that is purchasing the goods or services will have to pay VAT if they are not VAT registered.
A non-EU company?
Non EU companies should not pay VAT.
What If I Am Not Registered For VAT And I Am Selling To Or Purchasing From An Eu Company Registered For VAT?
If you are not registered for VAT you can not charge VAT and you should also not mention VAT on your invoice. If you are purchasing from a company in the EU and you are not registered for VAT you have to pay the VAT.
What If I Am Not Registered For VAT And I Am Selling To Or Purchasing From an EU company Not Registered For VAT?
If neither you nor the business that you are trading are registered for VAT there should be no VAT charged on the invoice and no mention of VAT.
A non-EU company?
If you are purchasing from or selling to a business in a non-EU company there should be no VAT charged on the invoice.
What Is Moss?
MOSS stands for Mini One-Stop-Shop, it is a scheme that allows for a simplified filing of VAT returns for certain businesses. The VAT MOSS scheme is available for business that are
A) Selling telecommunications, broadcasting and electronic services
B) The services must be sold to non-taxable persons ie. it must be a B2C service.
These business have the opportunity of registering for the VAT MOSS scheme and do all of their filings in one EU country. The alternative for these businesses would be to register, charge and file VAT returns in each Member State that you sell services in.
You don’t have to register for MOSS, it is optional, however if you do register you have to file all of your VAT returns for all the Member States through MOSS.
When Do I Register For Moss?
You need to register for MOSS when you reach the threshold in any of the Member States, ie. if you are an Irish company and you haven’t reached the VAT threshold in Ireland, but you are also selling services in Germany and you are going to reach the VAT threshold there, you will either have to register for MOSS in Ireland or, if you don’t wish to avail of the MOSS scheme, you would have to register for VAT in Germany.
What Is VIES?
VIES stands for VAT Information Exchange System. It is a system that allows you to check if an EU VAT number provided to you is valid for an EU State. You can check that here: http://ec.europa.eu/taxation_customs/vies/?locale=en
When Do I Have To Register For VIES?
You need to register for VIES if you are selling services or goods to a VAT registered business in another EU state and these services or goods are zero-rated. That means that if you are an Irish business selling shoes to Swedish sports shops and you are zero-rating these sales on the premises that the Swedish sports shop has a VAT number you need to report those sales in your VIES return.
What Is Intrastat?
Intrastat is a system for collection of statistics across the EU for the movement of goods between the EU states.
When Do I Have To Register For Intrastat?
Any business that has
A) Imports from the EU states that exceed €500 000 over a 12 month period
B) Exports to the EU states that exceed €635 000 over a 12 month period
Needs to register for Intrastat.
What is the Corporation Tax Rate in Ireland?
There are three rates for Corporation Tax in Ireland, 6.25%, 12.5% and 25%. The 6.25% is for profits under the Knowledge Development Box, for example income from qualifying patents or computer programmes. The 12.5% Corporation Tax Rate is for trading income for businesses who are centrally managed from Ireland. The 25% Corporation Tax Rate is for non-trading income, and for businesses who are not centrally managed and controlled from Ireland. You can read more about the Corporation Tax Rate and how to qualify here: https://accountantonline.ie/how-to-qualify-for-corporation-tax-in-ireland/
When Do I Need To Register For Corporation Tax?
It is mandatory for all Irish companies to register for Corporation Tax within one month of trading.
Does My Business Qualify For The 12.5% Corporation Tax By Having An Irish Business Address And Registered Office?
Even if your business is using our Virtual Office service it doesn’t necessarily mean you will qualify for Ireland’s low corporation tax. To qualify you must prove that your business is centrally controlled and managed in Ireland.
Check out how you can qualify for Ireland 12.5% Corporation Tax rate in our detailed blog post on the topic.
Do I Need To File A Directors Return?
Yes, any Director of an Irish Limited Company needs to file a Directors Return. Even if you are not living in Ireland. The Directors Return is a Form 11 and it’s due on the 31st of October each year. The first Directors Return is due 31st of October the year after incorporation your company. For example if you incorporate your company in September 2018 your first Directors Return will be due 31st of October 2019.
What Are Tax free Vouchers?
Tax free vouchers offers a tax-efficient way of rewarding your staff. Under Revenue’s Small Business Exemption Scheme, employers can reward employees with a non-cash bonus of up to €500 in value completely tax free e.g. christmas bonus voucher. Provided that the necessary guidelines are followed, neither the employee nor the employer will pay PAYE, PRSI, or USI. Read more here: https://accountantonline.ie/tax-free-vouchers-ownermanagers/
What Is Relevant Contracts Tax?
RCT is a withholding tax which applies to payments made by the Principal contractor to a Sub-Contractor under a relevant contract. There is a common misconception that this particular tax relates only to the construction industry.
For Whom Does Relevant Contracts Tax Apply?
It commonly applies to the construction, Forestry and Meat Processing sectors, but any organisation can be within the scope of RCT. Other sectors may include financial services, telecoms, and retail sectors. The cost of non-compliance can be sever – up tp 35% of the relevant payment. The majority of these penalties stem from a misunderstanding of the rules. Here at Accountant Online, we can look after your RCT before it leads to penalties. Read more here: https://accountantonline.ie/rct-guidelines-vat-2/
What Is Preliminary Tax?
Preliminary tax is an advanced payment on account for your next tax year. The tax is a combination of your income tax, PRSI and USC that you expect to pay for the tax year.
How Do I Calculate Preliminary Tax?
Before the 31st of October you must calculate and pay one of the following. There are three options for calculating Preliminary tax 2018 due;
90% of the tax liability due for 2019.
100% of the tax due for 2018.
105% of the tax due for 2017.
The 105% tax payment only applies when you pay by direct debit.
What Is The Tax Rate For Sole Traders In Ireland?
A Sole Trader in Ireland is required to pay between 20 – 40% income tax on all profits. In addition, you must add USC of up to 11% and PRSI of 4%.
What Are The Standard Rate Cut-off Points For 2018?
Part of your income, up to a certain amount will be taxed at 20%, income above this amount will be taxed at 40%. The amount is known as the standard rate cut-off point, and it will vary depending on your circumstances.
The standard rate cut-off amounts for 2018 are:
Single person – €34 550
Married couple/civil partners with one income – €43 550
Married couple/civil partners with two incomes – Up to €69 100
One parent family – €38 550