Are you thinking of expanding your business into Ireland?
If your company is expanding its business into Ireland you can either set up an Irish subsidiary company or a branch office. This is a very popular topic in Ireland at the moment, particularly among companies who will be potentially affected by Brexit.
An Irish subsidiary company is seperate legal entity that is either partially or wholly owned by another company.
A branch is essentially an office of a foreign company that is operating in Ireland.
We recommend talking to our team of experts to help you find the best option for your company and opening up in Ireland.
What is the difference between a Subsidiary and a Branch?
A subsidiary is a separate legal entity to its parent company, and to register one you must register an Irish Limited Company with the Companies Registration Office.
This means a subsidiary has the same annual filing requirements as a standard Irish company and can act independently of the parent company.
This separate legal distinction can limit the risk for the parent company in the case of legal disputes. As the Irish subsidiary will be involved in any legal proceedings in Ireland, not the parent company.
A branch is a foreign office of a parent company that is opened to perform the same business operations as the company in another country.
Registering a branch is essentially a legal entity that is doing business in Ireland, and happens to have an office in the state.
Therefore the parent company is not protected from any potential legal and financial issues that may arise.
What are there any tax implications?
If you decide to register a subsidiary company in Ireland, it will be subject to the corporate tax rate on all its profits and the strict annual filing requirements of an Irish Limited company.
With a branch office only the activities of the branch will be subject to corporation tax of in Ireland.
The corporation tax rate will either be 12.5% or 25% depending on whether or not your Irish entity is centrally controlled and managed in Ireland or in a foreign country.
To learn more about the corporation tax rate and what rate your company will fall under, take a look at our guide on how to qualify for the 12.5% rate of corporation tax in Ireland.
What are the accounting requirements?
For a Subsidiary
An Irish subsidiary has the same compliance requirements as any other Irish Limited company. 6 months after your subsidiary is registered you will have to file your first annual return with the Companies Registration Office.
12 months after you file this first annual return, and 18 months after your subsidiary is registered, you will be required to submit the first set of accounts for the company. You will then subsequently have to file a set of accounts every 12 months on this day.
For a Branch
A branch has to file a form F7 and a copy of the accounts that were filed in the parent company's country. Both a subsidiary and a branch are required to file a corporation tax return. which has to be paid 9 months and 23 days after the end of the company's financial year-end.
How do I set up an Irish Branch?
If you register a branch in Ireland, your parent company will be required to submit a set of legalised and authenticated documents in English to the Irish Companies Registration Office (CRO).
How do I get these documents certified?
To get the documents legalised and authenticated usually requires the documents to be notarised and apostilled in the parent’s company’s country. The authenticated documents to be submitted to the CRO includes a set of the companies accounts, a Certificate of Incorporation for the company, the company’s articles of association and more.
What else do I need to know?
Your branch is also required to have a registered address in the Irish state and a company secretary.
Once the authenticated documents and registration forms have been submitted to the CRO, the registration of the branch will take anything from 7-10 days.
How do I open an Irish Subsidiary?
When you are opening a subsidiary in Ireland, you are essentially registering a new company. Therefore to open a new subsidiary you will have to fulfill the exact same requirements as opening a new Irish Limited Company.
Our company registration packages are perfect for Irish subsidiaries as you will have the services your Irish company needs from the very start, at a 25% discount.
Requirements for opening an Irish Subsidiary
- Registered with the Companies Registration Office
- Registered Address in Ireland
- A non-EEA directors bond for non-EEA residents directors
- 1 director and 1 company secretary
- Share capital and shareholder(s)
- A company seal to stamp certain company documents