Setting Up a Company in Ireland: The Transcript
Did you happen to miss our webinar on company formation and taxation in Ireland?
If so, don’t worry as we’ve got you covered.
Find below the event’s full transcript for your reading pleasure. A huge thank you to Damien Malone, Founder & Managing Partner of Malone & Co., in Ireland for taking the time to share his knowledge on his jurisdiction with all of us.
For now, here are some of the event’s main questions and highlights.
How does the process of setting up a company in Ireland work?
“Every Irish company must have a director, it must have a shareholder and it must have a company secretary. Now, if there's only one director in the business, that same person can’t be the company secretary. Of course, firms like ours can provide an outsourced nominee company secretary for that. The director must be resident in an EEA country and if they're outside of the EEA region, they will have to purchase an insurance bond. Now, the bond costs about 2000 Euros for two years and it gets renewed then. And I suppose we would work with many clients who would purchase the bond or other international businesspeople who would have a local presence on the board for that purpose and the management of the Irish operations. So we would get that information from any prospective clients; once we have all that, we can then proceed with drafting the incorporation papers on their behalf. We're often told how quick the process is in Ireland and how straightforward and easy it is in comparison to many other jurisdictions. We'd generally have the paperwork ready within a day of getting an order; we do need it back in original format and once we have it back in original format, we make the application to our company's office in Ireland and we will have the company usually within three or four days. So that's the timeframe. Obviously, the next steps, once the company is incorporated, is to get the company registered for the relevant taxes and to commence a bank account opening for the client.”
What are some of the accounting and tax obligations that companies have in Ireland?
“So the first obligation is every company after six months has to file an annual return with the company's registration office, which is a very straightforward and simple administrative return. It's just the declaration essentially of the company particulars and the company officers. After that, annually, every company has an obligation to prepare its annual accounts. They have to file what we call abridged accounts or statements, which are a shortened version of their actual financial statements on the public registry in Ireland. I suppose that can be a bit contentious for some clients for obvious confidentiality reasons. It's important to know and to have an accountant that knows what should be disclosed and what shouldn't with the objective of keeping the disclosures to the bare minimum at all times. There are some ways around that as well that we can touch on later, one of which is setting up an unlimited company over here. Unlimited companies generally don't have to file their annual accounts but, of course, the issue with that is the shareholders have unlimited liability protection for the debts of the business. But some people still love it just to have the confidentiality benefit.”
What other sorts of companies are available that you could open?
“You have quite a few options. Obviously, I would say 97% or 98% of the companies that we incorporated are just a standard limited company type, which is what I've explained to you above. You have another limited type of company that's called a DAC, a designated activity company. The main difference between this and the standard limited company is the DAC can only do the activities that are stated in its objects, memorandum and articles. So unlike a normal limited company that's basically free to engage in and carry on any business that its director sees fits, the DAC must stick to what is outlined in its constitution documents. The type of cases where we would maybe see DACs being used is, let's say, two parties are getting into a specific joint venture. In order just to narrow the focus of what the activities of the venture is they might decide to incorporate a DAC for that purpose. We would also see certain businesses maybe that are under the regulation of the Central Bank in Ireland; they actually have to be designated activity companies as well.”