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THE MAIN CHARACTERISTICS OF IRELAND COMPANY

GENERAL
Type of entity
Private Limited Company
Type of law
Common
Shelf company availability
No
Our time to establish a new company
1 week
Migration of Domicile Permitted
No
Corporate taxation
12.5% on profits
Double taxation treaty access
Yes
SHARE CAPITAL OR EQUIVALENT
Standard currency
EUR
Permitted currencies
Any
Minimum paid up
EUR 1
Usual authorised
EUR 1,000,000
DIRECTORS OR MANAGERS
Minimum number
Two
Local required
No
Corporate Directors permitted
No
Publicly accessible records
Yes
Location of meetings
Anywhere
MEMBERS
Minimum number
One, normally Two
Corporate Members permitted
Yes
Publicly accessible records
Yes
Location of meetings
Anywhere
COMPANY SECRETARY
Required
Yes
REGISTERED OFFICE/AGENT
Required
Yes
ACCOUNTS
Requirement to prepare
Yes
Audit requirements
Yes, small company exemptions
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
OTHER
Requirement to file annual return
Yes
Change in domicile permitted
Yes

PRESENTATION OF JURISDICTION

Ireland is a large island situated on the west of Great Britain with territory of 84,079 square kilometers. The population of the country is almost 4.6 million people. Ireland has a favorable geopolitical position, because it is located between Northern Europe and North America. Ireland is part of the EU and is a member of NATO. Ireland is a very attractive country for investment due to the corporate tax rate, the absence of fine capitalization rules, the regime of foreign controlled companies and a wide network of tax agreements.

The political and legal system of Ireland is represented by a stable parliamentary democracy. There is political pluralism in Ireland. The Constitution is the highest normative legal act. According to the Constitution, the country is headed by the president.

Legislative power is exercised by a bicameral parliament, including the President, the Senate and the House of Representatives. The term of office of the parliament and the President is 7 years. The government, headed by the Prime Minister, exercises executive power. His candidacy is proposed by the House of Representatives, but appointed by the President of the country. The Government is responsible for its activities before the House of Representatives.

The highest judicial body is the Supreme Court, courts of appeal are represented by higher courts. At the local level, district courts operate as courts of first instance. The lowest level of the judicial system is the district and precinct courts. The legal system of Ireland refers to English common law. Irish legislation is not codified. The judicial system is characterized by the use of case law, which includes decisions of the highest judicial instances.

INTEREST OF THE JURISDICTION

Advantages of a company in Ireland

  • No requirement of minimum capital to be paid up.
  • No exchange controls.
  • Prestigious European jurisdiction;
  • One of the lowest corporate rates in Europe;
  • Advantageous geographical location of jurisdiction.

Disadvantages of a company Ireland

  • The accounts of the company must be audited annually.
  • For the application of the tax rate of 12.5%, it is necessary to conduct part of the activities within the country.

Types of companies and incorporation procedure

The main types of companies that can be registered are private companies and public companies. The most popular form of doing business is private limited companies, as their members bear limited responsibility. The Companies Act 2014 provides for such types of companies as a new model company (LTD) and a designated activity company (DAC). The company is headed by a director or a board of directors.

It is also possible to create partnerships where participants bear joint responsibility (ordinary (general partnership), or 1 member bears full responsibility, and the other members bear limited liability (limited partnership).

01. Private company Limited by Shares (LTD)

At least one participant is required to create LTD. The liability of the members of the company is limited to the amount of the nominal value of the shares that belong to them. One director is enough to manage the company, and in this case he must have a separate company secretary. There are no restrictions on the minimum or maximum share capital.

Such a company can carry out any lawful activity, provided that the licensing requirements of state bodies are complied with, depending on its type of activity.

02. Designated Activity Company limited by shares (DAC)

Unlike LTD for this type of company requires a certain package of statutory documents, which includes a memorandum indicating its business objects, and an articles of association. DAC requires at least two directors and a secretary. If there are more than one member in the company, annual meetings of shareholders are required.

03. Public limited company (PLC)

A minimum authorized capital of 25 thousands EUR is required for creation a public limited company. Shares of such a company may be offered for sale publicly. At least two directors and a secretary are required. It should be noted that the PLC has more stringent reporting requirements.

Taxation

  • Corporate tax is levied on all income of resident companies in Ireland. Residents of Ireland are companies that are registered in this country or have a central office here. The amount of taxable income is calculated and adjusted in accordance with the law.

  • As a rule, corporate tax is not charged on dividends received by resident companies of Ireland from other resident companies in Ireland. Dividends received from a non-resident company are taxed at a rate of 12.5% if treaties on avoidance of double taxation are applicable. Exemption from participation in accordance with the corporate practice of the EU may be applied to dividends, interest and royalties.

  • The rate of corporate income tax is 12.5%. This corporate tax policy of Ireland positively influences the inflow of investments and attracts business. At the same time, Ireland offers not only a low tax burden, but offers business a highly developed economic infrastructure and advantages of the EU zone.

  • In addition, Ireland doesn’t apply the regime of controlled foreign companies, the rules of thin capitalization, there is no capital duty.

  • As a member of the EU, Ireland applies a VAT regime similar to other countries. The VAT rate is 23%, however, a reduced tax rate applies to some types of goods. VAT is not levied on medical, dental and optical services, admissions to sporting events, insurance services, certain banking and stock exchange activities, passenger transport, educational services and certain childcare services.

Banking system and economy overview

Despite its small size, Ireland is one of the developed industrial-agrarian countries. Ireland has a dynamic, modern economy, which is dependent on trade. Ireland maintains strong trade relations with Great Britain, the EU countries, the United States. In response of the economic recession, Ireland has carried out various economic programs designed to decrease the prices and wage inflation, increase the workforce’s skills, invest in and develop the infrastructure and contribute foreign investment. Irish companies are often required to act in commercial transactions because of the Irish commercial reputation and legal system.

The investment climate, excellent transport infrastructure, skilled labor, low level of corruption and effective public administration favorably affects on reputation of this jurisdiction.

The most important sectors of the economy of Ireland are pharmaceuticals, the production of medical equipment, engineering, information technology. Also an important sector of the economy is tourism.

The financial infrastructure of Ireland is represented by a developed banking system, which is regulated by the Central Bank of Ireland. His powers also include the maintenance of currency stability, the implementation of monetary policy, the management of foreign exchange reserves. In the capital of Ireland, Dublin, a large number of international banks and institutions specializing in the provision of financial services are concentrated.

HOW TO
PROCEED

To incorporate or purchase a company the following documentation should be provided:

01

A completed application form signed by the company or by the representative

03

A personal bill, which is less than 3 months old from the date of the application

02

Copy of valid passport

04

Payment of our fees

Note: additional documents may be required depending on the certain offshore bank.

Set-up time: From the moment, we are in possession of all required documents:

3 days

Incorporation of
a company or purchase
of an existing company

15 days

Delivery of the original
company documents

3 weeks

Offshore Bank: offshore
bank account opening