What steps do you need to take till you have your business up and running in Ireland?
2022-03-18
There are many reasons why companies should consider Ireland for expanding their business. Ireland is one of the top countries to set up within Europe. When considering the tax landscape, accessibility, consumers, as well as many other factors, companies realise the location's vital role.
Top-rated companies such as Microsoft, Facebook, and Google operate in Ireland. Many of these companies have chosen Ireland for several reasons including; low Corporate Tax rates of 12.5%; holding company incentives; the average cost of living and because the Ireland government is actively involved in economic productivity and very welcoming of foreign corporations.
To establish an entity in Ireland, the following information is important to consider.
Practical Steps on How to Establish a Business in Ireland
What steps do you need to take till you have your business up and running in Ireland?
Assess the market
Assessment of the market is a crucial step preceding the establishment of a company in Ireland or anywhere. Assessing the market entails grasping what a particular industry is all about, what it encompasses, and familiarising yourself with your soon-to-be competitors. Understanding how to position your product or service in a new country is also key to success.
Another vital consideration about market assessment is knowing your audience. Discovering the demographic or faction your likely consumers fall into cannot be overemphasised. It helps in strategising properly and saving time and cost.
Business incorporation
Business incorporation involves deciding your business structure, whether you want a sole proprietorship, a partnership, or a limited company. This article will be discussing what the process is like when it involves a limited liability company. If you are looking to discover other business incorporation options available, please contact us.
Limited Liability Company (LLC)
A limited liability company (LLC) doubles as a corporation and maybe a sole proprietorship or partnership, as it possesses characteristics of both. An LLC protects its owners from being personally liable for the debts incurred by the company. Now, what is the incorporation process?
– Designate a director. The first step to incorporating your business is to designate a minimum of one director who will manage the company's affairs in the interests of the shareholders. This director, however, must reside in a European Economic Area (EEA).
In a case where you have more than one director, and one of them resides in an EEA state, you're qualified to establish your company. Another alternative is purchasing the bond of €25,000 as contained in section 137 of the Companies Act 2014.
– Existence of shareholders. A director may be a shareholder, but not in all cases. Essentially, shareholders own shares or stocks in a corporation; they are its owners.
– Select a secretary. In this setting, a secretary transcends the everyday meaning of a secretary. One of the directors could double as a secretary as it is a crucial position, or a different person can be hired. The secretary is tasked with filing yearly returns and other essential activities, which, when defaulted, could attract stringent sanctions.
– Allocation of shares. Distributing a company's stocks or shares is fundamental, seeing as the process may determine the parties that own a company. When establishing a limited liability company in Ireland, you have to allocate shares.
– Brainstorm and cross-check a name for your company. When the idea of establishing a business in Ireland comes to mind, we suppose you must have thought up several names you'd like your company to have. That's good. However, the name you decide to give your company must satisfy the standards of the Companies Registration Office.
– Addresses. A company could have two or even three different addresses, or it could have just one. A company may choose to have office and mailing addresses. An office address is a physical location where meetings are held. In comparison, the company's mail goes to the mailing address. Most companies that adopt the dual address structure are small companies.
– Sign the document. Finally, you have to attach your signature to the incorporation documents through Companies Online Registration Environment (CORE), or you could hire an expert to handle the process.
Opening a Business Bank Account
It is advisable to conduct your research and filter through the banks that would be the most favourable in terms of fees and related matters. To open an account, you may need an array of documents which include forms of ID, a mandate signed by the directors, signature samples of authorised people, a Memorandum of Association (MoA), proof of your company's registration and location, and your incorporation certificate.
Tax Structure
If your company has a director in Ireland, your company is to pay a corporate tax of 12.5% of its profit. You may need to pay other taxes such as Pay Related Social Insurance (PRSI), depending on the company.
There are exceptions, however. Section 486C provides for tax payment relief if specific criteria are fulfilled. They range from the type of trade to the total amount of payable corporation tax.
Hiring Local Employees/ Immigration Options
Ireland is known for its highly educated and impressive workforce. However, it is relatively expensive to hire local employees, and there are employment laws guiding the process, including the average hours employees are allowed to work per week in Ireland. As a resident of an EEA country, you are allowed to employ or be employed without any restrictions.
However, as a person who doesn't belong to an EEA country, the UK, or Switzerland, you need to be offered employment, then apply to obtain a relevant work permit or visa (if it's required in your case). There are various kinds of work permits, one of them being the critical skills employment permit; which is for adept workers in fields where there is a shortage of manpower, in Ireland. Other kinds of work permits include general employment work permits, internship work permits, partner/family work permits, among others.
Ireland work visa, classified under the "D visa", is open to self-employed and high skill work employees. It is advisable to apply three months before going to Ireland and is a long process that requires a lot of documents to prove that you qualify. You will have to fill out a work visa application form, provide an authentic passport, your contract of employment, and several other supporting documents.
If you're interested in moving to Ireland for work, you may easily be overwhelmed by the whole process if you're on your own. With the right help, the whole process is a lot easier.
Ireland is a welcoming country that boasts of being home to over 1,000 successful multinational companies. Why don't you give it a try and add your name to the list of successful companies in Ireland? We can help you Incorporate, Move and Manage your business, taxes, payroll, and more in Ireland. Don’t hesitate and send us an e-mail.
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