Are you considering registering a limited company in Ireland, but you’re not a resident? Ireland’s favourable business environment and strategic location have made it an attractive destination for entrepreneurs worldwide. Whether you’re planning to tap into the European market or simply want to benefit from Ireland’s business-friendly policies, registering a limited company in Ireland as a non-resident can be a smart move.
At Around Finance, we understand that managing the process of setting up a limited company in Ireland can seem overwhelming, especially if you’re not familiar with the local regulations. That’s why we’ve put together this comprehensive guide to help you understand the ins and outs of registering a limited company as a non-resident.
In this post, we’ll walk you through the entire process, from choosing your business structure to understanding the costs involved. We’ll also cover important topics like registering a company limited by guarantee and whether you can use your home address for your business registration.
Why Choose Ireland?
Ireland offers a compelling package for entrepreneurs. Here are just a few reasons why registering a limited company in Ireland as a non-resident could be the best decision of your life:
- Low Corporate Tax Rate: Ireland boasts one of the lowest corporation tax rates in Europe, currently sitting at a competitive 12.5%. This translates to significant savings for your business, allowing you to reinvest profits and fuel further growth.
- Thriving Business Ecosystem: Ireland has a well-established business infrastructure with excellent support networks for startups and SMEs. From government initiatives to industry associations, you’ll find an abundance of resources to help your business flourish.
- Strategic Location: Ireland offers easy access to the vast European market. Strong ties with the US and the UK make it a prime location for international businesses.
- Talented Workforce: Ireland is home to a highly skilled and educated workforce. You’ll have access to a pool of talented individuals ready to contribute to your company’s success.
- English Speaking: Post-Brexit, Ireland is the last native English-speaking country in Europe.
Steps To Register A Limited Company In Ireland
Here’s a breakdown of the key steps:
1. Choose Your Business Structure
The first step involves selecting the most suitable business structure for your needs. While there are several options available, registering a limited company is the most common choice for non-resident entrepreneurs. This structure offers several benefits, including:
- Limited Liability: Your personal assets are protected from business debts. This means that if your company faces financial difficulties, your creditors can only claim against the company’s assets, not your own personal wealth.
2. Appoint Directors And Shareholders
Every limited company requires at least one director and one shareholder. While you can act as both the director and shareholder yourself, there’s a crucial point to consider for non-residents:
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- Resident Director Requirement: In most cases, at least one of your directors needs to be a resident of the European Economic Area (EEA). This requirement makes sure that your company has a local presence and can be contacted by authorities if necessary. Around Finance can help you manage this requirement by connecting you with qualified resident directors if needed.
- While it’s generally required for Irish companies to have at least one EU-resident director, there’s an exception if you don’t: you can register a company without one if you obtain a Sec 137 bond.
What Is A Sec 137 Bond?
A Sec 137 bond is a financial guarantee from an insurance company. It acts as a security, ensuring that the company will pay:
- Fines imposed by the Registrar of Companies for breaches of the Companies Act 2014.
- Fines related to tax offences under the Taxes Consolidation Act 1997 (sections 1078, 1071, and 1073).
- The bond must be worth €25,000 (not the cost of the bond).
- It’s valid for two years.
Important Note:
Remember that not having an EU-resident director is a criminal offence. If you choose to use a Sec 137 bond as an alternative, make sure you comply with all other legal requirements for registering and operating an Irish company.
3. Choose A Company Name
Get creative and choose a catchy name that reflects your brand and resonates with your target audience. Remember to check the availability of your chosen name with the Companies Registration Office (CRO) before proceeding.
4. Prepare The Necessary Documents
To register your limited company, you’ll need to submit a set of documents to the CRO. These typically include:
- A completed application form
- The company constitution (outlining the rules and regulations governing the company)
- KYC (Know Your Customer) documents for directors and shareholders
- Proof of registered office address
5. Register Your Company
Once you’ve gathered the necessary documents, you can submit them online or by post to the CRO. The processing time usually takes around 3-4 working days.
6. Apply For Tax Registration
After successful registration with the CRO, you’ll need to register your company with the Revenue Commissioners for tax purposes. This will allow you to get a Tax Reference Number (TRN), which is crucial for filing tax returns and paying any taxes owed.
The Cost Of Setting Up
So, how much does it cost to register a limited company in Ireland as a non-resident? Here’s a breakdown of the potential costs involved:
CRO Registration Fee: Company set-up fees are around €295 ex vat. Â
Professional Fees: You may choose to get an accountant or legal firm to assist you with the registration process. Their fees will vary depending on the services provided. Around Finance offers competitive rates for company registration and can guide you through the entire process seamlessly.
Registered Office Address: While you can use your home address as a registered office, it’s generally recommended to use a professional business address. This can range from €150 to €500 per year, depending on the service provider.
Bank Account: Opening a business bank account is essential for managing your company’s finances. Bank fees vary, so it’s important to compare options and choose a bank that suits your needs.
Additional Costs
- Company Seal: While not mandatory, a company seal can add a touch of formality to your business documents. The cost typically ranges from €20 to €50.
- VAT Registration: If your company’s annual turnover exceeds the VAT threshold (Services €37,500, Product €75,000), you’ll need to register for VAT. This involves additional administrative costs and compliance requirements.
Additional Considerations
- Non-EEA Director Bond: If you are a non-resident director, you will likely need to provide a Section 137 Bond, which can cost around €2,475.
- Verified Identity Number (VIF): Non-resident directors may also require a VIF, which has an application fee.
Remember: It’s crucial to consult with a professional advisor to understand the full cost implications of setting up a limited company in Ireland, especially if you are a non-resident. These are just estimated costs, and the actual expenses may vary depending on your specific circumstances.
Tax Registration For Irish Limited Companies
Incorporating a Limited Company in Ireland is typically straightforward, especially if you have at least one Irish or EU-based director. However, tax registration can present some challenges.
Corporation Tax (CT)
By default, all companies registered in Ireland are assumed to be taxable in Ireland for Corporation Tax (CT) purposes. From 1st January 2021, a company is considered a tax resident in Ireland unless it qualifies as a tax resident in another country under a Double Taxation Agreement (DTA). That said, this does not prevent Revenue from reviewing the company’s tax status. In practice, Revenue will closely examine whether the Limited company should be taxed in Ireland.
VAT Registration
Since January 2024, Revenue has significantly tightened its approach to VAT registration. The key types of VAT registration to be aware of include:
- Domestic Irish VAT
- European VAT
- Postponed VAT on imports to the EU
For each VAT registration, Revenue typically requires a clear paper trail that justifies the need for the registration.
Additionally, Revenue will assess whether the Limited company is effectively operating as an Irish business for VAT purposes. This involves a thorough understanding of where the business’s resources are located. In most cases, unless there is a physical office in Ireland with staff residing in the country, Revenue will scrutinise whether the company should be VAT-registered in Ireland. The requirements may vary depending on whether the business is providing services or selling products.
Special Considerations For Non-Residents
Setting up a limited company in Ireland as a non-resident comes with some unique considerations. Let’s look at some of the key factors you need to be aware of:
Visa Requirements
While you don’t need to be an Irish resident to own a company in Ireland, if you plan to live and work in Ireland to run your business, you’ll need to comply with Irish immigration laws.
- EU/EEA/Swiss citizens: You have the right to live and work in Ireland without a visa.
- Non-EU/EEA/Swiss citizens: You may need a visa or work permit. The type of visa required depends on a few factors, including the nature of your business and how long you plan to stay in Ireland.
It’s important to sort out your immigration status before you start operating your business in Ireland. Failure to do so could result in legal complications.
Tax Implications
Ireland’s tax system is complex, and as a non-resident company owner, you’ll need to stay on top of both Irish and your home country’s tax laws:
- Corporate Tax: Ireland’s corporate tax rate of 12.5% on trading income is one of the lowest in Europe, making it attractive for many businesses.
- Personal Tax: If you move to Ireland and become a tax resident in Ireland, you’ll be subject to Irish income tax on your worldwide income.
- Double Taxation Agreements: Ireland has agreements with many countries to prevent double taxation. Understanding these can help you optimise your tax position.
While this guide provides a comprehensive overview, every business situation is unique. It’s always recommended that you seek professional advice to make sure that your company is set up correctly and in compliance with all relevant laws and regulations.Â
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At Around Finance, we specialise in helping entrepreneurs like you manage the process of setting up and running a business in Ireland. Our team of experts can guide you through every step of the company registration process, help you understand your tax obligations, and provide ongoing support to ensure your business thrives. Contact Around Finance today, and let us help you turn your business vision into reality.
FAQ
No, you can set up a company remotely. However, you’ll need to appoint a resident director.
The registration process typically takes around 3-4 working days.
A limited company has shareholders, while a company limited by guarantee has members who guarantee a certain amount
If you plan to live and work in Ireland, you may need a visa depending on your nationality. EU/EEA/Swiss citizens don’t need a visa.
The standard corporate tax rate for trading income in Ireland is 12.5%, which is one of the lowest in Europe.
Company names must be in either English or Irish. If you want to use another language, you’ll need to provide a certified English or Irish translation.
Still got questions? Let us know what you’re looking for.
