Company formation in Ireland

Before deciding to set up a new company in Ireland, read the information below to understand the characteristics of a Private Company Limited by Shares (LTD):

Shareholders: at least one shareholder and maximum of 149.

Director: at least one director (only individual); at least one of the proposed directors must be resident within the European Economic Area (EEA) but if a company has no EEA-resident director, they may enter into a ‘Section 137 Non-Resident Director’s Bond’.

Company Secretary: company must have a separate secretary if it has only one director (a secretary can be one of the directors, a separate individual or a legal entity).

Minimum Share Capital: €1.

Legal Address: must be located in the Republic of Ireland, most official correspondence will be posted to this address.

Liability: the shareholders’ liability in an Irish LTD is typically limited to the amount of shares respectively held by them.

Accounting: an annual return must be filed annually with the Companies Registration Office regardless of whether the company has traded or not.

Companies resident in Ireland must pay CIT on their worldwide profits if these profits include both income and capital gains.

Non-resident companies must also pay CT if:

• they trade through a branch or agency in Ireland;
• they are in receipt of profits or gains in respect of rental property in Ireland.

CIT rates:

• 12.5% for trading income;
• 25% for income from an excepted trade (as defined in part 2 of the Taxes Consolidation Act) and non trading income, for example rental and investment income.

PIT rates:

• income up to €42,000 - 20%;
• balance of income over €42,000 - 40%.

The standard VAT rate in Ireland is 23%.

Reduced VAT rates:

• 13.5% applies to certain goods and services including certain fuels, certain building services, the importation of certain works of art and antiques, the supply of live horses and of greyhounds;
• 9% applies to certain goods and services including newspapers and periodicals, admissions to cinemas, theaters, certain musical performances, museums, art galleries or exhibitions, hairdressing services, short-term hire;
• 0% applies to basic food items;
• 4.8% for livestock;
• 4.8% for farmers.

Double taxation avoidance agreements in Ireland: Albania, Armenia, Australia, Austria, Bahrain, Belarus, Belgium, Bulgaria, Bosnia and Herzegovina, Botswana, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Ghana, Greece, Hong Kong, Hungary, Iceland, India, Israel, Italy, Japan, Kazakhstan, Kenya, Korea, Kuwait, Kosovo, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Montenegro, Morocco, Netherlands, New Zealand, Norway, Pakistan, Panama, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, Vietnam, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Zambia.