Tuesday, January 12, 2016
5 Legal Requirements for Starting a Business in Ireland
As a foreign businessman looking to set up a business in Ireland, you should know some important legal and administrative aspects. From choosing the right type of legal structure to obtaining special permits and licenses, the experts at our partner law office in Ireland are ready to assist you in every company formation phase. Our partners in Ireland have identified 5 main legal demands that every businessmen should be aware of when opening a company in Ireland.
1. Choosing a legal form for your business
Any new company in Ireland must be incorporated as a legal structure. The main types of companies available for incorporation in this country are:
- private and public limited companies;
- companies limited by guarantee without a share capital;
- private unlimited companies with a share capital;
- sole proprietorship;
Each company type has its own particularities, this is why you should ask for the help of a legal consultant in Ireland which can help you choose the most suited one for your business objectives.
2. Registering your new company with the responsible Irish authority
After you have chosen the right type of company, the next step is to register it with the Irish Trade Register. For the registration process you will need to submit several documents and complete some important steps such as: choosing an unique name for your company and drafting the Articles of Association. Our partners in Ireland can help you draft the Articles of Association and can handle the entire company registration procedure.
3. Registering your company with the PAYE and PRSI
PAYE (Pay As You Earn) and PRSI (Pay Related Social Insurance) are the Irish systems responsible for the deduction of taxes imposed on employees. Therefore, if you intend to hire personnel at your new company, registering your business with PAYE and PRSI is another legal requirement that you must respect.
4. VAT registration in Ireland
Depending on the amount of your company’s annual revenue, you may be required to register for VAT in Ireland. VAT registration is mandatory for companies that generate the following annual turnovers:
- €37,500 from the sale of services;
- €75,000 from the sale of products.
There are four VAT tax rates in Ireland and depending on the industry sector your company activates in, you could pay a 9% or a 23% VAT rate.
5. Obtaining business permits and licenses in Ireland
Special permits and licenses are required in Ireland depending on the industry you intend to activate in. Some of the domains that require licenses are:
- the gambling sector;
- the food and beverage industry;
- the transportation sector;
- the mass media sector.
If you intend to open a company in one of the sectors mentioned above, you cannot start your business activities without obtaining a special license.
As you can observe there are several legal requirements you must comply with when opening a company in Ireland, but with the right legal help you can make sure that your new business respects all the rules and regulations imposed in this country.