What to Consider When Registering a Company in Ireland?
For an insight into company formation in Ireland, we caught up with Mikhail Yegorov - Managing Partner of Ireland-based Fidutrust Formations Ltd and Switzerland-based Apex Fidutrust AG.
When registering a company in Ireland, what are the most important legal considerations that should be taken into account?
When you start a Limited Company in Ireland you need to guarantee that you meet all the legal requirements. Together with selecting a distinguishing name for your company, the things that need to be taken into consideration include: the company needs to have at least one director who’s a resident of the EEA as otherwise, a non-EEA resident bond needs to be provided; have a secretary; have at least one shareholder; have a registered office address and you’d also need to decide on how many shares will be allocated and issued. After your company is registered, the main on-going compliance requirements are as follows: All companies must submit and file an annual return every year, together with abridged accounts to the Registrar of Companies. Failure to do so will result in substantial penalty fees and possible strike-off proceedings, as well as loss of the audit exemption for two years if applicable. The first Annual Return is due six months after incorporation (no accounts required). The only exception to this are Unlimited Companies in certain circumstances.
Every company whose turnover or group turnover exceeds €8.8 million must prepare and file audited accounts. Most registered charities (Companies Limited by Guarantee) must also file audited accounts.
A Corporation Tax Return must be made every year and if the company is VAT registered, VAT returns must be made every two months.
Ireland has one of the lowest corporate tax rates in the world at 12.5%.
How can non-residents avoid difficulties when attempting a company formation in Ireland? Why is it important to contact a specialist?
Getting the correct advice from a specialist is a must when selecting the correct structure of the company to be able to avail of the Irish preferential corporate tax regime. The type of structure you choose depends on the kind of business you are running, with whom you will be doing business and your attitude to risk. It is advisable to get the advice of a company formation specialist like Fidutrust Formations Ltd when considering the structure for your business. Another important aspect is whether the beneficial owner is an EU resident or not. If a non-EU resident wishes to set up a company in Ireland, they need to have an EU resident director in the structure. If they cannot provide one, a non-resident director bond must be put in place. Many of our non-EEA clients ask what a non-resident bond is and why it is required and the explanation is quite simple – it ensures the company for a sum of €25,400 and its purpose is to make sure that it completes the required submissions with the Revenue Commissioners and the Companies Registration Office.
Our company could assist in obtaining this bond or could provide a nominee director to comply with the regulation of having an EU resident in the structure.
Why should people consider registering their company in Ireland? What makes the country attractive?
Ireland is attractive because it has one of the lowest corporate tax rates in the world at 12.5%. Additionally, a thriving research, development and investment sector, with strong government support for productive collaboration between industry and academia, is present in Ireland too. Other benefits are a strong legal framework for development, exploitation and protection of intellectual property rights; a strategic location with easy access to the European, Middle-East and Africa (EMEA) region; excellent IT skills and infrastructure; and an advanced telecommunications infrastructure, with state-of-the-art optical networks and international connectivity. Ireland also offers strategic clusters of leading global companies in life sciences, ICT, engineering, services, digital media, and consumer brands.
Ireland came 11th (out of 82 countries) in the recent Business Environment Ranking of the Economist Intelligence Unit’s ‘Most attractive business locations in the world’ ranking. The country is politically stable, has a respected regulatory regime, is considered to be a low bureaucracy and offers a low-tax environment that is very supportive of entrepreneurs. The World Bank’s ‘Doing business’ report rates Ireland as the easiest place in the European Union to start a business due to having the most business-friendly tax regime out of any country in Europe or the Americas.
Tell us about the tax-efficient structures that are available to businesses in Ireland?
One of the most beneficial elements available in Ireland is a range of specialist tax vehicles. These entities are set up to take advantage of beneficial tax rates and relaxed reporting standards, allowing companies to avoid certain public declarations of funds and profits. These vehicles known as Qualifying Investor Alternative Investment Funds (QIAIF) can come in five different formats, with the Irish Collective Asset-management Vehicle (ICAV).
The World Bank’s ‘Doing business’ report rates Ireland as the easiest place in the European Union to start a business due to having the most business-friendly tax regime out of any country in Europe or the Americas.
Qualifying Investor Alternative Investment Funds (QIAIF) were created to counteract some of the bad press previous tax saving schemes in Ireland had obtained and to compete with other offshore jurisdictions.
Some QIAIF vehicles select the tax transparent Limited Partnership type. However, since their introduction in 2014, the Irish Collective Asset-management Vehicle (ICAV) has been the preferred choice for both US-based or linked investors, outperforming options in several other jurisdictions.
Would an investment into a new company formation in Ireland guarantee a residency permit for non-EEA nationals?
There are two ways in which non-EEA nationals can invest or start a business in Ireland and receive a residency permit or a business visa. The first one is called an Immigrant Investment Program that provides a range of investment options which allows approved non-EEA investors and their immediate family to enter Ireland on multi-entry visas and remain here for up to five years with the possibility of ongoing renewal. The client would have to have a net worth of at least €2MM and be able to invest in one of the categories under this scheme.
The second one is called a Startup Entrepreneur Program and it allows a non-EEA national with a high-potential startup and minimum funding of €75,000 to come and set up a business in Ireland. If you are enrolled in this program, you will receive a 12-month business visa that could be extended after it expires. We would be happy to provide more information on these programs to anyone interested in finding out more
Do you provide assistance with business bank account openings in Ireland or other jurisdictions?
We do and this is our main specialisation. There is a huge demand on the market for bank account opening services, given recent issues in Latvia and Cyprus, and we are proud to be one of the leading agencies in Europe that provide operational, holding, crypto and transactional business bank accounts in the major EU, US, Asian, Swiss and off-shore banks for companies domiciled all over the world. We can open bank accounts for all types of legal entity structures and for most countries of residence of the beneficial owners.
About Fidutrust Formations Ltd & Apex Fidutrust AG
Fidutrust Formations Ltd provides assistance on a wide range of consulting and legal services in Ireland in the field of registration and administration of companies, partnerships, trusts and funds as well as consultancy in Irish civil and business law. Apex Fidutrust AG is a fiduciary and financial intermediary firm providing corporate, banking, asset and wealth management services in Switzerland.
Fidutrust Formations Ltd
19 Charnwood Court, Clonsilla, Dublin 15
Contact number: +353 1 559 39 08
Mob: + 353 86 896 82 79