How to set up a company in Ireland

How to set up a company in Ireland. 

Setting up a Company in Ireland is easy with Irish Formations, but there are things you need to know before you get started. This is our essential guide on how to set up a company in Ireland.

Are you going to be a Sole Trader, Partnership, or Limited Company? You need to decide on your structure before you go ahead. Starting as a Sole trader or Partnership is as easy as registering a business name which can be done in a few days. You must reside in Ireland to be a Sole Trader or Partnership. Business names can be set up for limited companies if necessary. You may need to register for tax if you exceed certain tax bands. Ensure your agent can do this with the name registration as you will get more value.

When forming a company:
1. Decide on your limited company name. Research it and make sure it is unique, or it may be rejected. Your name should be researched for availability by your agent, to minimize the chance it will be rejected. Please see our guide to choosing a limited company name. A limited company name needs to be unique on the register. It cannot be the same as another name or phonetically similar as a name on the register. We advise our clients to choose a name they want and we will do the research to check the availability of the name. Our name checking facility will give you an idea if its available on our homepage.

2. Advise us on the sector your company will be active. We will use this information when incorporating your company. Under the new companies act an “Object Clause” is no longer necessary as the new companies act allows for multiple activities.

3. Decide on your company type. Will you be setting up a Private Limited Company with Shares, or a Designated Activity Company? We can advise on company types when you contact us. The most popular type of company to incorporate is an LTD or provide limited company with shares.

4. Where is your registered office located? Every company in Ireland is required to have a registered office address within the state. This cannot be a P.O Box number. Irish Formations provides registered office addresses to thousands of companies and we provide Mail Scanning and processing as standard. We also provide telephony services if required. These services are available on our Virtual Office page. Call answering can always be added to your services at a later stage.

5. Decide on your share structure. You will need to consider Authorised, and Issued share capital as well as values for each. We set up these shares in a way to minimize cost in the future if you wish to issue further shares. Issued share capital is set up and taken from Authorised shares so that they can be distributed to the subscribers. Shareholders can be persons or another company anywhere in the world.

Many existing companies set up subsidiaries in Ireland. This is where the company in Ireland is owned by a foreign company abroad. The share structure is signed for on the constitution by the subscribers.

6. Who are your shareholders going to be and what is the distribution set up for your shares? We will collect this information and incorporate it into your application. The most popular share structure is a simple one. We recommend Authorising 1,000,000 shares. These are nominal only. Then issue 100 shares valued at €1 each. A single share cannot be split so its important to issue the appropriate number of shares if being split equally between three shareholders.

7. Your application is then made by us. All you need to do is sign the pages we give you and the rest is done for you. We engage with the CRO if necessary thereafter. Documents can be signed digitally and emailed back to us. If you are purchasing a Section 137 Bond then for now this must be posted back to us. Section 137 Bonds are applied for first before the company and when we receive the bond documents from the insurance company we put them together with your signed papers and the company is incorporated within 3-5 working days.