
One of the main concerns of the businessmen who want to
open a company in Ireland is the
legal entity under which their business will operate. As a general rule, most of the investors choose to
register a limited liability company (LLC), a business form which offers multiple advantages to its founders, as they have
limited liability for any
debts the
company will face in the future. This type of
legal entity is the top preference of the local and foreign businessmen
starting a company here.
Advantages of an Irish LLC
In an
Irish LLC, the
company can be set up with
100% foreign ownership, no restrictions being applied in this sense. More importantly, its
founders benefit from
limited liability against any
debts incurred by the
company. Foreign businessmen interested in
Irish company formation must know that they will be
held liable only in the
amount of the shares they own in the
Irish LLC. At the same time, there are
no requirements for the
company’s minimum share capital, and the
company can have
only one director (who does not have to be an
Irish citizen). The
company’s shareholder can also
act as a director.
Our team of agents in company formation in Ireland can offer further information.
The following video offers a short presentation on the limited liability company in Ireland and the Irish sole trader:
A
LLC in Ireland will be
taxed following the applicable
tax regulations available for
commercial companies. This means that the
company will benefit from one of the
lowest corporate tax rates (12,5%) applicable at the level of the
European Union.
Setting up an Irish sole trader
The
sole trader in Ireland does not have a legal personality and, thus, the
investor will be held responsible with
his or her personal assets for the debts of the company. However, the
sole trader represents the
simplest way to start a business here, which is also applicable to the
dissolution procedure.
Unlike other
companies in Ireland, including the
LLC, the
sole trader is not required to
file annual returns with the
Companies Registration Office, nor does it need to
complete audit procedures.
The
decision for setting up a LLC or a sole trader depends on the business activity chosen by the investors, the
number of employees the
company may need and other corporate aspects. We invite businessmen to
contact our team of consultants in company formation in Ireland for tailored advice on the most suitable option.
Comments
Dean 2018-01-05
If an investor wants to set up a larger business, employing at least 10 employees, I consider that the main option should be represented by the LLC. The sole trader is a suitable option for a small business, in which only 1 to 5 persons are involved, in my opinion.