Due to extremely generous tax provisions, Ireland has always been a favorite tax location for foreign business. While the majority of businesses that benefit in Ireland or larger companies such as Google, Ireland has significant tax benefits for corporations of all shapes and sizes.
The following is a summary of the different types of Corporate Structures and Business Entity Formation Options for Ireland:
Non-Irish Company Conducting Business in Ireland:
Branch: A Branch is when a foreign company registers to conduct business in Ireland. Due to the generous corporate taxation rules it is more common for businesses to form a wholly-owned subsidiary in Ireland as opposed to a branch.
Irish Company Conducting Business in Ireland:
Sole Trader: As in the United States with a sole proprietorship, a sole trader is a common way to start a business in Ireland without the headaches and bureaucracy of forming a corporate or business entity. The owner of a sole trader has unlimited liability and only residence of the Republic of Ireland to register – with some leeway for visa-holders.
Company Limited by Guarantee (CLG): This type of company is generally limited to charities clubs and other management type companies. It requires at least two directors.
Public Limited Company: This is a type of company which does not restrict the number of shareholders, requires two directors and must’ve issued share capital of €25,000. A PLC is generally utilized when it a company needs to be listed on the stock exchange.
Unlimited Company: the unlimited company has become less common since more limited liability companies have become available. The members of the company have unlimited liability and there are three main types these companies – ULC, PULC and PUC. There must be at least two directors but can have unlimited number of members.
Limited Liability Partnerships: The LLP is not a common business formation in Ireland since it requires a general partner who must have full liability for that debts and liabilities of the company.
Company Limited by Shares (LTD): An LTD is one of the newer types of private companies in accordance with the companies act of 2014. The members of an LTD have limited liability in accordance with the LTDs Constitution regarding their respective share. The company may have only one director of the company requests, and there can be up to 149 shareholders – with no requirement to hold an annual general meeting.
Designated Activity Company (DAC): The DAC is also relatively new type of company, which is a limited company which is “limited” by the specific type of business that is set forth in the business’s Constitution.