According to a recent study conducted on companies operating in Ireland
, the insolvency rate
registered in 2017 declined by 15%
. At the level of 2017
, 874 companies
had to start the insolvency procedure
, down by approximately half compared to 2012, when numerous businesses experienced economic difficulties. Our team of specialists in company formation in Ireland
can offer in-depth assistance on the legislation referring to the manner in which insolvency procedures
are carried out here.
What is insolvency ?
is the legal procedure in which a company
enters when it can no longer pay its financial obligations
to its lenders
. Investors interested in opening a company in Ireland
should know that insolvency proceedings
are begun at the moment when the company’s liabilities exceed the amount of debts
of the respective business.
Insolvency for Irish companies in 2017
, the companies
that started the insolvency proceedings in Ireland
were generally represented by creditors’ liquidations
(28%). Insolvencies in Ireland
were also concluded as court liquidations
In terms of the business operations
of the Irish companies
that applied for insolvency
, the highest rate
was registered for businesses operating in the services sector
(approximately one third of all the insolvencies
carried out in 2017
), a large share being represented by the real-estate agents and brokers
. Our team of agents in company registration in Ireland
can advise on the regulations related to these economic sectors.
The other top business sectors were represented by the following:
• construction sector;
• hospitality industry.
5% of the Irish insolvencies derived from businesses operating in the manufacturing industry. It is important to know that the rate of Irish insolvencies registered in 2017 was in line with the averarage rate of the previous five years.
The top regions for insolvency proceedings were the following:
• Leinster region (approximately two thirds of all the insolvencies);
The manner in which corporate insolvenies
are carried out in Ireland
is given by the Companies Act
and the Conveyancing and Law of Property Act
Foreign businessmen can contact our team of consultants in company formation in Ireland
for in-depth advice on the provisions prescribed by the above mentioned laws concerning insolvency proceedings