
As a general rule, investors seek to choose a
business form that will serve their long-term interests. However, due to a set o factors, businessmen can also
opt to change the business form under which they develop their activities into another
legal entity that will best represent them at a specific moment. Businessmen who operate through a
sole trader, which is suitable for a
small business, may
change this business form into a
general partnership that will help increase their operations on the local market.
Our team of consultants in Ireland company formation matters can advise on the procedure involved in this situation.
De-register a sole trader in Ireland
Both
sole traders and general partnerships prescribe similar regulations in terms of the
investor’s liability. In a
sole trader, there is a
single investor, who is
personally liable for the debts incurred by the
company. In the case of a
general partnership, similar regulations are imposed, with the difference that this
type of company requires
at least two partners associated in the business.
The
de-registration procedure for a
sole trader is rather simple, and one of the main aspects that have to be concluded refers to the
tax obligations of the sole proprietorship. It is necessary to verify with the
Irish Revenue if the
company has any
taxes that needs to be paid. At the same time, it is compulsory to verify if the
tax returns are up to date.
Our team of specialists in company registration in Ireland can advise on the
tax requirements available in this case.
Once this procedure is completed, the investor can file the “cessation of business name” form, which is filed with the Companies Registration Office (CRO).
Register a general partnership - a procedure explained by our Ireland company formation experts
Once the
sole trader became inactive, the investors can
sign the partnership agreement, which can be
concluded by at least two partners (who can be natural persons or legal entities). It will also be necessary to
register a new trading name with
CRO and the
tax authorities should be informed on the
incorporation. A
general partnership has to
register for value added tax purposes, but only in the situation in which the
annual sales reach a specific threshold, which can vary depending on the business activities of the
company.
Businessmen are invited to
contact our team of representatives in company formation in Ireland for consultancy services regarding the
registration of a general partnership.