Ireland is a very attractive destination for foreign investors wanting to open companies in this country. The facilities offered by the Irish government refer to the numerous types of companies that can be registered here, the taxation system and low corporate rates, as well as on the right to full foreign ownership of businesses registered in Ireland.
Investors interested in opening a company in Irelandshould know that amongst the types of companies available under the Irish legislation, there are also the Irish subsidiaries. The subsidiary is the most popular small or medium-sized type of company foreign investors choose to open and our specialists in company formation in Irelandcan offer assistance for opening this legal structure.
You can observe the main characteristics of an Irish subsidiary in our scheme below:
What is a subsidiary and what the requirements when opening one in Ireland?
The Irish subsidiary is an independent legal entity from the parent company and may have a full foreign ownership. The parent company’s liability will be limited to the share capital invested in the subsidiary, which is what makes this type of company so appealing to foreign businessmen. Subsidiaries in Ireland are treated like any other domestic entities, therefore they will benefit from the same facilities in terms of taxation.
Foreign businessmen who are interested in the procedure of company formation in Ireland under this legal structure should know that the business will be liable to corporate tax rate (applicable at the rate of 12.5%). At the same time, the company is required to file the annual reports on its financial activity.
As a general rule, most of the subsidiaries in Ireland are registered at the Companies Registration Office aslimited liability companies.
The mandatory requirements for the company registration procedure in Ireland under the form of a subsidiary are the following:
•a minimum number of two directors, out of which one should have anIrish citizenship;
•the minimum share capital is approximately 38,000 euros in Ireland and 25% of the amount must be paid upon incorporation;
•the subsidiary must hold a registered office in Ireland;
What are the steps to be followed when establishing an Irish subsidiary?
The first step when opening an Irish subsidiary is to prepare the Memorandum and Articles of Associationof the company. If the shareholder incorporating the subsidiary is a foreign entity, a resolution for the incorporation must also be prepared. Once all the documents are ready they must be submitted with the Companies Registration Office (CRO) in Ireland. After the Commercial Register releases the Certificate of Incorporation of the new subsidiary, the registration for taxation purposes with the local tax office must be completed.
Companies in Ireland operating as subsidiaries will need to register with the Tax Office in which the legal entity set up its operations.
The company will have to register for Value Added Tax (VAT)and corporate tax. At the same time, the subsidiaries which are employing foreign or local workforce will need to register for social security purposes. Such entities are also required to file for VAT returns.
It is also necessary to notarize the documents submitted at CRO. The procedure can be completed at a public notary in Ireland.
The video below shows the main steps to follow when opening a subsidiary in Ireland:
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