So you want to open a company in Ireland? You’ve made the right choice. With over 60 companies opened every day, Ireland is one of the hottest start-up centres in the world.
Though it may seem complicated at first, opening a company in Ireland can be done in a few simple steps. If you know what you’re doing. To help you out, I made this guide that covers everything you need to know to open a company in this exciting country.
How to Register a Company
Every newly opened company in Ireland must be registered at the Company Registration Office (CRO). First, you have to register the business name of your company. You can do that by filling out a form online or in person.
It’s important to note that registering online is cheaper, as it only costs €20, in comparison to €40 you have to pay for a paper registration. Since there can be only one unique business name for each company in Ireland, you can choose to reserve a name in advance. Keep in mind, however, that the reservation will cost you additional €25.
How much paperwork you will need for registration, depends on the type of company you are registering. A private limited company, or LTD, for example, only requires one additional document (the constitution), while other types of companies require submitting two documents: the Memorandum of Association and Articles of Association.
The CRO will enlist your company into its register and issue you a certificate within 3 weeks of submitting the paperwork. Also, it’s important to note that certificates are issued by email which is why you have to check your mail regularly, including your spam and junk folders.
Which Taxes You’ll Have to Pay
Every company in Ireland has to file an annual return at the CRO. This must be done every year within 28 days from the company’s annual return date. The annual return date is different for every company, and when you register a company you will be able to check yours on the CRO website.
The annual return date for a newly founded company is six months from its incorporation. A good thing about having a company in Ireland is the fact that the CRO will remind you about your annual return date in advance, to make sure you do not forget your obligation.
When you are filling an annual return you will have to attach a recent copy of the balance sheet, profit and loss account, director’s report and auditor’s report.
How to Find an Office
Every newly opened company has to have a registered office in the country. When it comes to choosing the location for your office, it boils down to two options. First, to choose a nice space in a smaller town in Ireland and save yourself some money. And second, to go for a really high-end location in the capital, Dublin. While this can be a much more expensive option, the benefits of having a great location can be worth it. Having an office at an exclusive location adds prestige to a company, and can help you attract clients that can’t be bothered going to Cork. This is particularly important for businesses that require face-to-face meetings with potential clients.
Having said that, another thing to consider is the type of space you’ll need. If you are running a larger company with dozens of employees, you’re going to need a place of your own. That means getting a traditional lease on an office and paying monthly rent. Though popular, this can be a pricey solution as you will have to cover the costs of utilities and equip the office yourself.
Another popular choice is renting a desk at a coworking space. Coworking offices can not only lower the costs of renting, but they can also connect you with people similar to yourself. On the other hand, there are privacy concerns you should think of when renting a coworking desk.
Choose a Bank Account
Legally speaking, sole traders and limited companies are not obligated to have a business bank account in Ireland. However, having a separate account for your business transactions is highly recommended since separating your business and private accounts will ensure that your bookkeeping is easy and accurate.
Some banks have special accounts for start-ups that offer a variety of perks such as free bank transfers between different countries in Europe. There are also special low-cost accounts designed for sole traders and freelancers. Business accounts for e-commerce companies make money transfers between different bank accounts more easily.
Naturally, there’s a variety of business accounts, suitable for more mature businesses as well.
Opening a company in Ireland is not as complicated as you may think. All you need is a good business idea, a few forms, an office space, and an appropriate business account. Follow this guide and you’ll certainly get everything right.