Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Ireland: Private Limited Company

General information about the country

The Republic of Ireland is located on the island of Ireland and occupies approximately 80% of the island area. The other 20% of the island belongs to Northern Ireland which is part of the United Kingdom.

The independence of the Republic of Ireland as a separate state was established in 1922 as a result of the Anglo-Irish Treaty being signed with the United Kingdom. Constitutional relations between the two countries were severed completely in 1948 following the adoption of the Republic of Ireland Act.

In 1973 Ireland joined the European Union, and it was considered until around 1980 to be one of the most backward members. However, during the 1980s a number of economic reforms were adopted resulting in strong development of the country. Consequently per capita income in Ireland is currently one of the highest in the world.

The Euro has been the national currency of Ireland since 2002.

Legislation

The legislative system of the Republic of Ireland is based on common law which was inherited from the United Kingdom. The main law of the country is its Constitution which was adopted in 1937.

The legislative power of the state is represented by the Parliament consisting of the President and two chambers, being the Senate and the House of Representatives.

Registration of companies in Ireland is regulated by the Companies Act 1963, which has been supplemented by more than ten times over the recent fifty years.

Corporate characteristics:

Main:
Company typePrivate Limited Company
Corporate legislationCompanies Act 2014
Language of company documentsEnglish
Corporate endingLimited, Ltd.
Authorised capital:
Minimum amountEUR 1 (issued capital)
Standard amountEUR 10,000 (authorized capital)
Standard currencyEUR
Permitted currenciesAny
To be paidIssued shares have to be paid
Shareholders:
Minimum number1
Maximum number99
Publicly accessible recordsYes
Directors:
Minimum number1
Local directorNo, but at least 1 director must be EU resident
StatusOnly physical persons
Publicly accessible recordsYes
Secretary:
Minimum number1
Local secretaryRecommendable
Publicly accessible recordsYes
Reports:
Filing an Annual ReturnYes
Fiscal yearEstablished by the company
Financial StatementsYes
Publicly accessible Financial StatementsYes
AuditorDepending on criteria (see below)
Filing a Tax ReturnYes
Corporate taxation:
On trading income12.5%
On passive income25%
Double Tax Treaty network:Agreements with more than 70 countries

Additional information on taxation

The standard corporate tax rate in Ireland is 12.5%. There is also a higher rate of 25% which is applicable to non-trading income such as rental income.

Apart from a slightly lower corporate tax rate, Ireland is largely a country with a standard tax system. Specific legal provisions of Ireland enable companies to enjoy favourable conditions resulting in a significant number of international companies who have chosen this country as their domicile.

An Irish company may be exempted from the certification of its financial statements by a licensed auditor if two of the following criteria are met in a financial year:

However, even if all of these conditions are met, the financial statements remain subject to audit if they have not been filed with the Companies Registration Office within the deadline being upon expiry of 28 days after the ARD (Annual Return Date). The Annual Return Date is the date by which an Irish company must file with the Registration Office confirmation of extending its existence for the following year.

It is important to note the difference between the term ‘authorised capital’ being the maximum capital that may be issued as specified in the articles of association, and ‘issued capital’ being the capital that was actually issued and paid-up which may consist of only a few shares in practice.

Conclusions

A company in Ireland may serve as a prestigious instrument for reputable business projects as it is a fully-fledged taxpaying company within the European Union, with standard requirements for reporting and, if necessary, audit.

An important criterion is the filing of financial statements by the statutory deadlines. In the event this is delayed, the financial statements have to be certified by a licensed auditor which entails additional costs for the company.

http://lexcorp.com/en/jurisdictions/ireland/ - Ireland: Private Limited Company

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