Starting your own business and forming a new company can be the most exciting events in your adult life, but you must get it right from the start. You must understand the 6 key elements of setting up a company in Ireland.
Yes, you can do it yourself but that can turn out to be costly or time-consuming to change in the long term if it is not done correctly.
If you take the DIY route, you have to know what you are doing or it can be a stressful exercise. We are specialists in company formations because it takes specialised skills to do it correctly, quickly, and in a stress-free way for our clients.
That is one of the benefits of outsourcing your finance department. You always have a team of experts at hand.
Which type of company is right for me?
We said at the beginning of this post, that getting it right from the start is important and that applies especially to deciding which type of company you are going to form. Are you setting up as a limited company or a sole trader? There are advantages and disadvantages to both. Read our blog on this subject here.
At aperio, we know that this decision is huge and it is why our first appointment is free. Book an appointment here.
What is a limited company?
The definition of a Limited Company (Ltd) is ‘A Private Company Limited by Shares and is the most common business type in Ireland.
Because it is limited by shares, it means that company directors and shareholders are only liable for the amount they have invested in the business.
The company is a separate legal entity that can enter into contracts, take out business loans, or be sued.
There are more compliance requirements for companies in Ireland than for a sole trader and hence why we like to have a consultation before deciding which suits your needs best.
Can a company be run by one director?
The simple answer is yes, but you will need to have a company secretary as well who does not need to be a company director.
How much does it cost to form a company?
The cost of setting up a company in Ireland can vary depending on the complexity of the company set up but there are certain fixed costs whether you are trying to keep the cost down by doing it yourself or whether you have an accounting firm such as aperio do it for you.
The CRO will require the following.
Company registration application (called the A1 Form) – €50
This is the fee for filing a new company registration in Ireland.
Company seal – €75+VAT which is a once-off fee. Every limited company in Ireland is required to have a company seal and should be purchased after the company has become incorporated. This seal has your company name and number.
How to set up a limited company
Appoint a director and secretary
The first two formalities that have to be completed are to appoint at least one company director and the company secretary.
The director is responsible for managing the company on behalf of the company’s shareholders. There must be at least one director based in Ireland otherwise a non-EEA resident bond is required.
You also need a separate company secretary whose main job is to take care of annual filings. Failure to comply with this requirement can incur fines for the company.
Have at least one company shareholder
The shareholders are the owners of the company. It is usually at the start-up stage that the director and/or secretary are company shareholders.
How many shares will be in the company?
The division of shares determines the legal ownership of the company and how much each shareholder owns. More shares can be issued after the company has been registered.
A company can issue either authorised shares (the total number you issue now or an issue in the future) or issued shares (the number that has been bought and paid for by shareholders).
Register your office and business address
The registered office is the legal, physical address of your office and can differ from your business address which is where all legal and official correspondence from CRO or revenue.ie will be sent.
We are happy to help supply a business address for our clients where the need arises.
Decide on a company name
This can be a tricky part of the company set up because the CRO has strict guidelines on company names. It must be distinguishable from other names already registered in Ireland.
Fill and sign incorporation documents
This can be done by you online via the Companies Online Registration Environment (CORE) or we can do it as it is an area our company specialises in.
All directors and shareholders in the company must provide a legal form of identification such as a passport.
Can I set up the company myself?
Yes, you can. You can do it through CORE but be aware that if you haven’t done one before, some of the requirements may appear confusing.
While you can do it yourself, it is a more efficient use of time to get somebody professional. Our staff are using the CORE system daily and are familiar with all its requirements.
Book A Free Consultation
Are you looking for professional help?
aperio is a Cork-based outsourced accounting and consulting company. We can take care of all your company formation, bookkeeping, management accounting, and financial compliance. We are also experts in financial project work such as grant applications. Book a FREE Consultation today.