Company Registration in Ireland- An Overview
Ireland has been a part of the European Union since 1973. This was the time when the UK signed the EU law treaty to become a part of the European Union. Ever since it is a member of the European Union, the country has entered into various bilateral agreements with the EU.
The process of company registration in Ireland is similar to that of the United Kingdom. Several treaties have been entered for the process of company registration in Ireland with the UK. As Ireland is a part of the EU, there are several freedoms which will affect Irish residents.
Such freedoms are the: The freedom of movement of people, the freedom of movement of goods, the freedom of movement of capital and movement of services. Hence due to these freedoms, forming a company in Ireland would be a seamless yet straightforward task for individuals in the EU.
What is the Main Regulatory Authority for Company Registration in Ireland?
The main regulatory authority for Company registration in Ireland is the CRO (Companies Registration Office). As per the CRO, there are different types of entities which carry out business in Ireland. Any applicant would have to secure the appropriate license from the CRO to commence activities in Ireland.
The law which regulates company registration in Ireland is the Companies Act, 2014. All the features of a company such as limited liability and independent entity enjoyed by a company come under the provisions of the above act.
What are the types of Entities under Company Registration in Ireland?
First and foremost, the applicant has to choose and select a suitable business structure for company registration in Ireland. There are different forms of companies that can be registered in Ireland. Hence the applicant has to first choose the appropriate form of business structure.
The following are the types of entities in Ireland:
Any form of entity which is formed with a limited amount of shares is known as a limited company. If the company has the status of limited liability, then the shareholders of the company would not be liable personally for the debts which are owed by the company. Hence the liability is only to a specific amount of unpaid shares which are held by the shareholders of the company. The following are the types of limited companies present in Ireland:
Private Limited Company (LTD Company)
Here such form of company has maximum number of members. The maximum limit of members or shareholders to form this company is 149. The liability of the members of such company is only limited to a particular amount of unpaid capital of the shareholders of the company. A limited company can have only one director, if it so wishes to operate. The objects of such a company are to be present in the Memorandum of Association (MOA). Part 14 of the Companies Act, 2014 speaks about this form of company.
- Designated Activity Company (DAC) Limited by shares- Such activities of the company have to be carried out and stated in the objects clause which is under the MOA. Part 16 of the Companies Act, 2014 refers to DAC. The liability of the DAC is limited only to a particular amount of unpaid capital.
- DAC Limited by Guarantee- The liability of the members is unpaid on the shares they hold, and secondly, the amount they have undertaken to contribute to the assets of the company, in the event that it is wound up. Such a company has to have minimum two directors to carry out the duties of the company.
- CLG (Company Limited by Guarantee) - In such a company the members liability is to the amount of contribution required for the company.
- Public Limited Company- Such a company is allowed to list its shares in any recognised public stock exchange. The minimum share capital required for the formation of a public limited company is 25,000 Euros.
- Single Member Company- Such a company is formed only by a sole member under the Companies Act, 2014.
For an unlimited company, the liability of the shareholders or members is unlimited.
Benefits of Company Registration in Ireland
The following benefits are present for
Ease of Registration
Any applicant going for the process of company registration in Ireland can take different form of benefits offered by the CRO. The process to establish or incorporate a company in Ireland is seamless and straightforward.
Member of the European Union
Ireland is the part of the European Union. This makes it easy to conduct business in the country. Citizens from the EU can secure specific amount of benefits of conducting business in Ireland.
Reputed and Dynamic Business Environment
Dublin is the financial and technology capital of Ireland. There are lot of opportunities for companies to grow and prosper in Dublin. Apart from this, there are other cities which an applicant can invest in. Such cities include Cork which is a prominent business hub in Ireland. The region of Northern Ireland belongs to the UK. Republic of Ireland belongs to Ireland. Hence there is ease of process for carrying out transactions between these two
Eligibility Criteria for Company Registration in Ireland
The following criterion has to be sufficed for any company being registered in Ireland:
- Company Name- There is an online process and procedure for reserving the name of the company. First and foremost the applicant has to ensure that the name of the company is reserved as per the requirements of the Companies Act, 2014. For this the company would have to look into the search registry for the availability of the name.
- Beneficial Ownership- Under EU Law Article 30(1) speaks about the Anti- Money Laundering Directive to ensure all EU states comply with the requirements of the directive. With respect to the directives all companies that have a beneficial owner are supposed to record the same in the Registrar of Beneficial Ownership of Companies and Industrial and Provident Society. This society or institute which is formed in Ireland is the Registrar of Beneficial Ownership.
- Registered Place of Business- For all forms of correspondence, the company must have a physical place of business. The company can also have a Registered Office in care of an authorised agent. As per section 51 of the Companies Act, 2014 all documents which are sent to the registered office by the CRO have to be deemed to be sent to the office.
- Activity in the State- The Company which is formed in Ireland has to carry out any form of activity which is regulated by the state.
- Officers of the Company- The company must maintain a register of officers to comply with the requirements of the Companies Act, 2014. Every company must have minimum of one company secretary and two directors. The director must be above the age of 18 years and a resident from a member of the European Economic Area.
Procedure for Company Registration in Ireland
Registration- There are three types of registration which can be utilised by the applicant for the process of company registration in Ireland. The following are the schemes related to registration for company registration in Ireland:
- Ordinary Registration- Usually the timeline for ordinary registration is about 15 working days. However the guarantee of the time line is not specific.
- Fé Phráinn Registration- This type of registration occurs within 10 days of submitting the application.
- Online A1 Registration- This type of registration is known as the fast track system related to registration and takes usually 5 working days or business days.
First and foremost the applicant has to select the mode and method of registration.
Reserve Company Name- Such a service allows the applicant to reserve the name of the company. Such process is present in the following website https://www.cro.ie/en-ie/Services/Reserve-Company-Name . When an applicant wants to register with the system of core, such registration is free of cost. An application for reserving the name of the company is 25.00 Euros. However such name can be reserved for the period of 28 days. The application fee for reservation of name for company registration in Ireland can be carried out through the system through credit or through the account online.
Submit Company Documents- The applicant has to ensure to submit the company documents to the CRO, along with the application fee. The Form A1 along with the constitution of the company must be submitted. A private limited company by shares (LTD Company) has only one document that is the MOA. Articles of Association would contain the information related to the bye-laws of the company. In Form A1, the company would have to submit documents related to the company, which includes the name of the company and other information related to the activities which are conducted by the business of the company. With this a declaration has to also be submitted by the company. The following link has to be utilised http://www.cro.ie/Publications/Company-Forms. For using the system related to core, the applicant can utilise the existing system related to the company formation process in Ireland (https://core.cro.ie/ ). When the authority feels that there are no irregularities with the application, the certificate of registration will be granted.
Post Registration Requirements- If the company has changed any of its business then the same must be notified to the CRO.
Documents Required for Company Registration in Ireland
- Form A1
- Memorandum of Association and Articles of Association
- Constitution of the Company
- Residential Address Proof of the Directors of the company
- Letter or Status of the company
- ID Proof of the Director.