As a general rule, investors seek to choose a business form that will serve their long-term interests. However, due to a set o factors, businessmen can also opt to change the business form under which they develop their activities into another legal entity that will best represent them at a specific moment. Businessmen who operate through a sole trader, which is suitable for a small business, may change this business form into a general partnership that will help increase their operations on the local market. Our team of consultants in Ireland company formation matters can advise on the procedure involved in this situation.
De-register a sole trader in Ireland
Both sole traders and general partnerships prescribe similar regulations in terms of the investor’s liability. In a sole trader, there is a single investor, who is personally liable for the debts incurred by the company. In the case of a general partnership, similar regulations are imposed, with the difference that this type of company requires at least two partners associated in the business.
The de-registration procedure for a sole trader is rather simple, and one of the main aspects that have to be concluded refers to the tax obligations of the sole proprietorship. It is necessary to verify with the Irish Revenue if the company has any taxes that needs to be paid. At the same time, it is compulsory to verify if the tax returns are up to date. Our team of specialists in company registration in Ireland can advise on the tax requirements available in this case.
Once this procedure is completed, the investor can file the “cessation of business name” form, which is filed with the Companies Registration Office (CRO).
Register a general partnership – a procedure explained by our Ireland company formation experts
Once the sole trader became inactive, the investors can sign the partnership agreement, which can be concluded by at least two partners (who can be natural persons or legal entities). It will also be necessary to register a new trading name with CRO and the tax authorities should be informed on the incorporation. A general partnership has to register for value added tax purposes, but only in the situation in which the annual sales reach a specific threshold, which can vary depending on the business activities of the company.
Businessmen are invited to contact our team of representatives in company formation in Ireland for consultancy services regarding the registration of a general partnership.