If you want to expand your business by opening a subsidiary in Ireland, our specialists can help you. Discover below when this business form is recommended and what its registration entails.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Foreign country’s legislation (Irish Company Law) |
Best used for | – trading; – commercial; – other types of activities. |
Minimum share capital (YES/NO) | EUR 25,000 if the form used to set up the subsidiary is a public limited liability company. |
| Time frame for the incorporation (approx.) | Approx. 3 business days |
| Documents to be filed by parent company | – application form; – information about the parent company’s operations; – proof of legal address; – bank account number (issued by a local bank). |
| Management (Local/Foreign) | A local manager must be appointed; the person must be an Irish citizen. |
| Legal representative required (YES/NO) | Yes, a local representative must be appointed. |
| Local bank account (YES/NO) | Yes, this is a mandatory condition to open an Irish subsidiary. |
| Independence from the parent company | The subsidiary is a fully independent business form. |
| Liability of the parent company | The parent company is exempt from any liability in connection to its subsidiary(ies). |
| Corporate tax rate | 12.5% |
| Annual accounts filing requirements | Tax returns must be filed no later than 9 months from the end of the financial year. |
| Possibility of hiring local staff (YES/NO) | Yes, a subsidiary can operate through a local workforce. |
| Travel requirements for incorporating a subsidiary (YES/NO) | No, there is no need to travel to Ireland to incorporate a subsidiary. |
| Double tax treaty access (YES/NO) | Yes, Ireland has 76 double tax treaties, out of which 74 are enforced. |
Table of Contents
What businesses can expand their operations through subsidiaries in Ireland?
The subsidiary is a suitable option for both local and foreign companies.
What are the main features of an Irish subsidiary?
The Irish subsidiary is an independent legal entity from the parent company, which can have full foreign ownership. The parent company’s liability will be limited to the share capital invested in the subsidiary, which is what makes this type of company so appealing to foreign businessmen.
Subsidiaries in Ireland benefit from the same tax treatment as it is the case of Irish based companies, which means that they can obtain the same tax deductions and similar benefits that are applicable to any domestic business.
What are the legal forms to open a subsidiary in Ireland?
You can choose between:
- the private limited liability company;
- the joint stock/public limited liability company.
NOTE! The private limited liability company is the preferred option of foreign investors we have worked with so far.
How much does it cost to open a subsidiary in Ireland?
The government fee is EUR 75. Apart from this, we can assist with:
- the due diligence requirements for EUR 170;
- the application for a Verification Identity Number for non-resident directors for EUR 75;
- the application for the corporate tax for a fee of EUR 175;
- the Annual Return filing for the first year of activity for EUR 125.
Additionally, we offer a local address for EUR 240 per month and company secretary services for EUR 295 per year.
Here is also an infographic on this business form:
What are the types of subsidiaries I can open in Ireland?
Depending on the level of control you want to exercise over the Irish company, you can establish:
- a wholly-owned subsidiary;
- a partially-owned entity;
- a direct subsidiary, which is often used by holding companies owning the majority of shares in the subsidiary directly;
- the indirect subsidiary.
What are the steps to register a subsidiary in Ireland?
The incorporation of a subsidiary is the same as setting up a company in Ireland by a local investor and must respect the requirements of the Company Act. From this point of view, here are the steps to complete:
- choosing a trading name and reserving it with the Companies Registration Office (CRO);
- setting up a bank account for the deposit of the share capital and future financial transactions of the company;
- appointing company officers (director and secretary);
- drafting the incorporation documents and filing them with the CRO;
- obtaining the tax identification number;
- filing for other business permits (if required).
Additionally, an Irish subsidiary can also apply for a VAT number during the incorporation stage.
What documents do I need to prepare to establish a subsidiary in Ireland?
The following:
- Form A1, which is the registration form issued by the Companies Register;
- the Articles of Association of the parent company;
- proof of a legal address in Ireland (we can offer virtual office services for the starting price of EUR 240/year);
- details of the director and secretary.
NOTE: Considering the subsidiary is a domestic company, it must have a resident director and secretary, hence the requirements to provide their details. We can supply nominee services in this sense, for you to be able to complete the registration process as soon as possible.
Our experts in Irish company formation matters created the video below, which shows the main steps to follow when opening a subsidiary in Ireland:
How long does it take to register a subsidiary in Ireland?
Around one week, excluding the specific license procedure.
How is a subsidiary company taxed in Ireland?
Opening a subsidiary in Ireland implies paying the corporate tax on its entire profits, which can be quite beneficial. The standard rate of this tax in Ireland is 12.5%, which is one of the lowest in Europe, so it is quite advantageous for a foreign entity to establish its headquarters through a subsidiary entity in this country.
The Irish Revenue Office requires preliminary taxes to be paid in:
- 2 instalments for large companies;
- one instalment for small enterprises.
Apart from the income tax, the subsidiary is also required to register for social security and pay the related contributions when hiring employees.
In case you need assistance with setting up a subsidiary through a limited liability company in Thailand, our partners from ThaiCompanyFormation.com can help you.
Investors can contact our representatives in company formation in Ireland for information related to company registration under a subsidiary and for other details related to the taxes applied to companies.