One of the main concerns of the businessmen who want to open a company in Ireland is the legal entity under which their business will operate. As a general rule, most of the investors choose to register a limited liability company (LLC), a business form which offers multiple advantages to its founders, as they have limited liability for any debts the company will face in the future. This type of legal entity is the top preference of the local and foreign businessmen starting a company here.
However, certain businessmen prefer to act through a sole proprietorship, which has as a main advantage the fact that the business form benefits from a simpler registration procedure that can be detailed by our team of specialists in company formation in Ireland.
Advantages of an Irish LLC
In an Irish LLC, the company can be set up with 100% foreign ownership, no restrictions being applied in this sense. More importantly, its founders benefit from limited liability against any debts incurred by the company. Foreign businessmen interested in Irish company formation must know that they will be held liable only in the amount of the shares they own in the Irish LLC. At the same time, there are no requirements for the company’s minimum share capital, and the company can have only one director (who does not have to be an Irish citizen). The company’s shareholder can also act as a director. Our team of agents in company formation in Ireland can offer further information.
The following video offers a short presentation on the limited liability company in Ireland and the Irish sole trader:
A LLC in Ireland will be taxed following the applicable tax regulations available for commercial companies. This means that the company will benefit from one of the lowest corporate tax rates (12,5%) applicable at the level of the European Union.
Setting up an Irish sole trader
The sole trader in Ireland does not have a legal personality and, thus, the investor will be held responsible with his or her personal assets for the debts of the company. However, the sole trader represents the simplest way to start a business here, which is also applicable to the dissolution procedure.
Unlike other companies in Ireland, including the LLC, the sole trader is not required to file annual returns with the Companies Registration Office, nor does it need to complete audit procedures.
The decision for setting up a LLC or a sole trader depends on the business activity chosen by the investors, the number of employees the company may need and other corporate aspects. We invite businessmen to contact our team of consultants in company formation in Ireland for tailored advice on the most suitable option.