Features and use of LTD in Ireland
Ireland is a country located in Western Europe. It is rightfully recognized as one of the most important jurisdictions in the world for opening both large companies and SMEs. Ireland provides foreign investors with the most business-friendly legislation and the best reputation in the economic sphere, making the country one of the leaders in attracting foreign investment throughout Europe. This is where the European headquarters of Google, Twitter, Airbnb, Facebook, etc. are located.

Foreign investors prefer the following legal forms in Ireland:
  • Limited Partnership (LP)
    limited liability partnership
  • Private Limited Company
    The most popular and effective option for starting your own business with transparent tax regulations in the country with the developed, stable economic system.
LTD in Ireland is considered to be the local resident regardless of where the company headquarter is located.  Consequently, both residents and managers of branches of foreign companies need to submit financial and tax reports in Ireland, as well as keep accounting records. LTDs in Ireland are taxed as usual, i.e. all profit must be taxed.

As for the names of limited liability companies, they must contain the words Teoranta (Teo) or Limited (Ltd) to indicate the legal form.
It is important to note that the words “standard”, “bank”, “insurance” and “society” in company manes names must not be used. To use them you must obtain a license.
Unlike many other European countries:
  • It is possible to open Ltd in Ireland with any amount of authorized capital
  • There are no restrictions on the nationality of directors and shareholders
  • There is no obligation to hire a secretary
  • There is the right to remotely manage the company (but the director must be an individual)
An undoubted benefit of starting your own business in Ireland is the progressive tax rate used in the country. Thanks to the progressive rate, small and medium-sized businesses have the opportunity to quickly reach the desired profit after the launch and reduce the risk of failure from the start. For example, income of trading and manufacturing companies are taxed at 12.5%; income from mining, foreign trade, profits from dividends and interest are taxed at 25%.

The standard tax rate is 20%. This tax is levied on sources when making payments to residents. Payments of dividends, interest and royalties to non-residents are also subject to the standard 20% tax rate.
Please note that the interest rate for payments to non-residents may vary depending on the terms of the DTT. Please also note that dividend payments to individuals who are residents of the European Union are not taxed.
LTD owners in Ireland have the right to obtain a VAT number for their company in order to reverse tax in the European Union. Obtaining a VAT number is not difficult. The law does not prevent companies from doing this if they comply with all the necessary conditions for doing business.

In standard cases, the VAT rate is 23%.  All goods and services, unless special conditions are established for them under the Value Law Added Tax Consolidation Act 2010, are vatable under this rate. There is a special category of taxpayers producing essential goods, food, as well as suppliers of goods within the European Union, which are entitled to a tax rate of 0%. In addition, a reduced rate applies to purchasing livestock (4.8%), when making real estate transactions (13.5%)
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