Setting up an Ireland subsidiary is an excellent way to expand your business into the European Union (EU). Ireland offers barrier-free access to the EU’s 28 other countries, and you can freely move goods, capital, services, and employees throughout the borders. However, you’ll have to consider various factors before expanding your company, and you’ll need to know every detail of Ireland’s subsidiary laws. When you need an easier way to expand into Ireland, Globalization Partners can help.
How to Set up an Ireland Subsidiary
You should look at two main areas before setting up your Ireland subsidiary — business factors and legal framework.
Ireland has a low corporate tax rate, and IDA requirements ensure your company will succeed and hire new employees in Ireland. Although data protection laws are stricter in Ireland than in the US, the country does not have any legislation to protect trade secrets, confidentiality, and related factors. If that protection is critical to your business or company, expanding to Ireland may not be the best option. The legal framework in Ireland is similar to the US and UK systems but differs from other civil law systems in Europe.
Once you decide if Ireland is the right place for you, you’ll need to settle on a type of business. Most businesses choose a limited liability company for their Ireland subsidiary setup. However, your choice depends on how active you will be, the minimum capital requirements, and how committed you are to Ireland.
With a limited liability company, shareholders liability is limited by the amount of any remaining unpaid shares they hold. The different types of limited liability companies in Ireland include:
- Private company limited by shares
- Designated activity company
- Designated activity company limited by guarantee
- Company limited by guarantee
- Public limited company
The steps differ based on what company you set up, but many businesses decide to set up a limited liability company by following these steps:
- Swear in your founder before a Commissioner for Oaths
- Submit all required documentation with the Companies Registration Office
- Get a company seal
- Register for corporation tax, social insurance, and VAT with the Revenue Commissioners
Ireland Subsidiary Laws
For each step of the subsidiary process, you will encounter different Ireland subsidiary laws. For example, you can register your company at the Companies Registration Office (CRO) three different ways:
- The CORE (Companies Online Registration Environment) registration system allows you to lodge incorporation papers in print and electronic form. You must submit them in CRO pre-approved format.
- With the “Fe Phrainn” system, you’ll need to submit incorporation documents only in print in CRO pre-approved format.
- You can also choose a system in which you’ll send the incorporation documents to the CRO in print form, but the memorandum and articles of association are not in a pre-approved format.
It takes about two to four weeks for the CRO to incorporate your company. If you want to use one of the first two systems, you’ll need to apply to the CRO for an access number to get your documents preapproved in advance. This step can expedite the process if you are looking to set up your Ireland subsidiary quickly.
Benefits of an Ireland Subsidiary
Setting up a subsidiary offers several advantages, especially if you’re establishing a limited liability company. This type of company has limited liability from the parent company, so any litigation or losses will not impact the entire organization. Plus, you can choose to operate your subsidiary under separate rules than the parent company. For example, you could tailor your workplace culture to the overarching culture in Ireland to make the subsidiary a better fit for Irish employees.
What Do You Need?
Before you can set up your Ireland subsidiary, you’ll need to make sure you have all the resources lined up. The process takes a considerable amount of time and capital. You will need to set aside the necessary funds, figure out which employees from the parent company can travel back and forth to Ireland, and dedicate someone in the company to become an expert on Ireland subsidiary laws.
Alternatives to Establishing an Ireland Subsidiary
Instead of investing your hard-earned money and time to establishing a subsidiary, you can outsource your needs to Globalization Partners. We can help you get started sooner by hiring employees through our already-established subsidiary in Ireland. As your Employer of Record, we can walk you through the whole process and offer ongoing support to make sure you stay compliant.
Why Choose Globalization Partners?
When you’re ready to start a subsidiary in Ireland, contact Globalization Partners to learn more about our services.