Becoming a director of a newly formed private limited company - social welfare payment ireland

sbw1992

Registered User
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Hello,

I would like to know if being registered as a company director in a newly registered private limited company would affect my long term unemployment benefits?

I need to know if the company is unsuccessful will I be able to continue with my benefits?

There are 3 directors in the new company and one of them is 100% shareholder which is not me, all 3 of us have decided not to take a salary for at least 3 months of being in business to allow a build up of working capitol so that when we do take a salary the company could still sustain itself.

But if it is not successful after three months we may call it a day and none of us will have made a penny.

Do I need to declare to the social welfare office that I am now a director even though I am not making any additional income?
 
I would think the SW would look at you as now been employed even though you have decided not to take a salary
If you are long term might be an idea to look at the BTWEA
 
But thing is I cant take a salary until the business has money to pay me a salary right?
 
Just because you are not paid doesn't mean you are unemployed, you are a director in the company and are working for said company just not drawing down a salary.
 
is there a certain time period I have to declare it or do I lose my dole straight away?
 
afaik as soon as you start working for your company you have become employed so yes you will loose your dole
look into the BTWEA or other grants that might be available to you
 
"all 3 of us have decided not to take a salary for at least 3 months of being in business". That's your decision, but you are employed, just not remunerated.
 
Directors are listed at company house on public records. After a awhile this will come up on a Google Search of your Name. The exact date the company was Set up etc. If you choose not to in Form S.W Office you could be in trouble eventually. The back to work scheme is good you should look into it.
 
But if it is not successful after three months we may call it a day and none of us will have made a penny.

I know this is a side issue but 3 months is a ridiculously short timeframe on which to judge whether or not a business will ultimately succeed. You will undoubtedly make some mistakes in the early stages, and these will take time to iron out. Unless you really hit the ground running, you will still only be finding your feet in 3 months time. Best of luck with your plans.
 
Just because you are not paid doesn't mean you are unemployed, you are a director in the company and are working for said company just not drawing down a salary.

I don't see the above in such stark terms.

If he has an employment contract with the company then there is clear evidence of employment.

However in the absence of a written employment contract, as he is not a shareholder, he may have no control over the distribution of profits which will be subject to the close company rules if it has undistributed profits from a tax perspective, as well as what ever is in the shareholders agreement.

OP in passing, why not resign as a director as the single director company option is now available so leave it to the 100% shareholder.
As a director you will will have to file loadsa more paperwork and carry additional exposure to fines etc for arrears/ non payment of LPT etc so loadsa potential grief with no return.

You are also bringing your family into the net via the very wide definition of connected persons.

Being a company director is not something to take on at a whim.

I would resign forthwith, you don't need the grief.
 
There are 3 directors in the new company and one of them is 100% shareholder which is not me
Yep find this somewhat strange!! Why are you working in a company where you have no ownership rights? Not a sensible decision in my opinion. 1 party could be putting in most or all of the initial capital required. However this could be recognized by means of a directors loan or other priority agreement.
I have had experience of setting up a company with an unequal shareholding and all is fine until some issue of disagreement arises. You need to be vary careful of what you are getting into and more importantly how you can get out of this should things go wrong. If you are putting your time and efforts into this company you need to have some assurance of a payoff should it work out.
 
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