Registering a company

D

DublinGuy_

Registered User
Messages
19
Can someone explain to me the process of registering a company in Ireland and also what documents will be required expenditure involved , time taken etc.
I am one individual person who wants to be the director of this company.
Also,
i) which type of company should I register, I am looking for a company under which I can find work online , do share trading and also get job as a contractor.
ii) Can a do a job for any other company as an employee while I also have registered a company.
 
Dublin Guy

I say keep it simple. Form a simple company Limited by Shares with one or two directors. You will also need a company Secretary.
And yes you can also keep working as a PAYE individual.

Best to get an accountant to do this for you. If you need any assistance, I'm glad to help.
 
Hi

I also am interested in this

The question I have is can a PLC buy shares in the stock market using company funds, thereby receiving an income via dividends, and then processing those funds back through the PLC?
 
Dan The Man said:
Hi

I also am interested in this

The question I have is can a PLC buy shares in the stock market using company funds, thereby receiving an income via dividends, and then processing those funds back through the PLC?
Click to expand...
By PLC I presume you mean a private limited company?

Yes this is possible. Why you'd bother doing it within a company structure given the harsh tax treatment it will attract is another question entirely.
 
Yes Private Limited Company.

My thinking is that, in addition to any salary I take from my PLC, the dividends are treated as income, and will be taxed at a higher tax rate (as the lower tax rate will be applied to my salary), regardless if I needed that cash at the time or not

Whereas if I put them through the PLC, and keep it there, I can then draw down at a lower income tax rate when I finally decide to finish working. Basically deferring receipt of the dividend.
 
It doesn't make any sense, unless you've very specific circumstances.

You have to look at the tax treatment both within the company, and on taking money out of the company.

Company will pay tax on dividend income. It will also pay CGT on any gains when it sells shares.
Then you will pay income tax on income (and company might pay PRSI), or you'll pay CGT again on liquidation of the company if you decide that route to extract funds.

There are rarely benefits to holding assets like this through a company.
 
Thanks for the feedback folks, 2 questions on your comments:

'Company will pay tax on dividend income', but isn't this at Corporate tax rate of 12.5%?

'Then you will pay income tax on income (and company might pay PRSI), or you'll pay CGT again on liquidation of the company if you decide that route to extract funds.' If I don't liquidate the company, and draw a modest salary in retirement annually, it will be a lower income tax rate than if I took the dividend now through income tax, yes?

I know this sounds a bit complicated, but I am really thinking of the long game here where I can keep dividend payments now within a PLC, so I can slowly draw off them in retirement at a lower rate.
 
Dan The Man said:
Thanks for the feedback folks, 2 questions on your comments:

'Company will pay tax on dividend income', but isn't this at Corporate tax rate of 12.5%?
Click to expand...
No 25% standard CT rate on unearned income + 20% investment income surcharge. Not quite 45% but approximating to it.

Dan The Man said:
'Then you will pay income tax on income (and company might pay PRSI), or you'll pay CGT again on liquidation of the company if you decide that route to extract funds.' If I don't liquidate the company, and draw a modest salary in retirement annually, it will be a lower income tax rate than if I took the dividend now through income tax, yes?
Click to expand...
Don't forget the annual compliance costs of having a company along with the prospect of all sorts of fire and brimstone if you miss a CRO filing date.

Even simple liquidations cost north of €10k nowadays so once your company is set up you could conceivably be stuck with it.

If you're pondering any sort of sizeable cumulative investment, get proper professional advice before doing anything.
 
€10K liquidation??

I had a plc in the UK a few years ago, it was about £600 to close it down!

Anyway thanks for the info, I shall continue the research!
 
Dan The Man said:
€10K liquidation??

I had a plc in the UK a few years ago, it was about £600 to close it down!
Click to expand...
We're not in the UK, but £4-6k plus VAT is mentioned here. You can shut an Irish company without assets or liabilities for a lot less than £600 but you won't get a liquidation for that price, or the colour of it.

The price of a liquidation here ballooned 4-5 fold about 5 years ago. Most good Irish liquidators turn down more work than they take on.
 
A members voluntary liquidation of a clean company with no complexity wouldn't cost a huge amount, but you're over complicating things.

Based on the tax treatment, I'd suggest you just look at a pension structure instead. What's right for you depends on your circumstances of course.

Pay a tax advisor - they'll pay for themselves quickly if they give good advice.
 
Dan The Man said:
Ouch, can I at least assume the liquidation cost is tax deductible? :)
Click to expand...

I do not think whether the costs are tax deductible should be of too much concern if you are liquidating your company.

Forums can be great but based on this thread your knowledge is not where it could be on this issue, might I suggest you get professional advice focusing on the pro's and con's of your idea and an appropriate structure.
 
You must log in or register to reply here.
Back
Top