Irish laws

[vader]

Hello !

Is it possible to start your own business in Ireland while you`re living officially in another country and you`re a citizen of another country, but the country is a part of European Union. What conditions ?

thanks,

Vader

[Libero]

Yes, it's called freedom of establishment. It is a right under EU law and the duties on Member States are outlined in a series of Directives.
You can read about the European Commission's advisor on legal rights here. Though she may be restricted to helping Irish citizens only, I'm sure she can direct you to someone you can help.

Note that if you want to incorporate your business in Ireland and make it a limited company, there may be a residency requirement under the Irish Companies Acts.
However it is now possible to register your business thorugh the European Economic Interest Groupings (EEIG) regulations, or as a non-Irish corporation with the Companies Registration Office. Naturally, this requires that your business already be incorporated in your home country.

[vader]

what does it mean "incorporate business" and what`s "limited company" ?

sry. my english isn`t perfekt

[hivemind]

'Incorporate business' just means to bring your business in to existance as a legal entity.

'Limited company' is a type of business, once again this is a legal term. My old, old leaving cert accountancy taught me that the limited part meant that the owners assets were protected. So, for example, if your crane collapses and takes out a school your company can be sued in to the ground but your liability is limited to the companies assets, they can't take your own house. When you see Ltd. after a company name that stands for limited.

Setting up a company is not that simple, I'd really suggest you get an accountant and/or lawyer to help you.

[vader]

What`s the minimum capital that I must have for establishing Private Limited Comany ? I`m from another Member State of EU and there is double taxation agreement between this State where I`m from and Ireland. What does it mean, do I have to pay twice from this money that I`m earning in Ireland ?

[Libero]

What`s the minimum capital that I must have for establishing Private Limited Comany ?

One euro, I think. In other words, only a nominal amount.
But note that since 1999 all limited companies need to have a director resident in the state. That requirement can be avoided by obtaining a certificate from the registrar of companies to state that the company has a real and continuous link with economic activity in the State, or by providing a bond worth about €26,000. I hope that makes sense.

I`m from another Member State of EU and there is double taxation agreement between this State where I`m from and Ireland. What does it mean, do I have to pay twice from this money that I`m earning in Ireland ?

No - it aims to avoid that possibility.
The precise effects will depend on the detail of the Treaty and the type of earnings generated in Ireland, e.g. corporate earnings or personal income.

These type of questions are best answered by a solicitor acting in that capacity. That can be expensive, so there are all sorts of company formation agencies that can help with setting up simple, straight-forward private limited companies. Try searching in google.ie for "company formation".

[Neutral]

Why not register in your home country?

A business from one EU country can always trade in another.

[Libero]

One other thing: the Law Society of Ireland run a fine company formation service. The prices are reasonable compared to other agencies, it operates quickly and it has a good reputation.

Their website is here: http://www.lawsociety.ie/displayCDAC...any_formations

[vader]

"Private Limited Company" has to pay corporation tax (Standard Rate on Trading Income 12.5%), but if I`m shareholder of Private Limited Company and director as well, do I have to pay income tax also from my salary and dividends ? (Single & Widowed Persons: No Dependent Children 2005
20% on first 29,400
42% on balance

[Libero]

if I`m shareholder of Private Limited Company and director as well, do I have to pay income tax also from my salary and dividends ?

Yes.
This is a common question since people are often interested in the prospect of paying a lower rate of tax by incorporating their business or professional practice.

As the Revenue (tax authorities) will tell you, this is fine so long as company profits taxed at that rate are not actually spent as personal income. Salary and dividends are income and must be declared for income tax.

However there are other advantages to incorporation, including the ability to claim for professional expenses. That reduces the overall company profit liable to be taxed (and leaves the company with more profit to distribute as dividends or directors' payments)
You can read about that and other frequently asked questions at http://www.revenue.ie/faqs/busnes.htm

There are many other questions you may have about tax and legal issues.
However the only people well enough qualified to advise you should not advise you on public message boards!
Please PM me and I should be able to put you in touch with those who can help.