Before understanding the concept of company formation specifically for an Offshore Company, it is essential to have a clear idea about what precisely an Offshore Company is by definition. An Offshore company is a corporate legal entity that has a firmly established parent company in another country or jurisdiction and chooses to operate in another country or jurisdiction. Offshore companies do not require physical offices for running their operations, and therefore, as per generic company laws, offshore companies are most of the time exempted from certain forms of taxes.
The few reasons why there is increased flexibility can be understood through the specifications of the company type. Because of fewer taxes, no labour requirements, no additional expenditure for tangible assets makes the Offshore Company a very viable company type for quickly and smoothly running the business from the parent headquarters itself. The Irish Market is an outstanding example for a coalesced ecosystem of corporate entities building a common footfall in the Republic of Ireland. What sets them apart from the rest of the world is the fact that their large scale teamwork is boosting the economy to favorable heights.
How to Setup Offshore Company as per Irish Company Laws
The following information is specified with respect to the Republic of Ireland which is a part of the European Union. The majority by-laws do not remain constant for Northern Ireland as that part of Ireland is a member of the United Kingdom. The companies that wish to establish in the Republic of Ireland must adhere to the guidelines of the Companies Registration Office, and Companies act 2014.
1. Choosing the Company Incorporation type
Depending on the kind of company one wishes to establish, they must decide the inner Irish jurisdiction where they would like to start the Offshore Company. The incorporation details must include the partners they are functioning with inside Ireland, the nations they plan to trade with (must consist of member states of EU as well), the parent company (sponsor) details. The incorporation process also involves submitting certain documents to the Companies Registration Office Ireland.
2. Company Naming Process
Certain words cannot be included in company names irrespective of the company type as these words are considered as statutory and in some cases misleading towards the eyes of the law. A few examples of such words would be – casino, co-operative and municipal. These terms include statutory wordings, misleading phrases and terminologies that can only be used by legal state authorities. In addition to statutory restrictions, the applicant must also apply a suffix towards the company name such as – Limited or Ltd., Incorporated or Inc. and so on. Hence, it is best suggested to take the primary name tag of the company name and attach a suffix to simplify the process.
3. NACE Code
Post the company’s name has been registered, the applicant must apply for a NACE code before complete incorporation. The NACE code is a code which represents company activities and is a mandate as per the Companies Act 2014. The NACE code is used by the Companies Registration Office and the government as a whole to keep track of the incorporated company's activities and status ever since establishment in the Irish Market.
4. Director Details
The details of the Offshore Company’s director or directors must be submitted in an orderly fashion in the following manner
- Full Name of the Director
- Nationality and residential Address
- Date of Birth
- Occupation and Business Activities
- Portfolio of Companies that the candidate is a director of
If the nominated director is not a member of the European Economic Area, then he/she is not considered as Resident Director. Therefore the applicant must apply for Section 137 Non-Resident Director’s Bond that will remove the obligation of Resident Director.
5. Company Secretary
Any company planning to establish its business in Ireland must appoint a company secretary to ensure that the company is following the statutory obligations set up by the CRO and must report back the same. The company secretary can be a director as well or a business entity appointed by the incorporated company.
- Post-establishment, the company must submit an annual return for the previous year's operations and must consist of supporting documents such as books of accounts to the Registrar of Companies. The failure to do so will result in substantial penalty fees as well as the loss of the audit exemption for two years. The first Annual Return is due six months after incorporation (no accounts required)
- Most companies must conduct an Annual General Meeting after 18 months of incorporation, but in the case of Offshore Companies, this becomes an exception due to lack of tangible office in the jurisdiction
- When a company’s turnover exceeds Euro 8.8 million, then, in this case, they must prepare and file audited accounts
- Corporation Tax Return must be made per annum
- VAT Returns must be made every two months post VAT Registration
- The absence of a European Economic Area Director-Resident Director spikes the necessity to apply for 'Section 137 Non-Resident Directors Bond’ to be put in place
The market in Ireland follows a free flow system wherein there is no particular season for doing business. Market fluctuations take place solely based on company decisions to make significant changes such as – high discount sales, new product launches, and customer meetups and so on. The result of which favours company formation at all times throughout the year with no chronological restrictions.
The above article provides the necessary administrative intellect required for an individual or a business entity who wishes to establish an Offshore Company in Ireland. Being a global business entity, we realize the gruesome process that innovative minds must go through to create their businesses, therefore, let us simplify the struggle for you, Contact us to know more on the process of business set up in Ireland and let us assist you with our comprehensive network of global contacts.