Limited Companies also pay corporation tax at 12.5% on trading profits, whereas Sole Trader or Partnership businesses pay income tax at multiples of that rate.
Operating as a Limited Company gives suppliers and customers a greater sense of confidence in a business. Many larger organisations prefer to deal exclusively with legally incorporated businesses.
The formation of a Limited Company is also a low cost method of protecting a company name, in anticipation of the future growth of a new unincorporated business.
If a Limited Company becomes insolvent and is wound up, only the assets of the company are used to defray its liabilities. The officers of the company have no personal liabilities (unless reckless trading was involved), and the shareholders are liable only to the extent of any unpaid shares held.
By contrast, if you trade as an individual, creditors or plaintiffs can claim on all of your personal property (other than the family home, unless it has been used to raise collateral), in order to satisfy the debts, and if this is insufficient you may be declared bankrupt.
Small businesses can minimise tax by:
A limited company has an advantage of raising finance by selling issued shares to investors or by means of overdrafts, debentures and loans.
The resignation or death of a company officer does not affect the structure of the company, which may continue to trade in perpetuity. Any shares held by them may be sold or passed on through their estate.
Registration legally protects the company name against anyone else forming a similarly named limited company either in sound or spelling.
Standard Company Formation - 2 to 3 days- € 290
|Acting as your Company Secretary (per year)||250|
|Provision of your Registered Office Address||200|
|Bank account application and supporting documents. Directors' attendance is required and we will organise an appointment with your preferred bank.||200|
|Plier Company Seal & Book of Registers||80|
|Preparation of Dormant Company Accounts||100|
|Preparation and filing of your company's Annual Return||90|
|Company Limited by Guarantee - registration takes 3-5 days||290|
|Tax Registration - for PAYE/PRSI, VAT and Corporation Tax||200|
|Annual Maintenance of Registers||75|