Thanks to new companies act 2014 it is has never been easier to set up a limited company.
You now only need one director for a limited company, however you still need a company secretary.
Unfortunately the director and the company secretary, can not be the same person. Most people are appointing their spouse, partner, family member or a secretarial company as the company secretary.
Before you set up a limited company, you should maybe consider some of the advantages and disadvantages compared to be being a sole trader;
- The company is separate legal identity, so it has limited liability, for example if a company was liquidated, all the money owed to and from the company would be liquidated with the company, as long as there was no fraudulent or reckless trading involved. Where as a sole trader could be personal liable for all the amounts due.
- Corporation tax rate is 12.5%, versus up to 40% income tax as a sole trader.
- A director can invest more into a pension than a sole trader, “subject to revenue approval”.
- A director can claim mileage per civil service system.
- A director can receive a tax free voucher of EUR 500 per annum.
- You have to file accounts with the Companies registration office (www.cro.ie) in addition to the revenue.
- Your accounts can be viewed on-line on www.cro.ie.
- Directors salary is disclosed on www.cro.ie.
- Any money taken out of the bank account by a director must be included in wages and P30 return the month it is taken.
- Any profits you do not take out of company before year end, would be subject to tax at 12.5%.
We can usually set up a limited company within five working days.
Please contact me firstname.lastname@example.org if you’re interested in starting or changing to a limited company.