Irish Non-Domiciled Ltd.: Advantages and important information

Introduction

An Irish Non-Domiciled Ltd / Non-Domestic is a limited company that is registered in Ireland but operated by non-resident owners. Similar to a Non-Domiciled / Non-Domestic LLC, this type of company is registered in a country where neither the owner nor the business activities are based. This model, often referred to as an offshore company or International Business Company (IBC), offers numerous advantages for foreign entrepreneurs.

What is an Irish Non-Domiciled / Non-Domestic Ltd?

An Irish Non-Domiciled Ltd is a business entity registered in Ireland and typically used by foreign entrepreneurs who are not resident in Ireland. This structure allows the owners to operate internationally while benefiting from Ireland's favorable corporate laws and tax regime.

Advantages of a non-domiciled Ltd.

Tax concessions

Ireland offers a low corporate tax rate of just 12.5 %, making it an attractive location for international companies. It also has Ireland has an extensive network of double taxation agreementswhich can further minimize the tax burden.

No trade tax

In Ireland does not have a special trade tax as in Germanywhich further reduces the tax burden for companies.

Exemption of foreign capital

The capital of the Ltd. is not controlled by foreign tax authorities for income tax purposes, but only the profit distributions of the director in his home country.

High anonymity

Ireland allows companies to disguise their true owners and beneficiaries, providing additional privacy and anonymity.

Flexible corporate structure

Ireland has a progressive company law that allows companies to customize their structure and articles of association.

Access to the European market

Ireland is a member of the European Union, which enables companies to access the European market and establish themselves in other EU countries.

Important basic knowledge about Irish Ltd.

Is it a non-domiciled company?

Yes, the Irish Ltd (Irish Limited) can be operated as a non-domiciled company if the owners are not resident in Ireland.

International recognition

The Irish limited company (Ltd) is internationally recognized as a legal form and enjoys a high reputation.

Regulations on dissolution and liquidation

The dissolution of a Ltd. in Ireland is carried out through a strict process that includes consideration of the interests of creditors and shareholders. There are two main methods: voluntary liquidation (for solvent companies) and receivership or insolvency proceedings (for insolvent companies).

Corporate structure and managing directors

An Irish Ltd. must have at least two directors or one director and a company secretary. In a case with two directors, the second director can act as company secretary. At least one of the directors (or the company secretary) must be from an EU or EEA state. The directors may be legal entities or natural persons.

Requirements for the registration of a Non-Dom Ltd. in Ireland

Registered Office required

For the establishment of a Ltd. in Ireland a "Registered Office" is required. This is an address at which the company is legally domiciled and to which official correspondence can be delivered. This address can be that of the company's registered office or that of a service provider representing the company.

Foreign ownership

Yes, a foreigner can register a Non-Domiciled Limited Company (Ltd.) in Ireland. The exact requirements for incorporation and the exact procedure may vary depending on the Legal form and location of the company.

Accounting and reporting obligations

An Irish Ltd. is required to keep accurate accounts and records and must submit annual financial and tax returns.

Legal entity and limitation of liability

Yes, the Irish Ltd. is a legal entity and offers a limitation of liabilityso that the shareholders are generally only liable for the company's share capital.

Minimum capital

The share capital of the Irish Ltd. must be at least €1.

Costs of establishing an Irish Ltd.

The cost of setting up an Irish Ltd. can vary, but generally ranges from €1,000 to €3,000, depending on the complexity of the structure and whether professional help is sought.

Corporate income tax and trade tax liability

An Irish Ltd. is liable to corporation tax. The corporation tax rate is 12.5 % for Trading profits and the VAT rate is 23 % for most goods and services. There is no special trade tax in Ireland as there is in Germany.

VAT allowances for e-commerce and services

In Ireland, companies trading in tangible goods with a turnover of EUR 75,000 or more and companies offering digital goods with a turnover of EUR 37,500 or more must Value Added Tax (VAT) pay. There are exemptions or reduced tax rates for certain services such as education, health and financial services.

Further tax information

Income tax

Income from the Irish market and the salary of the director to an Irish account are subject to income tax in Ireland.

Corporate income tax

Corporation tax in Ireland is 12.5 % on trading profits.

Value added tax (VAT)

The general Value added tax (VAT) in Ireland is 23 %.

Capital gains tax

Dividends and interest income may be subject to capital gains tax.

Other applicable taxes

In addition to corporation tax and VAT, companies in Ireland may have to pay other taxes and duties for certain activities or services, such as stamp duty on the transfer of property or capital gains tax on dividends and interest income.

Personal income tax for managing directors and employees

The income of an Irish Ltd. is not added to the personal income of the managing director. Managing directors and employees must pay for their own income from salary, Pay personal income tax on wages or dividends. The amount of income tax depends on your tax residence and income level.

Conclusion

The combination of low tax rates, high anonymity, flexible corporate structure and access to the European market makes Ireland an attractive location for the establishment of non-domiciled companies.

FAQs

Can a foreigner register a Non-Dom Ltd. in Ireland? Yes, a foreigner can register a Non-Domiciled Limited Company (Ltd.) in Ireland. There are certain requirements and procedures which may vary depending on the type of company and its location.

What is the procedure for dissolving a Irish Ltd? The dissolution of a Ltd. in Ireland is carried out through a strict process that takes into account the interests of creditors and shareholders. There is voluntary liquidation (for solvent companies) and receivership or insolvency proceedings (for insolvent companies).

What accounting obligations does an Irish Ltd. have? An Irish Ltd. is required to keep accurate accounts and submit annual financial and tax returns.

If an Irish Ltd. offers a Limitation of liability? Yes, the Irish Ltd. offers limited liability so that shareholders are generally only liable for the share capital of the company.

What is the corporation tax rate in Ireland? The corporation tax rate in Ireland is 12.5 % on trading profits.

Are there any others Taxesthat apply to an Irish Ltd. In addition to corporation tax and VAT, other taxes such as stamp duty on property transfers and capital gains tax on dividends and interest income may also apply.