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Irish Non-Domiciled Ltd.: Advantages and important information

An Irish non-domiciled Ltd. is a limited company

Introduction

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

What is an Irish Non-Domiciled Ltd?

An Irish non-domiciled Ltd. is a business entity that is registered in Ireland and is typically used by foreign entrepreneurs who are not resident in Ireland. This structure allows 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. Ireland also has an extensive network of Double taxation agreementwhich can further minimize the tax burden.

No trade tax

There is no special business tax in Ireland as there is in Germanywhich further reduces the tax burden for companies.

Exemption of foreign capital

The capital of the Ltd. is not taxed 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 offers.

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 winding up of a Ltd. in Ireland is carried out through a rigorous process which 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

A "Registered Office" is required for the formation of an Ltd. in Ireland. This is an address where the company is legally domiciled and where official correspondence can be delivered. This address can be that of the 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 (Value Added Tax, VAT). 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

The Corporate income tax in Ireland is 12.5 % for 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 included in the personal income of the managing director. Directors and employees must pay personal income tax on their own income from salary, wages or dividends. The amount of income tax depends on their tax residency 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 vary depending on the Type of company and location may vary.

What is the procedure for dissolving an 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.

Does an Irish Ltd. offer 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 other taxes that 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.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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