RoI Ltd Company Formation

[UpTheIron]

One for Eric maybe?

I may have the opportunity to do some work for a RoI based Ltd company, although I would be carrying out the work in the UK, RoI and rest of Europe.

I could use my current UK Ltd for this, however for other reasons I am looking to close this company.

What advantages / disadvantages would there be to incorporating a RoI Ltd company? The work is likely to last 6 months or more. I've had a quick look around, and the requirement for a resident director or Section 43 Bond looks like the only hurdle.

A seperate, but related question for those with crystal balls...which currency is going to be the stronger over the next 6 - 12 months - £ or €?

[Eric Mc]

I've not worked in Ireland for over 22 years so can't claim any specialist knowledge on Irish taxation or company law at this removal in time. I do know that Irish Corporation Tax rates are MUCH lower than in the UK.

However, your own personal income from the company would almost definitely be subject to UK Income Tax unless you can somehow show you are no longer a UK tax resident.

[UpTheIron]

Cheers Eric...I realise that your expertise is based around the UK tax regime.

The lower CT rate is an attraction (12.5% I believe) and would offset the other costs I have identified see relatively quickly.

I'm fortunate that bringing the funds back to the UK would not be an immediate worry (in as far as me personally needing to extract money from the company)...although this would obviously be a problem at some point in the future.

Edited by UpTheIron on Wednesday 18th June 14:02

[Eric Mc]

Residency of limited companies can be very tricky to establish. Merely having the registered office in another country will not on its own place the residency in that country. However, if it trades from there and is managed there (and indeed has local staff, directors, an office, place of business etc) then it will probably be defined as resident there for tax porposes.