Guide to Changing Your Business Structure
Guide to Changing Your Business Structure in IrelandUpdated on Monday 05th December 2022
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All companies in Ireland are set up under a certain legal entity, established after the needs and wishes of the shareholders. At moments, the investors may want to change the business structure, due to a set of reasons; this procedure is legal under the assumption of the fact that the needs of the company or the investors’ may change during the years of business activity.
Entrepreneurs who are interested in changing the legal structure of their company can receive assistance on this matter from our team of Irish solicitors, who can provide advice on the procedure to be followed in accordance with the current legal entity of the business.
Change the legal structure of an Irish company
Regardless of the reasons for which a businessman wants to change the legal structure of his or her company, it is important to know that this legal action is possible by respecting few steps. Our team of Irish lawyers can offer assistance for these procedures, which can be performed through legal methods such as mergers or dissolutions.
Change a sole trader into a limited liability company
The simplest type of change is the transformation of a sole trader company into a limited liability company. The sole trader represents the most basic form of business available in Ireland, due to the fact that this type of structure can be established by an individual, who must register minimum information at the Companies Registration Office (the business name).
The person representing the sole trader is personally responsible for the business’ debts and, in the situation in which the business may develop, the individual may wish to protect his or her own assets from the ones of the business’. In this case, it is recommended to change the sole trader with a limited liability company (LLC), the most common type of legal structure available in Ireland, which provides limited liability to the shareholder, in accordance with the shares he or she owns in the company.
If the company will further develop, the investor can change the LLC into a corporation.
Changing the business structure will also mean that the business owner will need to prepare for different tax requirements. Our accountancy services are suited to the needs of limited companies, partnerships or sole traders, all of which are subject to different annual reporting requirements. Contact our Irish accountants for more information on how we can assist you and your new business form.
Persons who need to receive more information on the way in which a business structure can be changed can address to our team of Irish lawyers.