A foreign investor interested in expanding his business in Ireland
can choose from two legal options
, namely a subsidiary
or a branch office
. The difference between them is given by the level of independency the establishment can have when discussing on the parent company
. A subsidiary
is a separate legal entity
, subjected to taxation, while the branch office
depends on the parent company
. Our Irish lawyers
are experienced in providing legal assistance related to the incorporation these two business forms
. At the same time, our lawyers
can offer advice on the main advantages provided by the two legal entities
in accordance with the budget and the business plans the investors have.
Opening a subsidiary in Ireland
Before investing in Ireland, a businessman should know that a subsidiary is an independent legal entity, different from the one set up in the country of origin. Investors are usually interested in this type of legal representation as the liability of the parent company can only be limited to the share capital invested in the subsidiary.
The minimum requirements imposed by the Irish law system related to the establishment of a subsidiary are the following:
• minimum two directors;
• one of the two has to be an Irish resident;
• a registered office, with a registered address in Ireland.
must register at the Tax Office
for paying the corporate tax
, Value Added Tax
, Pay Related Social Insurance
for the company’s employees
and Relevant Contract Tax
. Our attorneys in Ireland
can offer you the legal support for opening a subsidiary
When opening a subsidiary in Ireland
, the investors can choose from one of the business entities
available under the Irish commercial legislation
. However, most of the companies registered in Ireland
take the form of a limited liability company
, which, overall, provides the most advantageous conditions for the majority of the businessmen.
It is important to know that during the incorporation procedures, the investors should also draw the company’s statutory documents
– the articles of association
The procedure must be certified in front of a public notary in Ireland, who will attest that the documents are completed following the applicable legislation.
Like any other company in Ireland
, the subsidiary
will need to be registered with the Companies Registration Office
, which is the main institution regulating the activity of commercial businesses
in this country.
Opening a branch office in Ireland
A branch office
depends on the parent company
and cannot take business decisions. Still, the Irish government
offers incentives for foreign companies
interested in opening a branch office in Ireland
, by giving, for example, various tax exemptions. Our Irish lawyers
can present to you more details about the benefits of opening a branch office in Ireland
In order to set up a branch office, an investor should submit the next documents:
• a notarized stamped copy of the foreign company’s memorandum;
• a copy of the certificate of incorporation of the parent company;
• the list of directors
of the parent company
• name of the Irish resident person who is authorized on the behalf of the company;
• registered address of the Irish branch office.
In terms of taxation, companies established as branch offices in Ireland
will be liable for paying the corporate tax only in respect to their activity conducted on the Irish territory
. Also, the branch
will need to register for taxation purposes
, including those related to the taxation of the employees working in the respective establishment.
The video below presents the main differences between Irish subsidiaries and branches: