# Single Member Limited Company



## martyoo (19 Mar 2007)

Could someone tell me how I would go about setting up a single member limited company?

Thanks in advance


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## BrenG (19 Mar 2007)

*Re: Signle Member Limited Company*

Any acountant will do this for you.


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## martyoo (19 Mar 2007)

*Re: Signle Member Limited Company*

Ok so I couldnt do this my self?
Thanks


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## simplyjoe (19 Mar 2007)

*Re: Signle Member Limited Company*

company formation agents are listed in phone book. We use omnipro - I think they are based in Carlow. If you do not use an accountant (I think you should) make sure you do not miss your deadlines.


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## Icarus (19 Mar 2007)

*Re: Signle Member Limited Company*

There are some online services as well, here's one that seems cheaper than most and is alot less than an accountant would charge. One acountant told me that he outsourced all his formations. The price between what he charged and what these formation companies charge was a few hundred percent.

http://www.registeracompany.ie/?gclid=COGfluuj6ooCFQu2bgodlhbVpw


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## martyoo (19 Mar 2007)

thanks for the advice


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## Domo (19 Mar 2007)

I would just say that there are reasons why you would want to use a company - and reasons why not - you need to get professional advice as to what is best for you.

A lot of people set up companies, and are sorry a year or two down the line.  Why not operate as a sole trader?


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## martyoo (20 Mar 2007)

well thats what I wanted to do but I was told by my employer I needed to set up a company


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## asdfg (20 Mar 2007)

I take it that you a going from being an employee to becoming a contractor (self employed) and are aware of the implications involved. Best to talk to an accountant.


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## Square Mile (20 Mar 2007)

Hello

As you are forming a company, I think that you may still need more than one shareholder.

In many cases, however, your accountant can act (for a fee) as a shareholder.

You may also consider an umbrella company.

SM


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## BrenG (20 Mar 2007)

*Single member company
*A single member company is a private company limited by shares or a guarantee company having a share capital, which is incorporated with one member, or whose membership is reduced to one person. However, the company must have at least two directors and a secretary. The sole member, if he/she so decides, can dispense with the holding of General Meetings, including Annual General Meetings (AGMs). However, certain modifications laid down in the European Communities (Single-Member Private Limited Companies) Regulations 1994, have to be made. Also the accounts and reports that would normally be laid before the AGM of a company still need to be prepared and forwarded to the member.


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## RedStix (3 Apr 2007)

As BrenG mentioned above, in a single member company, the membership refers to shareholders (or owners) of a company. So whilst it is possible to have just one shareholder, its is still a legal requirement to have a minimum of two company directors. Directors are the inidividuals responsible for the day to day running of the company and ensuring compliance while the shareholders are the actual owners of the company. In small companies, 99% of the time the shareholders and directors are the same people.

In relation to setting up the company, it is best going to a company formation agent to do so. The main reason being is that they can usually register your company in 3-5 working days. While going to an accountant to do so is also a good idea, in my experience a lot of accountants outsource formation agents anyway to set up the companies for them (because formation agents can do it faster).

In relation to the link above for formacompany.ie, while €75+vat for a company formation sounds cheap, it was more of a headache for me than anything else. Although they will draft the paperwork for you, you have to file the documentation with the Companies Office yourself and pay the filing fee to CRO of €100. By submitting your company manually, as i did, it will then take from 4-5 weeks to have your company registered. After that you will need to purchase a company seal, and perhaps a company register also which will cost you approx €50. So for €225 (€75+€100+€50) it will take you 5 weeks to set up your company with this crowd and you have to do most of the work yourself.... Some company formation agents do all this work for you in 3-5 days including filing fee's and company seals etc for approx €252... I'd say it'd be worth your while spending the extra €27!!!!


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## oopsbuddy (3 Apr 2007)

GED's experience above is the same as mine. For your fee of €75, you get the paperwork delivered by email. After that you do it all yourself. You get no advice, and IMHO its not worth it. But yes, you can do it yourself, but beware of the implications of setting up a company; you can't treat it lightly and you must not take your eye off the ball in terms of obligations and timing of deadlines.


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## blackberet28 (4 Apr 2007)

you need two shareholders an accountant and a sectary to form a company . go to www.cro.ie (irish company reg office) think of a name and GET AN ACCOUNTANT! i wouldnt attempt to do the job of someone who spent years in college to do the same thing. you also need to think of a company name. have fun


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## RedStix (5 Apr 2007)

Mind you, an accountant normally charges a lot more than a company formation agent IMO


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## ubiquitous (5 Apr 2007)

GED said:


> In relation to setting up the company, it is best going to a company formation agent to do so. The main reason being is that they can usually register your company in 3-5 working days. While going to an accountant to do so is also a good idea, in my experience a lot of accountants outsource formation agents anyway to set up the companies for them (because formation agents can do it faster).



I disagree (I am an accountant).

Company formation agents operate an "execution only" service. They make their money by forming companies so they may not tell you that you might be better off not forming a company in the first instance. They will not advise you on the legal hazards and responsibilities of being a company director, or such issues as involving other shareholders in the company, and will not give you any advice on the legal requirements re keeping accounts etc. Neither will they give any advice on tax registration or other tax compliance issues.

ps I note that formacompany.ie has a page on the advantages of forming a limited company [broken link removed] but nothing on the drawbacks!


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## ubiquitous (5 Apr 2007)

GED said:


> Mind you, an accountant normally charges a lot more than a company formation agent IMO



Obviously - as they are providing advice, as well as a company formation service. At least 50% of the clients who approach me wanting to form companies end up deciding not to do so, once they are advised of all the implications. It is much cheaper for these people to pay a modest sum for advice in the first instance rather than pay a formation agent for a company that they do not ultimately need, as well as all the costs of maintaining and ultimately dissolving a company.


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## RedStix (5 Apr 2007)

Fair point ubiquitous. Formation agents generally do not provide information on tax implictions of ltd co's vs sole traders or indeed any other implications of setting up a limited company whereas accountants are professionals in this area


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## oopsbuddy (13 Apr 2007)

blackberet28 said:


> you need two shareholders an accountant and a sectary to form a company . go to www.cro.ie (irish company reg office) think of a name and GET AN ACCOUNTANT! i wouldnt attempt to do the job of someone who spent years in college to do the same thing. you also need to think of a company name. have fun





No...you do not!  You need 2 DIRECTORS, and a Secretary (which can be one of the directors) and after that you can do it yourself. You only need ONE shareholder. You do not need an accountant to FORM a company - you can do it yourself, or through a formation agent, or through an accountant, and the costs will vary depending on your choice of option. Many if not most accountants do use formation agents to form companies for their clients, and once their mark-up is added, it is usually the most expensive option. 

However this is not to take away from the importance of good accountancy advice, as you will need an accountant to prepare your accounts and to give you appropriate tax planning advice, and this advice should also be relevant to whether or not forming a company is in your best interests or not. Even if the business plan suggests that a company is appropriate, if you are not the type of person who will adhere rigidly to the record keeping and filing requirements, be careful about going down this road.


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## ADELS (14 Apr 2007)

*Re: self employed contractor Limited Company*

I believe this option is good for all the people who come to Ireland for few years, who most probably comes  on foot of specific work permit, and I am looking for similar experience like mine!!

Could anyone help me in this question, I want to set up my Ltd company for self employment contractor to manage my taxation more effectively, the issue is that I am residing in the country on foot of a work permit for one year ( which is employer specific) and I have been here only 4 months. My question is about the status of my visa, if I set up my company, I am going to be the director and the employer of my self, what about the work permit which is specific for my current employer? it is like changing employer, isn't it?? shall I apply for new work permit??


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## hhhhhhhhhh (14 Apr 2007)

*Re: self employed contractor Limited Company*



ADELS said:


> I believe this option is good for all the people who come to Ireland for few years, who most probably comes  on foot of specific work permit, and I am looking for similar experience like mine!!
> 
> Could anyone help me in this question, I want to set up my Ltd company for self employment contractor to manage my taxation more effectively, the issue is that I am residing in the country on foot of a work permit for one year ( which is employer specific) and I have been here only 4 months. My question is about the status of my visa, if I set up my company, I am going to be the director and the employer of my self, what about the work permit which is specific for my current employer? it is like changing employer, isn't it?? shall I apply for new work permit??



You need 2 directors to setup a company 1 must be an Irish resident.
I think you will have to apply for a new work permit for the company to employ you.


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## PRman (25 Apr 2007)

Yeah when you register for VAT the Revenue will look for the work permit I think. An accountant or tax advisor will advise you...


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