Open a Branch vs. Subsidiary in Ireland A presentation brought to you by IrelandCompanyFormation.com

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Subsidiaries and Branches in Ireland

• Foreign investors who are interested in the Irish business environment can set up here a subsidiary or a branch.

• The Irish subsidiary is an

independent legal entity from the parent company which is allowed to have full foreign ownership. 

• The Irish branch is an entity which does not have a distinctive legal personality than the parent company.

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Open an Irish Subsidiary

• When entering the Irish business market, investors may set up a subsidiary.

• Although the subsidiary is controlled by a parent-company, it can be set up as an independent legal entity, following the company formation procedures available in Ireland.

• An Irish subsidiary can have 100% foreign ownership, but at least one of the directors should be an Irish citizen.

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Choose a Legal Entity for an Irish Subsidiary

• The registration of an Irish subsidiary starts by choosing an appropriate legal entity.

• The most common legal entity chosen for company formation in Ireland is the limited liability company.

• In this case, the company should be represented by minimum two directors and should have a minimum capital of EUR 38,000.

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Requirements for Setting up an Irish Subsidiary

• The company registration in Ireland requires the following:

the company’s share capital must be paid up during the incorporation procedures and it must represent minimum 25% of the total value;

the subsidiary must have a registered office on the Irish territory, a procedure on which our team of company formation representatives in Ireland can offer assistance.

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Register a Subsidiary in Ireland

• In order to open a company in Ireland, the investor should sign the articles of association and the memorandum.

• After the company’s documents are prepared and verified, they have to be submitted at the Irish Commercial Registration Office (CRO), the main institution designed for the incorporation procedures of an Irish business.

• The CRO will issue a certificate of incorporation.

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Open an Irish Branch

• Another way to start a business in Ireland is by opening up a branch office.

• A branch office is usually incorporated to represent the parent-company’s interests on a foreign market.

• It is important to know that the branch office does not represent a different legal entity than the parent company, thus it has limited rights referring to the way in which the business is carried out.

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Register a Branch Office in Ireland >>

• In order to register a branch office in Ireland, the following documents are required:

notarized copies of the parent’s company certificate of incorporation, articles of association and charter;

a legal representative for the branch and an Irish citizen who complies with the EU Branches Disclosures law;

copies of the accounting documents.

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>> Register a Branch Office in Ireland • The branch office has to be registered,

as any other company, at the CRO. At the same time, it must be registered for tax purposes.

• At the same time, they must submit the accounting documents and audit reports of the parent company at the Irish CRO.

• It is also compulsory to register for social security and the pension fund, once the company hired personnel in Ireland.

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Subsidiary vs. Branch Office – Important Aspects • A subsidiary must have at least 50%

of the voting rights held by the parent company. However, the parent company is not responsible for the subsidiary’s debts.

• A branch office must perform the same operations as the parent company.

• Our team of company formation consultants in Ireland can provide assistance for all the aspects referring to a branch office or a subsidiary.

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Thank you for your attention!

• For more information please contact us at:

(+44)203-287 0408 (for international clients)

office@lawyersireland.eu

www.irelandcompanyformation.com 11