Subsidiary vs. Branch Office in IrelandA presentation brought to you by LawyersIreland.eu

1

Business Forms in Ireland

• 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  to the parent company.

2

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.

3

>> Opening a Subsidiary in Ireland

• The minimum requirements imposed by the Irish Company Law related to the establishment of a subsidiary are the following: 

  minimum two directors;

one of the two has to be an Irish resident;

it must have a minimum share capital;

a registered office, with a registered address in Ireland.

4

Opening a Branch Office in Ireland >>

• A branch office depends on the parent company and cannot take business decisions.

• The Irish Government offers various tax exemptions to foreign companies interested in opening a branch office in Ireland.

• Our Irish solicitors can present to you more details about the benefits of opening a branch office in Ireland. 

5

>> 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. 

6

Comparison between Irish Branch and Subsidiary >>

• When it comes to deciding on the business forms to set up in Ireland, there are certain criteria to be taken into account:

the subsidiary is an independent entity, while the branch office depends on the parent company and may not undertake its own business activities;

the subsidiary will be subject to the Irish corporate taxation system, while the parent company will be taxed for the branch office’s activities.

7

>> Comparison between Irish Branch and Subsidiary

• The other aspects to take into account are:

foreign companies are encouraged to open branch offices in Ireland by benefitting from certain incentives;

subsidiaries are subject to stricter audit requirements in Ireland compared to branch offices.

8

Assistance in Opening a Company in Ireland

• If you are interested in expanding your business in Ireland, please contact our Irish lawyers, who can help you choose the best business form for your needs: either a branch or a subsidiary.

• Our law firm in Ireland can also offer you legal representation in the company registration process.

9

Thank you for your attention!

For more information, please contact us at:

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

office@lawyersireland.eu

www.lawyersireland.eu10