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Setting up a limited company

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  • 28-07-2015 7:07pm
    #1
    newmug
    Banned (with Prison Access) Posts: 3,571 ✭✭✭


    Hi all. I am thinking about setting up a limited company and going into business for myself. However, I dont know much about this, and I have a few questions:

    1) Does the company have to carry out a specific business? For example, if you were a painter, a welder, a farmer, an engineer, and a builder, would you need 5 separate companies for each business, or could you just call yourself Newmug ltd. and do all those things under the one company?

    2) Do you need to go to an accountant, or can you do your own tax returns?

    3) How do you register for VAT?

    4) Is there a minimum amount or percentage of capital that you have to put into the company yourself?

    Thanks,
    Newmug


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  • Options
    #2
    tacofries
    Registered Users Posts: 854 ✭✭✭tacofries


    1.) Read Pedro's post below!

    2.) First annual return which is due 6 months after incorporation can be done by yourself online by filling out a B1 form on www.core.ie . Depending on the amount of business activity, you may need help from your accountant to complete future annual returns. You will not need to have your accounts audited however unless you are over a certain turnover(forget what that turnover is) and you haven't lost your audit exemption. When filling out the form online don't be afraid to ring revenue as they are very helpful and make sure to fill out the form on time.

    3.) You register for VAT by filling out a TR2 form. This form can be either posted or emailed to the tax office for your jurisdiction. Email is a much quicker process and again do not be afraid to ring revenue for help.

    4.) No, there is no minimum capital needed for a limited company.

    Are you sure a limited company is the right option? What is it the type of business you have in mind? To setup as a limited company it should cost around the €400 mark.


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    #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    tacofries wrote: »
    1.) You do have to give a description of what the purpose of the company is. i.e. what business it will be carrying out, so for that reason you won't be able to be a jack of all trades.

    Not any more, since the 2014 Act.

    OP read HERE


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    #4
    capefear
    Registered Users Posts: 773 ✭✭✭capefear


    When you set up a limited company you don't need objects for your company but you still have to have a Nace code (activity description) of what the business is doing for statistical purposes and when you when register the company for tax you need to tell the revenue what the business activity of the company is going to be.


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    #5
    newmug
    Banned (with Prison Access) Posts: 3,571 ✭✭✭newmug


    ^^^ Great post Pedroeibar1. One bit confused me though - A limited company can have one director, but a DAC must have have two; Are they both limited by shares, or is that just the DAC?


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    #6
    newmug
    Banned (with Prison Access) Posts: 3,571 ✭✭✭newmug


    capefear wrote: »
    When you set up a limited company you don't need objects for your company but you still have to have a Nace code (activity description) of what the business is doing for statistical purposes and when you when register the company for tax you need to tell the revenue what the business activity of the company is going to be.

    Could you not just say "general trading"?


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    #7
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    newmug wrote: »
    ^^^ Great post Pedroeibar1. One bit confused me though - A limited company can have one director, but a DAC must have have two; Are they both limited by shares, or is that just the DAC?

    Both are Limited by shares - DACS are “specialised” and generally not needed for “run of the mill” operations - DACs are suitable for those who want to be able to list debt securities (bond issuance) or where for a specific reason (e.g. to restrict the activities of a joint-venture vehicle) the promoters want the company to have an objects clause, typically if the company is set up for a specific activity and the promoters want to limit its business to that activity.



    Best to keep it simple and go with a LTD unless you have a JV.


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