There are a host of reasons why companies might want to set up a headquarters or a subsidiary in locales such as Ireland or Australia. The advantages range from low corporate tax rates to stable, pro-business economies centered in geographically advantageous locations. But with these benefits come a number of regulations and stipulations that one must navigate in order to keep your company compliant with local governance. Below are three key areas of concern to keep in mind if you are looking to incorporate abroad. By paying attention to these areas of regulation, you can ensure that your company stays compliant.
Why choose to incorporate in Ireland or Australia?
Here's a brief overview of the advantages a company can gain by choosing to incorporate in one of these locations. Ireland- Corporation tax rate is 12.5 percent, which is the lowest in the European Union
- European Union Member
- Only English-speaking country in the Eurozone
- Resilient and stable economy
- Impressive 26 years of consecutive annual growth
- Geographic location enables company to be well positioned for business in Asia
3 Steps for Incorporation Compliance
Now that we have reviewed some of the business benefits offered by these three locations, let's look at the necessary steps a corporation must take to remain in compliance. #1 Registration of Business The first step to incorporating a business abroad is registering it with the respective regulatory organization. For Irish companies, this regulatory organization is the Irish Companies Registration Office (CRO). Documents containing the proposed name of the entity, shareholders, directors and company secretary must be submitted to the CRO for approval. Proposed company names cannot be too similar to names of existing companies, they cannot be offensive and they cannot suggest state sponsorship. Check with the Irish Register of Companies, the Irish Business Names Register, and the Irish and EU Trade Markets register to make sure your proposed business name is sufficiently distinct. Any business name that is too similar to existing businesses or trademarks could incur legal action. In Australia, a similar process of name registration and approval must be completed with the Australian Securities and Investments Commission (ASIC). Companies begin this process by first registering with the Australian Taxation Office (ATO) in order to obtain an Australian Business Number (ABN). Companies wishing to file must submit documents detailing all corporate information with respect to directors and shareholders, and the proposed company name will go through a corresponding evaluation process. #2 Establishing a Board of Directors Both Ireland and Australia require that all companies wishing to incorporate establish a board of directors. Depending on the specific locale, the makeup of this board differs slightly. The management of Irish companies is almost always delegated to a board of directors. For most companies, the board must have a minimum of two directors, one of whom may be the secretary. LTD companies may have one director, but in these cases, there must be a separate company secretary. The directors are obliged to act in the best interest of the company and to ensure that the company is in compliance with Irish company law. At least one of the board directors must be a resident of a Member State of European Economic Area (EEA). Companies wishing to avoid the residency requirement may post a bond, which insures the company against fines for any offenses under company law or tax legislation. The Board of Directors for companies established in Ireland is responsible for maintaining various statutory registers, including:- Register of members
- Register of directors and secretaries
- Register of directors' and secretaries' interests in shares and debentures
- Register of debenture holders
- Select a suitable form of accounting and apply it consistently
- Make reasonable and prudent estimates and judgments
- Prepare the statements on a going-concern basis
Leverage Technology to Streamline Incorporation
The laws and regulations governing corporations are often complicated and difficult to navigate. Companies wishing to take advantage of the benefits offered by locales such as Ireland, Australia and Delaware need to be mindful of these regulations in order to keep their businesses compliant. Entity management software can streamline this process by simplifying and automating the many tasks involved in incorporating. Quality entity management software can minimize the time and workload of monitoring these specifications and maintain your company's compliance in the bargain.Media Highlights
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