Registering a Construction Company in Ireland

By Simon O’ Connor, 29th Nov 2016 (updated 23 Nov 2018) 
The Irish construction industry is booming once again and is expected to record the strongest rate of growth across 19 European countries over the next two years. If there was ever a time to start a construction company now seems like the time to do it. However, before you get started there are certain steps you should follow in order to ensure a bright future for your new company.

Registering your Company

Registering a construction company in Ireland can become complicated and mistakes can become costly. For these reasons, the majority of people tend to outsource this task to a Company Formation agent such as ourselves. This is generally the fastest and most cost effective way to register a company.
A company formation agent will usually require 6 items of information from you before the process can begin. This includes:

The Company Name

A company name must be unique and distinguishable from any company currently registered in the country. There are also certain words which cannot be used unless granted special permission such as “Group”. We offer a free company name check service should you wish to check your desired name choice against those on the registry.

The Activities of the Company

Since the introduction of the Companies Act 2014, a Private Company Limited by Shares (LTD) may carry out any legal business they wish. However, you are still required to list the precise activities of your company by submitting the appropriate NACE code. A Formation agent will be able to help you with this.

The Company Directors

A director of a company is a person or body that has been appointed by the shareholders to run the company. A LTD company can have between 1 to 99 directors, but we would recommend that a company appoints no more than 5. At least one of the company directors must be an EEA Resident and all must be over the age of 18. The following information will be required for each director of the company:

• Full Name
• Nationality
• Usual residential Address
• Date of Birth
• Business Occupation
• Other Company Directorships
• If they are a PEP (politically exposed person)

The Company Shareholders

The shareholders of a company are essentially the owners. A LTD Company can have between 1 to 149 shareholders and must all be over the age of 18. The following information will be required for each shareholder of the company:

• Full Name
• Residential Address
• Amount of shares to be held

Company Secretary

An Irish Company must have a Company Secretary who is responsible for ensuring that statutory obligations are met with, such as ensuring Annual Returns are filed and maintaining the books of the company. A director of a company may stand in as the company secretary as long as there are two or more directors on that company. If it is a single director company a separate secretary must be appointed.
Registered Office
The Registered Office is the official address of the company and must be located within the Republic of Ireland. All official correspondence will be posted to this address.

Register for Tax

Once the company has been incorporated it should immediately be registered for the relevant taxes. By law, all trading LTD companies must register for tax and file returns with the Revenue.

In Ireland, there are three main types of taxes that a company can register for:

• Corporation Tax
• Value Added Tax
• Employers PAYE/PRSI

Corporation Tax

All LTD companies are required to register for Corporation Tax within one month of trading. It usually takes up to 2 weeks to register for this tax but may take longer depending on the volume of applications at the time. Currently, the Corporation Tax in Ireland is 12.5%

Value Added Tax (VAT)

A LTD is not obliged to register for VAT unless the company reaches certain thresholds – €37,500 for goods and €75,000 for services.  When your company is VAT registered you must include VAT on sales but may reclaim the VAT incurred on purchases. The standard rate for goods & services is 23% and the reduced rate for fuels, building services and take-out food is 13.5%.

Employers PAYE/PRSI

If your construction company will be employing staff, they will be required to be registered with Revenue. Your company will be required to collect USC, PAYE and PRSI on all staff salaries and the company must also pay PRSI at a rate of 10.75% for each employee.

Relevant Contracts Tax (RCT)

RCT (formerly known as C45) is a withholding tax to ensure those involved in construction are tax-compliant. The legislation obliges a contractor to retain tax from the amount payable to contractors/sub-contractors engaged to carry out relevant operations in the absence of specific Revenue authorisations. RCT is typically
Register with The Construction Industry Register Ireland (CIRI)
The CIRI was established to distinguish legitimate construction companies from those who bring down the reputation of the industry. To become a member of the register, construction companies must demonstrate they follow industry best practice and comply with the statutory regulations for the construction sector. All companies must meet the following criteria in order to be listed on the register:

• Comply with the industry Code of Ethics and Obligations
• Have 3 years’ experience in the construction industry
• Company with Irish tax regulations
• Enrol in continuous professional development (CPD)
• Comply with the health and safety regulations relating to the construction industry.
• Have the relevant insurance policies.
• Adhere to the latest building standards and regulations.
• Complete a CIRI induction course.

Employers PAYE/PRSI

If your construction company will be employing staff, they will be required to be registered with Revenue. Your company will be required to collect USC, PAYE and PRSI on all staff salaries and the company must also pay PRSI at a rate of 10.75% for each employee.

Construction Insurance

Construction Insurance is extremely important for any construction company due to the high risks involved. There are mainly four types of insurance policies your company may need.

• Public Liability Insurance – Protects your company from third party cliams (Not including your staff).
• Employers Liability Insurance – Protects your company from any liability arising from your staff during their employment with you.
• Tools Plant and Equipment Insurance – Protects your tools and equipment against loss, damage or destruction whilst on a contract site.
• Products Liability Insurance – Protects you from any liabilities from a Third Party, which may arise out of any products or materials which you sell or supply.

If you would like to register a construction company in Ireland, please do not hesitate to contact us on +353 16874519 or alternatively you can fill out our contact form and an expert will be in touch shortly.