I survived Tayto Park. The roller coasters were great fun except for getting a pain in my brain after the second go on Cu Chulainn. Between the speed and the vibrations, it was crazy. The new Dino Dash was brilliant. Short, fast, and my favourite. I hated every minute of Power Surge, dangling upside down and praying for it to finish. Went on the Honey Pots with my youngest and all that spinning around after lunch is not a good idea. It’s a serious, fun day out and well worth a visit.
Last week we looked at tax tips if you are selling assets. Find out ways to reduce your Capital Gains Tax.
This week we will explore pricing and the cost of setting up a company with us. It is a question we are often asked by our clients and prospects. Whether you are moving from a sole trader to a company or setting up a new company to trade you want to know the price.
We will look at
- Company formation agents’ fees
- Tax registration
- Our fees
- Why pay us more?
- Why a company
Company Formation Agent fees
Typical formation agents’ fees are in the region of €150 to €300 plus Vat. Have a google and you will find all sorts of price ranges. When setting up a company for our clients the formation agent we use costs us €250 including Vat. Of that cost, the Companies Registration Office [CRO] charges €50. This price is good value as they are very responsive, very helpful and deal with the CRO to get the company set up. They will check out company names for us and give us a timeline of when the company will be ready. They will provide us with all the formation documents like
- Cert of incorporation
- Share register
- Company seal
- Company constitution
You will need to get your company registered for taxes. As a company, you will register it for Corporation Tax. If you have employees, you will register as an employer for PAYE. Are you supplying Vatable services or selling products? If so, and you exceed certain turnover thresholds, then you will need to register for Vat. Corporation Tax and PAYE registration can be straightforward and Revenue are very responsive. Vat registration can be slower from Revenue. They are reluctant to grant Vat registration without getting enough support information.
A typical tax registration charge is from €75 to €150 plus Vat.
Our usual fee for setting up a company for you is €500 plus Vat. We follow a 5-step approach which is
- An initial consultation
- We complete all the paperwork for you
- Company name search to see if the name you want is available
- Correspondence with the Company Formation Agent
- Your company is set up as fast as possible
Once set up we get the tax side of the house to register the company for taxes.
We will also register the company on the Central Register of Beneficial Ownership. This is a legal obligation, and all companies must register within 5 months of set up. This is becoming more important and banks and other stakeholders look for this.
Why pay us more?
Our fee range to offer you a complete setup service is €800 to €900 plus Vat. The fee for the last 3 companies we set up was €850 plus Vat. Why would you pay us more when you can do this yourself or go to a formation agent?
If you do this yourself, do you know
- How many directors do you need and a company secretary?
- What shareholding you should have if there is more than one owner if it is a husband and wife or civil partners?
- The number of shares you should issue
- What taxes to register for, from when, and how
- How to register the company on the Central Register of Beneficial ownership
You can find out how to do this but there is a time cost. And a security cost too. You want to know that your company is set up right.
Why a company?
One of the reasons for setting up a company is to become more tax efficient. Doing this will give you more flexibility to grow, take on employees and invest in your business. Down the line, you could sell your company or transfer it to the next generation.
Getting it right from the start can help you maximise tax benefits in the future. You must have certain shareholdings to get Retirement Relief or Entrepreneurs Relief. We have seen the downside of this where the shareholding structure didn’t work.
There are many things to know when setting up a company. Part of our values is to protect you and be proactive. This is the reason we offer a complete package. It’s an important business decision and investment for you and it must be right.
Need help setting up your company? If so, start here