In Ireland, the companies established are required to perform accounting activities in pursuant to the legal requirements stated by the Irish Generally Accepted Accounting Principles (GAAP). It becomes essential to perform the accounting procedure with the assistance of Irish accountants, who have proper knowledge of the latest changes that may appear during the years. However, the general principles under which this approach is performed remain the same. Our team of Irish lawyers can assist foreign investors with the legal requirement.
Accounting procedures for small companies in Ireland
The Financial Reporting Council (FRC) is the main statutory body in terms of accounting and a modification in the accounting standards has recently been applied to small companies. Changes in the accounting standard were simplified for the ease of small and micro-companies set up in Ireland. Our Irish attorneys can provide details as the FRC imposed the new regulation as an effect of a European Directive and hence referring it to an Accounting Directive for such entities.
FRS 105 for small companies in Ireland
The Financial Reporting Standard applicable to small companies (FRS 105) represents the implementation of a new accounting standard. The accounting standard is available for small and micro-enterprises under the provisions of the Companies Act. The turnover of the company can be of maximum GBP 632,000 even if the sum of the employees is 10.
The FRS 105 has been applicable since the 1st January 2016 and represents a simplified way to conduct accounting activities and which refers to the presentation of the company’s assets and liabilities.
Business forms can be registered in Ireland
- Private company limited
The Irish private limited liability company is formed by members whose liability is limited to the amount stated by the memorandum of association and to the extent of their initial contribution. It is the most common business form registered, and one founder is mandatory to incorporate this type of entity.
- Public company limited
A public company limited by shares and its shares registered at the Stock Exchange and have no restriction on the number of shareholders. At the disposal of the company, at least 25% out of EUR 38,000 must be paid up at registration
- Companies limited by guarantee
Companies limited by guarantee, such companies don’t have a share capital and are usually set up to provide corporate protection to entities such as sports clubs, charities or trade associations. Every year these companies are required to submit audited accounts at the Companies Registration Office and must have at least seven members.
- Limited liability partnership
In Ireland, a limited liability partnership consists of at least one general partner and one silent partner. Here the partner shouldn’t exceed more than 20 people, and however, if the business operation is related to the banking sector the members shouldn’t be more than 10. The partnership can be incorporated by corporate bodies or by people; however, the general partners are liable for all the debts and obligations of the entity.
- General partnership
It is formed by members with full liability and the same decisional powers in the enterprise. In this, the partners will enter the liquidation procedure, and their personal assets are not protected.