What are the requirements and legal implications to create a holding company? What are the requirements and legal implications to register a holding company in Ireland? When business owners contact Coddan with a view to registering a limited company in the Republic of Ireland, they may do so in the light of some benefits of Irish holding company registration that are not available to someone who is running his or her business as a sole trader. These may include tax advantages and the opportunity to trade the company's shares on the stock market.
However, different requirements are expected of a limited company; there are different and more stringent rules and regulations and the company itself also carries a different legal status from the business of a sole trader. Therefore, it is important for the business owner to be aware of these legal differences when weighing up the choice between remaining as a sole trader and registering a private company.
The key legal difference between a sole trader and a limited company is that the latter is a separate legal entity from the company directors. This means that the limited company itself is liable if any debts are incurred. It also means that the limited company can bring legal action or have legal action taken against it in its own right. Moreover, because a limited company is a legal entity of itself, the company will continue to exist even if the original owner sells the company or resigns from running it.
Business owners who are looking into the possibility of setting up a limited company in the Republic of Ireland are well advised to seek legal advice about doing so. If they decide that registering a limited company is the way forward for them, they are obliged to register it with the Companies Registration Office, which will hold records of the new company limited by shares.