CORPORATE LAWCorporate law is the study of how

shareholders, directors, employees,

creditors, and other stakeholders such

as consumers, the community and the

environment interact with one another

under the internal rules of the firm.

COMPANY SETUP

If you are thinking of starting a

business there are a number of issues

you need to consider. Different

supports and regulations apply,

depending on your particular situation.

You may be employed, unemployed or

someone who is coming from outside

Ireland to set up a business.

LEGAL STRUCTURES

You can set up a business as a sole trader,

as a partnership or as a limited company.

The type of structure you choose depends

on the kind of business you are running,

with whom you will be doing business and

your attitude to risk.

SOLE TRADER

It is relatively simple to set up as a sole

trader but if your business fails, your personal

assets could be used to pay your creditors. Your

main legal obligation is that you must register

as a self-employed person with the Revenue

Commissioners (see ‘Tax and PRSI’ below). If

you wish to use a business name you must

register your business name with the

Companies Registration Office.

PARTNERSHIP

: It is relatively simple to set up as a sole trader but

if your business fails, your personal assets could be

used to pay your creditors. Your main legal

obligation is that you must register as a self-

employed person with the Revenue Commissioners

(see ‘Tax and PRSI’ below). If you wish to use a

business name you must register your business

name with the Companies Registration Office.

LIMITED COMPANY

: It is relatively simple to set up as a sole trader but

if your business fails, your personal assets could be

used to pay your creditors. Your main legal

obligation is that you must register as a self-

employed person with the Revenue Commissioners

(see ‘Tax and PRSI’ below). If you wish to use a

business name you must register your business

name with the Companies Registration Office.

TAX AND PRSI

How your business is taxed depends on whether it

is incorporated as a company. If it is a company then

it is liable for corporation tax. New companies may

get tax relief on the first 3 years of corporation tax.

From 2011 the value of the relief will be linked to

the amount of employers’ PRSI paid by a company in

an accounting period subject to a maximum of

€5,000 per employee.

LEGAL OBLIGATIONS

The main legal obligation when becoming self-employed is

that you must register as such with the Revenue

Commissioners. You must keep accounts which record:

•All purchases and sales of goods and services and

•All amounts received and all amounts paid out

You must keep supporting records of the above such as

invoices, bank and building society statements, cheque

stubs, receipts etc.