The same procedures for forming a corporation apply to starting a real estate firm in Ireland. After the incorporation process is complete, the business’s founders may engage certified real estate agents and get the necessary licenses.
The primary actions needed to start the business
In the Republic of Ireland, the following are the primary processes necessary for commercial real estate business formation:
Decide on a corporate structure
The first step in forming a corporation is picking a corporate structure that works for you. This could be a partnership, a public limited business, or a private limited corporation.
Choose a business name
You must choose a distinctive company name after deciding on a business structure. There cannot be an existing Companies Registration Office registration for the name (CRO).
Create the business documentation
It is necessary to draft the company’s charter. This contains details about the company’s name, registration address, directors, and secretaries, as well as its financial accounts, among other things.
Register your business
You must fill out the relevant documents and submit them to the CRO to register your business. This will include information on your company’s name, address, directors, and shareholders, among other things.
Get a tax identification number
You must get a tax registration number from the Irish Revenue Commissioners once your business has been registered. You’ll be able to pay taxes and submit tax returns as a result.
Open a business checking account
You must open a business bank account in the name of your organization. This will be utilized to handle the financial operations of your business and collect client payments.
Legislations governing Ireland’s real estate industry
The Land and Conveyancing Law Reform Act, which represents the major legal regulations governing this sector, should be familiar to investors who seek to establish a business in the sector. The Registration of Deeds and Title Act of 2006 also governs the registration of this business in Ireland. The Succession Act is another piece of legislation that applies to this industry.
License requirements
In Ireland, all parties involved in this industry the employer, the real estate firm, and the employee need to have the appropriate licenses. The Property Services Regulatory Authority is responsible for issuing the license (PSRA). It is necessary for some services, such as those related to the leasing, buying, and selling of real estate, as well as the auctioning of other forms of property. According to the legislation, property management services include administrative tasks as well as those of the development or any component of it being improved, insured, serviced, or repaired. A business license application includes the following supporting documentation:
- The completed and signed application form
- Evidence of the senior officer’s credentials and proof of professional indemnity insurance
- A tax clearance report
- The company’s certificate of incorporation and certificate name registration (if applicable)
- Evidence of license fee payment
Irish taxes on commercial property
Other laws beyond those applicable for residential properties may apply when setting up a real estate firm that sells or leases commercial properties. Commercial properties are subject to taxes, just like residential structures, and depending on the tax, either the seller or the buyer may be responsible for paying the tax. The following are the main taxes assessed during the sale of a commercial property. Value-added tax, which can be assessed at a rate of 13.5% in certain types of transactions, and stamp duty, which is assessed at a rate of 2%. The stamp duty is calculated from the purchase price of the specific property. The buyer is also required to provide a deposit equal to 10% of the property’s value during the purchasing process.
