need to set up a Ltd. company for contracting - is this a good deal ?

grahamor

Hi,

I am about to start contracting in the IT industry and the recruitment agency said i need to set up a Ltd company and not be a sole trader.

I went on to cro and filled in some info but didnt have a clue what i was doing to be honest. I found this company www.companysetup.ie and they seem to be able to do everything i need done. Has anyone use them before and does about €290 seem good value for this service ? (some other company wanted €550 for the same).

Also i think i need 2 directors for the company, can i make the other one up ?

Thanks in advance

p.s. i hate the cro.ie website

Nuttzz

i have used private research a few times in the past and they are good at what they do, there service really isnt any different to company formations etc who charge twice the price.

as for the second director, it has to be a real person so mam, dad, brother or sister might be options here for you, just keep all the shares for yourself though!

kluivert

grahamor wrote:

Hi,

Also i think i need 2 directors for the company, can i make the other one up ?

p.s. i hate the cro.ie website

You can set up a single member company - fill in a M1 Form.

frobisher

grahamor wrote:

Hi,

I am about to start contracting in the IT industry and the recruitment agency said i need to set up a Ltd company and not be a sole trader.

I went on to cro and filled in some info but didnt have a clue what i was doing to be honest. I found this company www.companysetup.ie and they seem to be able to do everything i need done. Has anyone use them before and does about €290 seem good value for this service ? (some other company wanted €550 for the same).

Also i think i need 2 directors for the company, can i make the other one up ?

Thanks in advance

p.s. i hate the cro.ie website

€290 is a good price. From what your saying you should probably form a single member limited company. It has all the benefits of being a limited company but one person owns the all the shares. You will need one other person to be a director but that doesn't mean they own the company in anyway. I would strongly advise not setting up the company yourself.

Can you make up a fictional director? The simple answer is to not do this under any circumstances. You might get away with it but you could alternatively be in a heap of trouble if you got caught. You would certainly be struck of from being a director again.

Graham

If you're only planning to contract short-term, an umbrella company may be more appropriate for you. It'll save you endless amounts of hassle with VAT returns, PAYE/tax, annual accounts, accountants, statutory records etc etc.

If you're going to be contracting for the long-term a limited company is definately the way to go, especially if you're on a higher rate (€€€'s).

For the last few years I've used Prima, initially as an umbrella company and then moving onto my own Limited company (they're now my accountants). They've handled both really well and they only look after contractors (www.Prima.ie).

Feel free to send me a PM if you have any specific questions.

*My only connections to Prima is as a customer, I have no financial interest or any other incentive for this post!