How to register a new business

daveg

I want to register a new business (partnership). Can anyone advise me on:

1. How to register the company (I heard you can register on-line ?)
2. How do I register for VAT
3. What are my tax implications ?
4. Anything else I need to worry about ?

Thanks in advance.

Hobart

Originally posted by daveg
I want to register a new business (partnership). Can anyone advise me on:

1. How to register the company (I heard you can register on-line ?)
2. How do I register for VAT
3. What are my tax implications ?
4. Anything else I need to worry about ?

Thanks in advance.

Easiest way to do it, I've found, is to go to a companies register and they will do all of that for you, including VAT registration. Try these , I've used them before, should cost around €350 - €400. Your tax implications are the same as if you were an employee, presuming you will employ yourself, it might be easier just to setup a sole trader, depending on your turnover. Anything else, well yes, a lot of things. If you have specifics PM me and I try to help you if not talk to experts at the link I've provided.

jd

Originally posted by daveg
How do I register for VAT

Thanks in advance. [/B]

Rememebr you do not have to register for vat if your turnover is lesst han about 30k or so

Hobart

Originally posted by jd
Rememebr you do not have to register for vat if your turnover is lesst han about 30k or so

Depends on the business type. If you provide a service I think the threshold is around 30k. If you provide a product I think the threshold is around 17k. There was a thread on this recently.

daveg

Thanks for the replys so far.... As requested more details below:

Were bascially taking over an exsisting cybercafe. Annual turnover would be approx €36K. All we want to do is register the company and register for VAT so we can claim VAT back and pay tax on profits (anyone have any idea what we will have to pay).

it might be easier just to setup a sole trader, depending on your turnover.

Decided on partnership as it is myself and a friend who are setting up the company.

Hobart I might send you a PM if thats ok.

Dazzer

Give the Company's Registration Office a call on (01) 804 5200, they will talk you through everything you need to do

RainyDay

This Guide to Starting a New Business from McGibney's accountants might help.

Victor

Also use the search function for previous threads on these topics.

dmeehan

i would prefer a limited liability company instead of a partnership

the ltd. company provides better protection in case the business goes belly up (fingers crossed!!)

daveg

dmeehan I know what you mean. Problem is it is more expensive and I doubt we will be in a situation where we are owing thousands. Only possibility would be public liability.

PhilipMarlowe

Originally posted by daveg
... Annual turnover would be approx €36K...

No disrespect intended.... but, is this right? 36k Turnover?
And from this you have to pay costs, insurance etc. etc. and then split the remainder?

Victor

Originally posted by daveg
dmeehan I know what you mean. Problem is it is more expensive

In particular audit fees could be €3,000 per year.

daveg

No disrespect intended.... but, is this right? 36k Turnover?

Thats what its making at the moment. Were hoping to increase this (obviously). Our outlays (rent ect ect) are pretty low though.

In particular audit fees could be €3,000 per year.

Thats the LTD company idea out of the window then :rolleyes:

Another question... I spoke to an accountant friend yesterday. She said it would be very important to keep/show our turnover to be less than the threshold for VAT (50K for goods & 25K services). As we hope to sell/maintain PC's as well in the cybercafe we will be asked to make an approx ratio for goods/services. Anyway if we go over the threshold we have to pay VAT on everything - so should we do our best to make the books show less than the threshold ?

RainyDay

so should we do our best to make the books show less than the threshold

Not if you want to maintain your moral right to bitch about Haughey, Lawlor, Lowry and the rest of the shysters that have been ripping us off for years. To 'make your books' show any figure other than the one real figure is tax fraud.

It's wrong. :mad: It may well come back to haunt you (with interest & penalties). Just look at all the 'non-resident bank account' holders from the 80's who were sure (and their accountants/bank managers were sure) that they were onto a 'good thing' - They are now facing big bills from Revenue, complete with interest and penalties.

We just can't continue to maintain the 'nod & a wink' attitude to tax fraud in Ireland. Maybe if people paid their legitimate taxes, we wouldn't have so many problems with our "health system, roads, Eircom's monopoly and the state of our IT infrastructure, primary schools, the roads and the list goes on and on and on....." that you were complaining about in this thread.

Victor

Originally posted by daveg
Anyway if we go over the threshold we have to pay VAT on everything

You mean you will have to charge VAT, you are already paying VAT on everything.

Originally posted by daveg
Anyway if we go over the threshold we have to pay VAT on everything - so should we do our best to make the books show less than the threshold ?

There is a legal way you could consider, get your clients to buy direct from a manufacturer with you acting as agent. This won't always work, because of the different thresholds and it may also affect your margin / trade discount.

Sposs

try http://www.cro.ie/

Johnmb

To register a company, get a form A1 from the CRO (I think you can print them off the CRO web site). The price for registration is on the site (about €60 IIRC). Give them about a week, then start phoning them to get them to hurry up, otherwise you could be waiting a while. When you get your CRO number, just fill out a tax registration form (from your local tax office), they will post one out if you phone them. One form will do for PAYE, VAT, and Corporation tax. As for the audit fees, if you are a small company you don't need to have an audit anymore. Definitions etc of a small company can be found on the CRO site. All you need to do is be sure you can keep a set of accounts that will satisfy the revenue commissioners should they carry out a revenue audit (i.e. keep copies of all receipts and invoices, and buy a decent accounts package).

daveg

Rainyday... point taken. I'm just pissed cause I'm already paying 40% tax on my wages :rolleyes:

Victor

Originally posted by daveg
Rainyday... point taken. I'm just pissed cause I'm already paying 40% tax on my wages :rolleyes:

On a turnover of €36,000 split both ways, something seems wrong there.

RainyDay

Rainyday... point taken. I'm just pissed cause I'm already paying 40% tax on my wages

Yep - It's a bummer, ain't it - I don't think anyone ever manages to get really rich on PAYE wages...;)

I do applaud your entreprenurial spirit though. Best of luck with your new venture.

daveg

On a turnover of €36,000 split both ways, something seems wrong there.

Perhaps my understanding of the term "turnover" is wrong. I mean €36K is approx what the cafe will make total.... before deducting rent/ESB/Insurance ect ect

I do applaud your entreprenurial spirit though. Best of luck with your new venture.

Why thankyou

pclancy

can i ask you what software you're goin to use to run the cafe? something that tracks user time? planning to open one myself with plenty of gaming as well.

cheers,

daveg

can i ask you what software you're goin to use to run the cafe? something that tracks user time? planning to open one myself with plenty of gaming as well.

We have nothing in mind really. As we will be there the whole time we will keep an excel log file and mark when people come in and leave and charge them accordingly. I know there are some good time tracking software specifically geared towards cybercafe's but this can be expensive as you will have to 1 licence per machine. If you do a google search you'll probably find what you need.

Best of luck (so locg as your not setting up in Galway )

Victor

Originally posted by daveg
Perhaps my understanding of the term "turnover" is wrong. I mean €36K is approx what the cafe will make total.... before deducting rent/ESB/Insurance ect ect

Yes, that is what I meant, but how are you paying tax on that amount?

daveg

Yes, that is what I meant, but how are you paying tax on that amount?

36K = annual turnover. Deduct rent/ESB/Consuables/Wages ect...
Leaves us with profit = Y

We will then have to pay capital gains tax on amount Y. I think this is correct.

Johnmb

We will then have to pay capital gains tax on amount Y. I think this is correct.

Not capital gains tax, income tax and PRSI. Although if you register it as a company, then you'll be paying yourself a salary and will therefore be subject to PAYE and PRSI on a monthly basis.