A sole trader and a limited company are different legal and tax persons. Registering an LTD does not automatically move the existing business into it, so an affordable transition needs more than ordering a low-cost incorporation.
StartCompany.ie can handle the core company formation from €240 total. The founder should separately plan the date on which contracts, invoicing, assets, insurance, registrations and business records move to the new company.
What changes when the company is formed
The company can enter contracts, own assets and incur liabilities in its own name. The former sole trader becomes a director, shareholder, employee or lender depending on the arrangements made. Customers and suppliers should know which legal person they are dealing with.
Existing contracts may need consent or novation. Bank accounts, card processors, insurance, licences, leases and data-protection notices may also need new company details.
Keep the incorporation cost clear
For a straightforward resident formation, StartCompany.ie’s €240 total includes the CRO fee, certificate, constitution and share certificates. That makes the legal creation of the company predictable even though the wider business transition has additional costs.
Do not compare the package with a bare €50 CRO fee unless you also value the time needed to prepare and check the application and formation documents.
- Confirm the new company name and ownership.
- Choose the last sole-trader invoice and first company invoice dates.
- Review asset and stock transfers with an adviser.
- Open company banking and bookkeeping records.
- Update contracts, insurance and registrations.
Tax issues need separate advice
Profits earned before the transition remain part of the sole trader’s position. Salary, dividends, director loans and company profits after the transition follow different rules. Assets transferred at undervalue or goodwill moved into the company can have tax consequences.
Ask an accountant to model the change using expected profit, drawings, pension plans and administration costs. Incorporating solely because the corporation tax rate looks lower can produce a misleading comparison.
Avoid paying twice for compliance
List the first-year filings before selecting a formation package. If you need an IPN and first annual return service, Standard may reduce the number of separate purchases. Premium adds further address and company-secretarial support.
The right formation package is still only one part of the budget. Include bookkeeping, annual accounts, tax returns, payroll where relevant and any industry licence required by the trading activity.
StartCompany.ie service
Basic Company Formation
Current listed price: €240 total
Official information and next steps
StartCompany.ie provides preparation and filing support for the service described above. Final acceptance, registration, tax treatment or court approval remains with the relevant authority. Check the current official guidance before acting, particularly where a deadline, tax position, dispute or unusual transaction is involved.