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Agency / Sales Distribution Company

An Irish company is formed specifically to operate as a nominee or agent for a principal company – in effect the Irish company acts as a fiduciary or agent for the principal company. The two companies sign an agreement which specifies the terms of the agreement between them. All business and sales is then conducted in the name of the Irish company, but on behalf of the principal company. The customer enters into a contract with the Irish company, is invoiced by them and pays the invoices into the bank account of the Irish company. Income is then remitted to the principal company by the Irish company after deduction of an agreed commission. The Irish company is managed and controlled by the principal company and its officers, as is the bank account of the Irish company. It should be noted that the Irish company cannot trade within Ireland or with any Irish businesses.

The Irish company will pay tax on the profits which it makes on the fees retained in accordance with the agency or nominee agreement. This will be at the normal Irish Corporation Tax rate which starts at 12.5%. Accounts must be filed both with the Irish Revenue Commissioners (Irish tax authority) and with the Irish Companies Registration Office (Irish public record of companies). VAT registration for a Irish agency company is available where appropriate. Beneficial owners of these companies must be non-resident for tax purposes in Ireland.