Are you a seasoned contractor contemplating the next phase of your career? As a contractor with valuable skills and experience, establishing your own Personal Limited Company opens doors to personal and professional growth. Making the decision to set up your personal limited company is an investment in your future. This transition allows you to take charge of your career trajectory and shape it according to your aspirations. In this blog post, we'll guide you through the process of setting up your personal limited company, shedding light on the benefits that come with this strategic switch.
The Transition from One Project Contractor to Building Your Own Independent Business
Why Consider the Shift?
1. Flexibility and Autonomy
Imagine having complete control over your business income, allowing you the flexibility to receive funds even during breaks from contract work. By opting for a lower monthly salary and storing income in your company account, you can take breaks, spend time with family, or enhance your skills without financial strain. Retaining company profits and strategic financial planning can also lead to significant tax savings for long term contractors, allowing you to keep more of your earned money in your pocket!
2. Building a Contractor Brand and Reputation
As an independent professional, your brand is a powerful asset. Recruiters and consultants want to work with independent professionals that they can trust and depend on to carry out the required task. Creating a business provides an opportunity to shape and strengthen your contractor brand, fostering a reputation that resonates with both current clients and potential future contract opportunities. Cultivate your brand through networking, engaging in your industry, and establish an online presence, including having your own website and building out your social platforms for your limited company. It might be the best step you take to propel your career forward.
3. Ability to Work with Multiple Clients and Pursue Other Business Interests
Many of our clients have started their Private Limited Company with the goal of paying less tax on their contract role and somewhere along the way to achieving this goal, they come across a separate opportunity or idea that translates into multiple sources of income. Or alternatively, maybe your success to date as a contractor has resulted in an influx of project offers and you are now looking to build your client base further and work with different companies. Whether it's e-commerce, training, advisory work, or investments, your company can serve as a hub for diverse business interests, or to engage with multiple clients, reducing risk levels associated with relying on a single income source.
4. Ability to Hire Others
As your experience and market presence grow, the volume of work you receive may increase. Establishing your Personal Limited Company allows you to hire employees to assist with project tasks, administrative work, or even marketing activities. This delegation enables you to focus on contract work while your employees handle other business activities.
Understanding the Process of Setting Up Your Personal Limited Company
Embarking on the journey to establish your Personal Limited Company is a transformative step towards unlocking your full potential. Investing in your future and understanding the process positions you for success in the dynamic world of independent professionals. Ready to take the leap? Reach out to your dedicated account manager, or our team on 01-8077106 and we we’ll be happy to take you through the process. We'll walk you through the steps to ensure a seamless transition from your current contracting solution.
Here’s what you should consider when setting up your own Limited Company
Incorporation and Tax Registration Fee: A once-off fee of €229+VAT, along with a separate €20 (non-vatable) fee for your B1 submission will apply.
Company Name: Must be unique and distinguishable from all other Irish Registered Companies.
Registered Office: Required for a Personal Limited Company, located in the Republic of Ireland. This address can be your residential address.
Business Bank Account: Unlike umbrella company solutions, a Personal Limited Company requires a business bank account under the company name. This can be organised once you receive the cert of incorporation.
Director and Secretary: If opening a company limited by shares, you can act as the sole director but must appoint a second individual as the company secretary.
Turnaround Time: Despite the current 8-10 week turnaround time for a complete company set-up, including your tax registration, you can receive your certificate of incorporation within 5-7 working days, depending on your requirements.
So now you have learnt all the benefits, reach out to the team and dive into starting the process. Your future as an independent professional starts here!