Caitlyn Buchanan, 11th November 2019
Ireland is a popular hub for foreign direct investment, currently home to 9 of the top 10 US international technology companies including Google, Apple, and Facebook. But forming a company in Ireland is not just for large multinationals, many small to medium-sized businesses are incorporated each day. At present, Ireland is home to more than 1,400 overseas companies operating in many sectors.
Benefits of Forming a Company in Ireland
Ireland is a European Union (EU) member state with low corporate taxes, a strong economy and attractive workforce, making it an attractive location to form a company. Both local and multinationals are attracted to Ireland which consistently ranks as one of the best countries in Europe to do business. Following the UK’s exit from the European Union (EU), The Republic of Ireland will be the only country in the EU where English is the main language. International companies continue to invest in Ireland because of its steadily growing economy where a large range of business can thrive.
Ireland is a relatively low-cost jurisdiction, and regulations are streamlined even for entrepreneurs who are not resident in the state. Upon incorporation, the minimum share capital for a limited company is just €1. Typically, an Irish company will incorporate with 100 issued shares of €1 each. If the company issues a share capital that is valued at under €1000, the amount can be held in cash and does not need to be paid into the company’s corporate bank account.
The Irish tax regime offers a low corporate tax rate of only 12.5% which can be reduced as low as 0% for companies who meet certain criteria. The scheme provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading. The standard Value Added Tax (VAT) is Ireland is 23% for products and services. When a company is registered for VAT, it may get a deduction for VAT incurred on its purchases. All sales made to customers outside the EU are VAT exempt.
Another very attractive feature of forming a company in Ireland is the 25% R&D tax credit that is available for qualifying research and development expenditure undertaken within the European Economic Area (EEA). Ireland holds extensive double taxation treaties with more than 70 countries worldwide and is ranked first in the world for attracting high-value investment projects. Popular fields of investment include engineering, life sciences and technology.
Favourable Irish tax rates aren’t the only reason multinationals choose to invest in Ireland. According to the latest report, Ireland’s population is the youngest in the EU and ranks first in the world for attracting young talent. Since coming out of recession in 2015 Ireland’s population has continued to grow with many people immigrating from abroad resulting in a large portion of the population who are fluent in more than one language. Ireland also has the second-highest percentage of the people who have attained a third-level education (43%), closely following the UK with (44%).
Form a Company in Ireland
If you are ready to invest in Ireland by starting your own private or a commercial venture, we are here to help. Forming a Company in Ireland is an easy process when you use an experienced and licensed formation agent. Company Bureau can have a limited company registered for you in just 2-4 business days and assist with obtaining a corporate bank account in 5-7 working days. Please visit our Procedure and Company Package page to learn more. For more information please don’t hesitate to contact our expert team on +3531 646 1625 or email firstname.lastname@example.org
Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change.