By Josephine Torres. 21st July 2014
AIB Bank has recently published a report on Foreign Direct Investment (FDI) in Ireland which highlights some of the reasons why multinational companies invest in Ireland and choose to incorporate their companies in Ireland. This is an interesting report which outlines the attitudes of start-up’s and multi-nationals towards Ireland and outlines many of the reasons why they have chosen Ireland as their European or International hub. It is well known that Ireland was recently voted by Forbes as the best country in the world in which to do business, but this survey helps us to find out why.
The Government Organisation ‘IDA Ireland’ allies with foreign investors to help them set up and develop their business. “Ireland has a small highly globalised economy, with a large exporting sector, and a significant number of multinational corporations with the country’s main export markets are the EU and the USA.” according to IDA Ireland.
PROXIMITY TO EUROPE IS VITAL
Looking at the country’s FDI impressive track record, it remains an attractive investment location as its current standpoints 12 out of the top 20 Global Internet companies are already located in Ireland along with 15 out of the 20 Financial Services firms, according to the survey.
It was interesting to see 86% of companies stated that access to Europe was critical or important in relation to their priorities for setting up in Ireland.
With 4 major reasons to invest in Ireland such as track record, talented workforce, technology and tax, the state also has other key advantages being an English speaking country in the EU zone and an EU member.
“If you had to summarise in one phrase why Ireland has been so successful at attracting foreign direct investment it is because – Ireland delivers.” Mark Redmond, Chief Executive, American Chamber of Commerce Ireland.
RENOWNED TRACK RECORD
As Ireland’s global reputation is becoming more popular as a destination to start up a company, the state offers foreign entrepreneurs a wide-spread incentives as they establish their business here than in their home country.
“Our IP laws are very, very strong. It is part of a collection of attributes that makes Ireland very much a unique proposition” says Bob Savage, Vice President and General Manager, EMC.
COMPETITIVE SKILLED WORKFORCE
“PayPal chose Ireland because of the large pool of talented and skilled people to hire from. Language skills were also important for us and the fact that Ireland attracts so many people from across Europe to live and work here is also a major advantage.” Louise Phelan, Vice President of PayPal’s Global Operations in Europe, the Middle East and Africa. It was noted that over 50% of Ireland’s population is under 35 years old, which is a very favourable demographic compared to most of the developed world. Another interesting finding is that Ireland ranks first in Europe for completion of 3rd level education.
Presently, Ireland is a home to many of the world’s leading well known high performance companies such as Google, eBay, Intel, Apple, PayPal, Amazon, Adobe to name a few, companies already located in Ireland automatically have barrier-free access to over 500 million consumers in the EU with Ireland acts as a natural gateway to this market which is critical for setting up small or big companies.
Ireland’s Corporate Tax is one of the top four reasons companies give for setting up in Ireland – IDA Ireland
Irish Minister for Finance, Michael Noonan on his Budget 2013 Speech said “The Government remains 100% committed to maintaining the 12.5% Corporate Tax Rate.”
According to Mark Redmond “The second really powerful aspect of our FDI success story is that we deliver access to the right people at the right time. This outstanding approach is led from the top – it is a hallmark of An Taoiseach’s (The Irish Prime Minister) drive to attract high value FDI that he gives his personal commitment to be available to any FDI employer of substance that needs his input.”
With other attractive factors such as outstanding quality of life, work and education, Ireland continue to impress foreign companies in the world which is why they are confident to start up their business in the country.
Ireland has again cemented its place as being one of the best countries in the world to incorporate a company. For more information on how to set up and incorporate a company in Ireland, please don’t hesitate to contact us at Company Bureau by calling +353 1 646 1625.