IRELAND

SETTING UP IN BUSINESS

Introduction

Ireland may be a small country but it has become one of the EU’s biggest success stories. The so-called Celtic Tiger economy has powered ahead in recent years, fuelled by foreign investment, low corporate tax and a liberal approach to trade. Generous investment incentives complete an attractive package. No wonder that thousands of foreign investors have opened an Irish company – contact us to find out how you can open one too.

Are there other reasons to open up in Ireland?

There are plenty. Geography to start with – Ireland is perfectly positioned as a trade bridge between Europe and the United States. Secondly, it is a global e-commerce hub, boasting a truly world-class telecommunications network. Above all, it has a particularly beneficial tax environment with corporation tax fixed at 12.5% on all trading income, whether manufacturing or otherwise. If you need advice on tax planning in Ireland we can put you in touch with our team of local specialists.

What are the main types of company in Ireland?

There are four major kinds of business entity, and they are as follows:

	private limited company (PrC)
	public limited company (PLC)
	partnerships
	branches

What are the main features of a private limited company?

	most popular format for foreign investors
	no minimum threshold of share capital
	two directors and company secretary required
	one director to reside in Ireland, or €25,395 bond
	audited accounts to be filed annually

What are the main features of a PLC?

	the minimum share capital for a PLC is €38,092
	at least 25% of the authorised share capital must be paid up
	minimum of seven shareholders required
	audited accounts to be filed annually

What are the main features of a partnership?

	available as a general, limited or investment limited partnership
	general partnerships have unlimited liability
	limited partnerships have limited liability
	investment limited partnerships allow for double tax relief

How do investment limited partnerships (ILPs) work?

An ILP is useful for collective investment companies, having tax transparency which enables investors to secure double tax relief. Requirements include:

	one general partner must be an Irish incorporated company
	at least two directors must be Irish
	minimum share capital €100,000

What are the main features of a branch?

	foreign parent responsible for all liabilities of Irish branch
	branch required to register with Registrar of Companies
	minimum of two directors; accounts to be filed annually

How easy is it to recruit staff in Ireland?

Ireland has a well educated and motivated workforce but the economic boom has resulted in very high employment levels, particularly in electronics and IT. This poses a challenge for companies seeking to enter Ireland. There is a thriving recruitment sector, however, and we will be happy to help if you require advice on this – contact us.

What is the regulatory environment like?

Ireland’s rapid economic growth has prompted the government to streamline its regulatory infrastructure. Financial controls are now the responsibility of a single body, the Irish Financial Services Regulatory Authority. The overall regime is relaxed. There are no general restrictions to foreign ownership, capital and dividends can be freely repatriated and Ireland has bilateral tax treaties with many countries.

Are there financial incentives available?

The Irish authorities, in coordination with the EU, offer a broad range of incentives for international investors, including the following:

	capital grants towards the cost of land, buildings, plant and equipment
	employment and training grants to promote job creation
	research and development grants

And what about banking facilities?

Ireland is emerging as a major international banking centre in its own right. The main national clearing banks offer a full range of services, including foreign exchange and hedging, while many international banks are represented here for commercial lending and foreign exchange facilities. Opening a bank account is just about the first step you will need to take if you establish a company in Ireland, and we will be happy to help you with this.

How can I get more information?

Our company formation service makes it easy for you to open a company in Ireland, so please contact us for further details.