Advantages Of Forming A Company In Ireland

The advantages of locating a business in the Republic of Ireland can be summarised as follows:

Pro-Business Environment

The recent Business Environment Ranking of the Economist Intelligence Unit placed Ireland 11th globally out of 82 countries, naming it as one of the most attractive business locations in the world. A politically stable country and respected regulatory regime.

Furthermore, Ireland is considered to be a low bureaucracy, low tax environment that is very supportive of entrepreneurs. The World Bank’s “Doing business” Report rates Ireland as the easiest place in the European Union (EU) to start a business and as having the most business friendly tax regime of any country in Europe or the Americas.

Favourable demographics and consistent investment in education ensure a plentiful supply of highly qualified workers with excellent technical, language and customer service capabilities, as well as a reputation for flexibility and innovation.

While English may be the language of choice for most internationally trading businesses, Ireland also has ready supply of workers with multilingual skills.

The minimum issued share capital requirement for a Private Company, Limited By Shares, is just €1.00 which compares favourably with most other European countries.

A new company can be registered in just 1/5 working days from date of lodgement of the incorporation papers and does not require the opening of a bank account as part of the registration process.

Once a company has been established any subsequent changes, such as the allotment of new shares, changing directors, or amending the Constitution is easily recorded in the Companies Registration Office. Making any of these changes does not require attendance before a Notary Public or re-execution of deeds, as required in mainland Europe.

A key aspect of the Irish Government’s support for industry and R&D is an attractive and continually evolving tax system.

The key features of Ireland’s taxation system for companies are as follows:

  • A 12.5% rate of Corporation Tax on profits generated from trading activities in the Rep. of Ireland
  • A 25% Research & Development tax credit
  • A ‘Knowledge Box’ regime which is OECD compliant
  • An Intellectual Property regime which allows a tax write off for widely defined IP acquisitions
  • Access to a wide range of Double Tax Treaties
  • A very attractive Holding Company regime which includes participation exemption for gains on disposals of most shares
  • An ‘effective’ rate of Zero for foreign dividends (12.5% tax rate on certain qualifying foreign dividends with flexible onshore pooling of foreign tax credits)

See further on this topic details in our section Taxation in the Rep. of Ireland, and for further details about Ireland generally, you can download a very informative brochure produced by the Industrial Development Authority by clicking the button below.

Industrial Development Authority Brochure