Lowtax Network

Back To Top

Company Registration in Ireland

Healy Consultants Group PLC
09 September, 2014

Ireland is known to be a competitive business environment.  It consists of a young population, with the average age being 34.4 years, making it the youngest country in Europe in terms of population age.  Due to this reason, a business in Ireland would have full access to the most employable graduates throughout the European Union who are pro-business, possess a good track record, capable with technology, and full of talent.  Along with this, Ireland has one of Europe's fastest-growing economies.  Because an Irish company reflects a positive image, it is an impressive tool to promote to customers, suppliers, investors, and venture capitalists both in Europe and around the world.  The cost of property, labor and services are much lower than if you were to incorporate a company in a larger European Union state.  Not only is Ireland an ideal country to form a business, it is also an ideal headquarters for a European Union market.  This is because the first language is English, there is a highly skilled labor force, and numerous well-developed infrastructures including; ports, airports, and banking. 

There are three main company structures available to foreigners who are interested in incorporating a company in Ireland.  These three structures include: Limited Liability Company (LLC), Branch Office, and Representative Office.

One advantage of incorporating a business in Ireland is the tax.  Ireland is known to have be a low tax environment which is highly supportive of entrepreneurs.  Entrepreneurs who set up a company in Ireland are entitled to a three year tax exempt period if the business being conducted is a qualified trade, such as; medical, electronic equipment, and carpentry.  A double taxation agreement exists in Ireland which has been signed by 71 countries, 68 of which are currently in effect.  This agreement covers directs taxes, which in Ireland include income tax, corporation tax and capital gains tax.  This agreement instructs that all corporate profits must be taxed, and the shareholders of a business are subject to personal taxation when they receive dividends or distributions of these corporate profits.

A second advantage is the ease of opening a bank account and carrying out the actual business.  Ireland is not as bureaucratic as other European Union countries; therefore, there is not an over-concerned outlook on business procedures which would effectively disrupt the efficiency of a business operating.  Since Ireland is one of Europe's fastest-growing economies, the task of opening a corporate bank account anywhere in the world for an Irish registered company is an easy-going process. 

A third advantage of incorporating a company in Ireland is the legal perspective.  In order to form a business in Ireland, it is required that there are two directors involved, one of which must be a national of the European Economic Area.  However you may waive this EEA national requirement by placing a bond of 25,000 Euros.  For an Irish incorporated company to receive more foreign employment passes, the labor force must be made up of at least 50% EEA.  If one were to invest in Ireland by incorporating a business, this would allow for 100% foreign ownership.  The process of deregistering a company is guided by the government, and the completion process usually takes a minimum of six months.

However there are some disadvantages to incorporating a company in Ireland. I) If an Irish incorporated company has sales which exceed 55,000 Euros, then they must apply for value added tax (VAT), which has a rate of 23%.  II) In order to complete the formation of a company in Ireland, it is required that a European Union director is designated.  III) If you do not have the sufficient funds yourself to set up a company in Ireland, formation will be hard.  This is because Irish banks are de-leveraging; therefore, it will hard to obtain corporate finance. 

About the Author

Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com


« Go Back to Blogs

Blog Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »