Ireland company incorporation
Healy Consultants Group PLC
04 March, 2014
Ireland is one of the best place in Europe to start your business. As a jurisdiction with stable economy and favorable fiscal environment, Ireland is attracting more investors not only from Europe but all over the world. There are several strategic advantages to setting up a business in Ireland, such as:
1. If properly structured, Ireland company formation of an LLC is legally tax exempt on all international income if no Ireland source income is earned.
2. If the Irish company receives Ireland sourced income, Ireland corporate taxation rate is 12.5%, the preferred EU headquarters for multi-national companies. Irelands low corporation tax rate is an excellent way to book global profits while legally minimizing international tax.
3. Companies starting up in Ireland enjoy a 3-year tax exempt period. This relief can be claimed if the new company conducts a qualified trade including carpentry, medical, and electronic equipment.
4. Ireland is an ideal European headquarters to serve the EU because i) it is English speaking ii) Ireland has a good supply of skilled labour iii) Ireland has a well-developed infrastructure including ports, banking, and airports.
5. Having the youngest population in Europe with an average age of 34 years, Ireland has the most employable graduates in the EU;
For investors planning to do business in Ireland, there are several tax and accounting regulations to consider:
1. Irelands corporate tax rate is 12.5% on trading income;
2. For all non-trading income, a corporation tax rate of 25% applies;
3. Certain Irish incorporated private limited companies may be exempted from an annual audit if i) turnover is less than 7,300,000 ii) balance sheet total less than 3,650,000 iii) average number of employees is less than 50;
4. In Ireland the VAT rate is 23%. According to the Irish law, companies are required to apply for VAT if sales exceed 55,000;
5. Ireland has signed bilateral taxation treaties with 69 countries, of which 64 are in effect;
6. Companies with qualified R&D expenditures will generate a 25% tax credit for offset against corporate taxes;
Apart from the business aspects of Ireland company registrations, investors also enjoy other benefits including a developed legal system and an extensive double tax treaty network which is rapidly expanding. In the near future, Ireland will continue to attract more investors in all business sectors around the world.
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