Ireland’s reputation as a great place to set up a business has been bolstered by the 1000+ multinational enterprises with substantial operations based there. Attracting big brands like Microsoft, Google, Pfizer and Facebook make Ireland the best country in the European Union to do business. So what sets Ireland apart from other EU nations?
The most attractive part about investing and setting up a business in Ireland is the attractive tax regime, which is significantly lower than most of the countries, but there’s more on offer than just the tax incentives.
In this article, we look at the reasons Ireland is a huge attraction for businesses of all sizes, starting with the taxes.
Low Corporate Tax
When you compare the corporate tax rates of nations from across the world, you will see that Ireland has the corporate tax of only 12.5%, which is among the lowest in Europe and globally. The UK’s corporate tax rate is 19%, and that is a competitive rate though it is topped by Germany’s 15.9% and of course Ireland’s 12.5%. Hungry’s corporate tax rate is just 9% and Switzerland’s even less at 8.5%, however, Ireland has other tax incentives for business.
According to Investopedia Ireland only charges 6.5% for revenue associated with a company patent or intellectual property.
Research and Development Tax Credits
Businesses involved in buildings, machinery, plants, etc., are qualified for getting the tax credit if they have in-house research and development activities. They can get 25% tax credit against the tax liability of the current year corporation.
Ireland is known as a tax haven for another reason it allows companies to use transfer pricing to shift profits from high tax jurisdictions to low tax jurisdictions and thus lower the tax liability of the parent company.
Income Tax Exemption For Non-Irish
As per SARP or the Special Assignee Relief Program, employees from outside the country will be exempt from the income tax that they earn while working in Ireland. It is a big incentive for companies that are newly establishing in the country.
Ireland has a young population, and it has highly employable graduates. Therefore, you can expect a young and vibrant workforce who are adaptable and flexible. That is an attractive proposition for setting up a business in Ireland and the reason why 1000 multinationals have already taken the plunge.
Ease Of Doing Business
The openness and accommodating nature of Ireland’s business environment is conducive for doing business, which is why the country has become the number one choice for multinational companies to establish their headquarters.
There has not been even a single instance when companies were harassed by unfair tax policies. This is the kind of track record that gives assurance for companies to plan and execute their long term business goals.
Ireland has a long history of achievements in the field of technology and science, as they invest a lot of money on researching technological capabilities. That is why most of the established IT companies have their data centres located in the country.
English Speaking Nation
Unlike most of the European countries, Ireland is an English speaking nation. Therefore, most of the companies thinking about establishing a base in Europe choose Ireland. It allows them to run their business seamlessly, without having to worry anything about the language barriers that they could typically face in most other European countries.
Proven Track Record
Ireland is a country that offers seamless access to more than 50 million consumers in Europe. Almost all the multinational companies, which have invested out here, have been able to grow and expand their facilities due to increase profitability. Therefore, the country is seen as one of the safest places for making investments and achieving operational success.
Special Concessions For EEA Countries
Companies from countries in the EEA or the European Economic Area do not require any kind of permission to start conducting business in Ireland. They have programs like Start-up Entrepreneur Program and Immigration Investor Program that allows people from EEA and Switzerland to set up their business.
Registering a Limited Company When You’re Non-Irish
The best way to register for a company as a non-Irish is through a company formation agent.
Completing the formalities required for setting up a business can be time-consuming. Here is a list of what’s required.
- Certificate of Incorporation
- Company Constitution / Memo & Arts
- Share Certificates
- Company Officers Schedule
- Secure Document Storage online
- Booklets for Directors & Secretary
Outsourcing Company Secretary Requirements
If you want to get started on a low budget, then you could go for the company secretary service. The company formation agents will provide you with the dedicated office address and dedicated person to take care of your company secretary requirements.
By outsourcing you are secretary requirements to Ireland, you can have expert professionals take care of the tasks. More importantly, your company will be fully compliant with business formation laws.
Doing business in Ireland is attractive as a tax haven and it’s a great place to secure skilled workers. There is more to it though, as Ireland is a wonderful country to reside and enjoy a more easy-going lifestyle. Setting up there as a way to grow your presence in Europe makes perfect sense, particularly for American businesses.