Benefits and problems

Benefits and problems of registering a company in Ireland

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  • Benefits and problems

    Benefits of Ireland company registration

    Ireland business registration advantageRegistering an Irish company is an ideal way to tap into one of Europe’s fastest-growing economies. The following information will help you determine whether registering an Ireland entity is advantageous for your business objectives:

    1. Our Clients will find it exceedingly easy to incorporate an Irish company because:
      • An Irish company can be setup with 1 director and 1 shareholder of any nationality in less than 1 week. Furthermore, the Irish law mandates no minimum share capital requirement for company incorporation;
      • Over the last years, the Irish government has taken steps to reduce red tape in the country. This has been reduced even further by the enactment of the Companies Act 2014 in June 2015;
      • As a result of the above, Ireland ranks i) 1st in the world for the efficacy of the country’s rules and regulations at encouraging FDI and ii) 17th in the world for ease of doing business in 2016.

    2. A properly structured Irish company is a highly-effective, tax-efficient corporate vehicle because:
      • The Irish corporate tax rate for investing in Ireland is among Europe’s lowest at 12.5%, making the country the preferred EU headquarters for new entrants to the Single Market. Consequently, an Irish company is an excellent way to book global profits while legally minimizing international tax;
      • A new Irish company may benefit from a 3-year tax exemption period if the business qualifies for the 12.5% corporate tax rate on its trading income. This exemption is granted under section 486C of the Taxes Consolidation Act 1997, introduced by an amendment in the Finance Act (No. 2) 2008. The Finance Act 2014 extended the exemption period to cover businesses commenced before December 31st 2015;
      • An Ireland business benefits from the country’s double taxation treaties with over 60 countries, including every major trading partner.

    3. In addition to the above, an Irish company will also allow certain miscellaneous benefits including:
      • An Irish business draws several benefits from EU membership including i) free movement of labor and capital ii) absence of withholding tax on remittances to shareholders in the EEA under the Parent-Subsidiary Directive and iii) free access to an integrated European market;
      • A business in Ireland will have access to the most employable graduates in the EU, as the country has the youngest population in Europe with an average age of 34.4 years;
      • It is easy to open corporate bank accounts all over the world to support registering an Irish company. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to open corporate bank accounts in Ireland for our Clients’ companies;
      • Because of the positive image of an Irish company, it is an excellent vehicle to promote to customers, suppliers, investors and venture capitalists in Europe and around the world.

    Problems with Ireland company registration

    1. In order to register a company in Ireland, a resident director in the EEA must be appointed. Alternatively, our Clients can avoid this requirement by depositing a bond or bank guarantee of €25,000 with the Irish government;
    2. For all non-trading income (rental income, interest and foreign income) an Irish business will be taxed at 25%, rather than the standard 12.5%. Also, an Irish business VAT at the rate of 23%. Furthermore, every resident company must register for VAT if sales of goods exceed €75,000, or if its sales of service exceed €37,500;
    3. Irish companies may suffer a higher corporate tax rate in the future because the country faces increasing pressure from the EU to raise its low corporate tax rate. The French and German governments in particular have criticized Ireland for competing unfairly to attract FDI;
    4. An Irish limited company is unlikely to get employment permit if it exceeds the 50% non-EEA nationals quota;
    5. It is very difficult to get corporate finance in Ireland because the banks are de-leveraging. Consequently, gaining adequate loans or other funding for a company in Ireland can be difficult for our foreigners.
  • Best uses for a Ireland company

    1. Ireland serves as an ideal headquarters to serve the EU market because: i) It is English speaking ii) has a skilled labor force and iii) has a well-developed infrastructure including ports, a stable banking system, and airports;
    2. Our Clients in the IT industry will be interested to know that Ireland attracts the world’s best IT companies, as it ranks 1st in the world for FDI bringing new technology into the country. Google, Twitter and Facebook have established their European headquarters in Ireland.
  • Similar low tax jurisdictions

Contact us

For additional information on our business registration services in Ireland, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
Ireland department of foreign affairs and trade Dublin chamber of commerce Central bank of Ireland Chambers Ireland - in business for business Chartered accountants Ireland Ireland companies registration office IFSC Ireland Immigrant council of Ireland Irish naturalisation and immigration service - department of justice and equality Inter trade Ireland - cross border business development and business support Ireland department of finance