Ireland company registration

DOING BUSINESS IN IRELAND

Since 2003, Healy Consultants Group assists our multi-national clients with i) company registration and multi-currency corporate bank account opening, ii) legal, accounting and tax considerations, iii) Government grant assistance and iv) securing business premises and employing staff.

Choose Healy Consultants for your Irish company setup needs and benefit from our customized services, expertise and exceptional support.

Contact us today to explore how we can support your business in Ireland.

Ireland company formation guide: Table of contents

Benefits and problems with doing business in Ireland

Advantages with Ireland company registration

  • Because Ireland is an English-speaking gateway to European markets, a large number of global and U.S. businesses use Ireland as their EMEA headquarters. The first attraction and perhaps one of the primary reasons for doing business in Ireland is the fact that it is so easy compared to other European countries. Other benefits include:
    • There is free movement of goods and services within the EU and its 500 million plus consumers including i) duty-free importation of goods from other EU countries and ii) goods exported from Ireland are exempt from VAT and customs duties and iii) most categories of services supplied to customers located outside of Ireland are exempt from Irish VAT; and
    • Being the only English-speaking common law jurisdiction in the European Union (EU). Ireland’s legal system has a robust and long-established regime for the domestic enforcement of judgments. Irish judgments can be enforced across EU member states under the Recast Brussels Regulation; and
    • Clear employment laws and access to a young, highly educated, English-speaking workforce; and
    • Ireland has a very stable political system and there are generally no restrictions on foreign investment into Ireland; and
    • There is no exchange control nor currency regulation in Ireland. Consequently, there are no restrictions on the repatriation of earnings, capital, royalties or interest. Repatriation payments can be made in any currency. Under double taxation treaties, there is no Irish withholding tax on overseas payments by an Irish entity, including dividends and interest and and patent royalties; and
    • Ireland has a well-developed and highly sophisticated banking system, providing quality customer service. Irish based banks offer sophisticated financing products including overdraft, lines of credit, term loans, invoice discounting, factoring, leasing, structured finance, letters of credit, commercial paper and bonds; and
    • IDA Ireland is the primary government agency for the promotion of inward investment. It owns industrial parks with purpose-built factories which are ideal for new projects where our Clients’ do not wish to construct their own premises. IDA has partnered with over 1,600 entities to establish and expand their Irish presence; and
    • Part of the IDA incentive packages include state financial assistance in the form of grants including i) capital grants contributing towards the cost of fixed assets such as site purchase and buildings and new equipment and ii) employment grants to companies which will create jobs and iii) training grants to cover the full cost of certain training initiatives including trainees’ wages, travel and subsistence expenses and iv) R&D grants in respect of approved research and development work, including product and process development, feasibility studies and technology acquisitions. Grants are generally paid after the relevant expenditure is incurred. When a claim for a grant payment is received by the IDA, it is assigned to a designated executive who liaises with the client company – to ensure that the grant is paid as quickly and efficiently as possible. The availability and level of grant assistance is largely dictated by the geographical location of the project within Ireland. It is only in exceptional circumstances that grant assistance is available in the Dublin area. The highest levels of grant are available in the border regions with Northern Ireland, the midlands and western regions of Ireland; and
    • Enterprise Ireland is an Irish state agency providing a range of funding and supports available to companies at varying stages of development; and
    • To attract foreign talent to Irish companies, a Special Assignee Relief Programme (SARP) provides relief from income tax on the earnings of key employees, who are assigned to work in Ireland from abroad. The relief is a tax deduction up to 30% on Irish employment income exceeding €100,000 and less than €1 million; and
    • Irish employees seconded abroad can benefit from the Foreign Earning Deduction (FED). The FED scheme is designed to assist Irish companies seeking to expand into certain specified relevant countries. A portion of the employment income (up to a maximum of €35,000) will be exempt from Irish tax; and
    • Ireland has a reputation and a proven track record as a successful location for established and high-growth multinational companies. One third of multinationals in Ireland have had operations in the country for over 20 years, illustrating the longevity, resilience and commitment of these companies to Ireland. Home to 9 of the top 10 US technology companies, 9 of the world’s top 10 pharma companies and 20 of the world’s top 25 financial services companies; and
    • Ireland has strict laws protecting patents, trademarks, copyright, registered designs, trade secrets; and
    • The 2023 IMD World Competitiveness Ranking named Ireland the second most competitive economy in the world and the first in economic performance.
  • Ireland has attracted worldwide leaders in areas such as pharmaceuticals, biotechnology, medical devices and financial services. Twenty-four out of the twenty-five pharma and biotech companies also have stable operations in Ireland. The country is a magnet for multinationals that enjoy a lot of European accounting and tax benefits including:
    • The corporate tax rate in Ireland is set at 12.5 percent. This low rate is legitimate and fully consistent with European policy and accepted by the European Commission as not representing harmful tax competition; and
    • An Irish holding company disposing of shares in a subsidiary company is exempt from Irish capital gains tax; and
    • There are broad exemptions from Irish withholding tax on interest, royalties and dividends. Generally, no Irish withholding tax obligation will arise where the recipient is located in an overseas tax treaty country or an EU member state; and
    • Ireland has signed comprehensive double tax treaties with 73 countries, including treaties with all EU member states, the US, China, India and all OECD member countries; and
    • Companies that export 75% or more of their output can apply to the Revenue Commissioners for authorisation to receive almost all of their goods and services from Irish and foreign suppliers free from any VAT charge. This reduces administration and the need to get a VAT refund; and
    • Ireland offers a refundable corporation tax credit of 25% for qualifying R&D expenditure undertaken within the EEA. A tax credit is also available for construction or refurbishment work carried out on a building used for qualifying research and development activities. The credit is equivalent to 25% of the qualifying cost of construction or refurbishment and may be claimed in full in the year of expenditure; and
    • When calculating corporation tax, capital expenditure incurred on intangible assets acquired for the purposes of a trade can be offset against taxable income. The definition of intangibles for the purposes of the relief was very widely drafted and includes goodwill directly attributable to intangibles; and
    • There are no company registration taxes (capital duty) and there are broad exemptions from stamp duty on intra-group transfers, reconstructions and mergers and transfers of IP. Ireland does not impose a stamp tax in respect of debt or equity financing; and
    • Group relief may be claimed where one member of a group of companies is entitled to surrender its trading loss to another member of the same group. Group relief is available to Irish companies in respect of trading losses incurred by their non-Irish subsidiary companies that are resident in EU member states and EEA states with which Ireland has a double tax treaty; and
    • Ireland does not levy withholding tax on professional fees paid across border; and
    • Foreign companies in Ireland are exempt from corporation tax in respect of interest received from certain Irish government securities; and
    • The government charges a low corporate tax rate of 6.25 percent for revenue that is tied to a business’s patent or intellectual property; and
    • Ireland is recognised as one of the best countries in the world for ease of paying taxes and regularly tops charts for the most effective EU country in which to pay taxes; and
    • Pre-trading expenditure incurred in the 3 years prior to the commencement of trading is deductible for tax purposes; and
    • Dividends received by an Irish resident company from another Irish resident company are exempt from corporation tax; and
    • Overseas dividends received by an Irish resident company are taxed at 12.5%, if the dividends are paid out of trading profits of an EU company or a tax treaty county. Credit for foreign tax suffered is also available; and
    • Onshore pooling of tax credits is allowed for certain foreign interest, branch profits and dividends. Effectively this means that it will be usually possible to eliminate any Irish tax on the repatriation of profits to Ireland; and
    • Interest paid by an Irish company to a non-Irish resident is exempt from Irish withholding tax when i) the interest is paid by a company in the ordinary course of its trade and ii) paid to a company which is tax resident in an EU member state or iii) paid to a double taxation agreement country; and
  • Over the past decade, substantial efforts were made at a political level to establish Ireland as the preferred location for e-commerce, technology and intellectual property-based industries. Sixteen of the top twenty global tech giants have firms in Ireland. Ireland is committed to a light, flexible, enterprise friendly e-commerce regime. The country adopts a technology neutral approach in its legislation and regulation. Consequently, the country is the global technology hub of choice when it comes to attracting the strategic business activities of ICT companies, earning the reputation for being the heart of ICT in Europe because:
    • Some of the world’s most cutting-edge companies have invested in Ireland including i) 6 of the top 10 companies on Forbes’ 2023 list of The World’s Most Innovative Companies have Irish operations and ii) Ireland is one of the world’s leading Research, Development and Innovation (RDI) locations and iii) Ireland is 12th in the global scientific ranking; and
    • Ireland offers an OECD compliant, modified nexus Knowledge Development Box (KDB) that offers a 6.25% corporation tax rate on profits derived from intellectual property (including patents and copyrighted software) where the R&D takes place in Ireland; and
    • Ireland is a signatory to The International Convention for the Protection of Industrial Property (Paris Convention) pursuant to which each convention country must grant, as regards intellectual property rights, the same protection to nationals of all other convention countries as it grants to its own nationals; and
    • The country is also positioning itself to become a world leader in the Internet of Things, Big Data, ICT Skills, Energy Efficiency, Health Innovation and Cloud Computing; and
    • Although Irish patent legislation specifically excludes “computer programs” from patentability, this exclusion is interpreted narrowly. As with the European Patent Convention (see below), the Intellectual Property Office of Ireland (IPOI) will grant patents for inventions requiring the use of software to achieve their purpose; and
    • Ireland has ratified the European Patent Convention (EPC) and the Patent Cooperation Treaty (PCT). Patents can therefore be applied for through the EPC system, the PCT system, or through the IPOI. The EPC system enables applicants to secure patent rights in a number of European countries by way of filing a single application to the European Patent Office. When granted, this application results in a bundle of national patents in the designated countries; and
    • The EU Database Directive on the legal protection of databases was implemented in Ireland. Irish law provides that copyright subsists in original databases, the period of protection lasting until 70 years after the death of the author, regardless of when the work was first lawfully made available to the public; and
    • Ireland has implemented EU Directive on the Legal Protection of Topographies of Semiconductor Products (87/54/EEC), which affords protection to the design and the layout of the elements composing a semi-conductor product.
  • For companies which license out their IP to third parties, Ireland is a quality location to establish an IP holding company to effectively manage and exploit IP. Ireland’s robust legal system protects intellectual property including patents, trademarks, copyright, registered designs, design rights, inventions, domain names, supplementary protection certificates or plant breeders’ rights. Specifically, some IP benefits include:
    • A company licensing its IP out of Ireland enjoys a 12.5 % corporate tax, providing there is relevant substance, management and control in the Irish operation and the royalty income relates to Irish activity. In order to qualify as an Irish IP trading company, an Irish company will need to carry out a number of the following activities i) development of intellectual property and ii) legal protection and contracts and iii) financial management and taxation and iv) administration and billing and v) trademark/brand enhancement and vi) marketing and promotion and vii) licensing and viii) business development; and
    • Companies carrying on a trade can claim tax depreciation on the capital cost of acquiring qualifying intellectual assets over the qualifying life of the asset, subject to a cap of 80% of the cost of the asset for assets acquired. Companies can effectively write capital expenditure off against the income streams that the expenditure generates. Any excess capital allowances can be carried forward indefinitely for set off against future profits; and
    • There is no stamp duty on the transfer of certain IP assets; and
    • An OECD-compliant IP box regime known as the Knowledge Development Box (KDB), which provides for an effective 6.25% rate of corporation tax on Irish resident companies’ profits from qualifying assets including patents, computer programmes and some intellectual property. To qualify, a company must create a usable qualifying asset from qualifying Research & Development activities that earns income. A qualifying asset is an asset created from R&D activities. Examples of these assets include i) a programme for a computer and ii) intellectual property for small companies which is certified by the Controller of Patents as patentable but not patented and iii) an invention protected by a qualifying patent; and
  • Over the past 30 years, Ireland has nurtured a talented workforce. Consequently, the country is ranked first in the world for the flexibility and adaptability and productivity of its employees. Consequently, multi-national companies benefit from:
    • Irish people having a strong work ethic that is reflected in the low rate of employee turnover, well below the European average. Positive demographics help Ireland boast the youngest population in the EU (40% are under the age of 30); and
    • Ireland’s education system is ranked amongst the top ten in the world and the country has one of the highest percentages of population who have completed third level education. The share of 34 year olds in Ireland with a third level qualification is 53.5%, compared to an EU average of 40%; and
    • A conveyor belt of skilled science and technology graduates fuel Ireland’s thriving Internet sector. In turn, the innovation and creativity developed within the sector helps Ireland become an internationally recognised hot bed for skilled multilingual tech talent; and
    • Ireland is implementing a comprehensive and forward-looking National Skills Strategy and Action Plan for Education, which aims to make Irish education and training the best in Europe by 2026; and
    • Ireland combines competitive salaries with a high standard of living, which attracts talent from every corner of the world and makes the country one of the most productive economies in the EU; and
    • The Work Life Balance and Miscellaneous Provisions Act 2023 provides employees with a legal right to request remote working. The act also transposed the EU directive on work-life balance for parents and carers into Irish law, the aim of which is to increase the participation of women in the labour market and to encourage a more equal sharing of family related leave between men and women. It provides for a right to request flexible working arrangements for caring purposes and provides five days’ statutory unpaid leave for medical care purposes and five paid days’ leave for victims of domestic violence; and
    • Strong and diverse multilingual skills – 17% of Ireland’s workforce is international and over half a million Irish residents speak a foreign language fluently; and
    • EEA, UK and Swiss nationals can work in Ireland without requiring a work permit.
  • Ireland has a tax-exempt regime for regulated investment funds and a regime to facilitate international financial transactions including securitizations. Investment funds within this regime are not subject to Irish tax on income or gains. Furthermore, there is no withholding tax on distributions, redemptions or transfer of units where the investor is i) non-Irish or ii) an exempt Irish investor and iii) the required declaration is in place. Funds are hugely important to the Irish economy, and Ireland is now the largest alternative investment fund center in the world. Ireland administers 40% of the world’s alternative funds. It’s a major fund jurisdiction for U.S. managers wanting easy access to European assets and investors, and a center of excellence for the administration of funds, even when they are domiciled elsewhere. The popular Irish collective asset-management vehicle (ICAV) is a regulated fund with high levels of investor protection. An ICAV is a new and flexible corporate fund structure which is not subject to Irish company law but is governed by bespoke new ICAV legislation. An ICAV operates as a corporate vehicle which is fully exempt from Irish tax on income and profits and may be particularly attractive to US investors as it should be entitled to “check the box” to elect to be a designated entity for US domestic tax purposes. Furthermore, there is also the investment limited partnership (ILP), designed for sophisticated investors in private equity, private credit, real estate, infrastructure, and real assets. Ireland has special tax regimes for regulated investment funds and unregulated securitisation companies that are efficient, clear and certain; and

Problems with Ireland company registration

  1. Because there are so many multi-national companies in Ireland, there is a shortage of quality employees for smaller companies. Around 90% of Irish SMEs struggle to recruit or retain employees who have the right skills and qualifications, especially in customer-facing and managerial roles; and
  2. Ireland is the fifth most expensive economy in the EU, according to the National Competitiveness Council. Elevated costs for labor and property can be a significant hurdle for some businesses. Many SMEs and startups are met with the challenge of limited rental options and high rental prices; and
  3. At least one of the directors of an Irish company must be resident in the European Economic Area (EEA), unless the company obtains a bond to the value of €25,000 as security for compliance with Irish tax and company law; and
  4. VAT may be payable on the sale of a commercial property, and the buyer usually bears responsibility to discharge that liability. A lease of commercial premises is likely subject to a VAT charge on the rents payable; and
  5. An Irish tax resident ‘close company’ is a company under the control of five or fewer shareholders or under the control of its directors. A surcharge of 20% is payable on the undistributed investment and rental income of a close company. Professional services companies are liable to a surcharge of 15% on one half of the undistributed trading income and a surcharge of 20% on the undistributed rental and investment income; and
  6. Any company that files a late annual return must submit audited financial statements to the Government; and
  7. Ireland imposes an exit tax of 12.5% on companies that transfer assets to another jurisdiction or transfer the entire business to a foreign jurisdiction. Examples include i) a company resident in the EU transfers assets from a permanent establishment in Ireland to its head office or to another permanent establishment in another country or ii) a company resident in the EU transfers its business from a permanent establishment in Ireland to its head office or to another permanent establishment in another country or iii) a company transfers its residence from Ireland to another country. In these circumstances, the company is deemed to have disposed and immediately reacquired its assets/business at market value. Any gain arising as a result will be taxable at 12.5% and can be paid over a five year period;

Best uses of Irish companies

  • Ireland is a popular choice for technology-oriented multinational companies that wish to expand their operations in Europe, because:
    • Ireland has the second lowest corporate tax rate in the region;
    • They can take advantage of the knowledge development box, and lower their corporate tax;
    • Access to a big pool of highly skilled and English-speaking employees;
    • Opportunities to collaborate with top universities and education centers in the country;
    • Lower cost of living, when compared to other major European cities;
    • Ireland is the key technology hub in Europe. Some examples of companies that have set up their European headquarters in Ireland include Apple, Facebook, PayPal and Microsoft.
  • Attractive Jurisdiction for Holding Company:
    • Ireland’s attractive regulatory, tax and legal regimes, combined with an open and accommodating business environment has established the country as a world class location for the headquarters of many large multinationals.

Types of company structures and business solutions in Ireland

There are two main types of company in Ireland; private companies and public companies. Private companies limited by shares tend to be the business entity of choice for our multi-national Clients’. Public limited companies are typically used where securities are listed or offered to the public. Healy Consultants Group assists our Clients to i) choose the most suitable entity, ii) agree to the optimum corporate structure, iii) legally minimise local and international tax and iv) agree to the multi-currency corporate bank account location. This web page helps multi-national Clients understand the myriad of Irish entities available.

The Ireland limited liability company (LLC)

  • The private company limited by shares is the most common form of trading and services entity in Ireland and is generally incorporated as a subsidiary of a non-Irish holding company or as a stand-alone start up company;
  • While the owner(s) or shareholder(s) can be foreign and not required to live in Ireland, at least one of the directors must be ordinarily resident in Ireland or another European Economic Area (EEA) country unless our Client is willing to deposit a bond of €25,000 with the Irish Business Registrar. Many multi-national Clients ask Aidan Healy to be the nominee professional, passive resident director.
  • Annually, the Irish entity is required to submit i) a legal annual return to the Companies Registration Office (CRO) and ii) a corporation tax return and unaudited financial statements to the Irish Revenue Authority.
  • If the Irish LLC has a permanent establishment, it is required to register for VAT and submit quarterly government reports.

Designated Activity Companies (DAC)

A DAC is also a private limited company, but with a defined business function. It can list debts and securities, making it a common form of company type for special purpose vehicles (SPVs) engaged in capital market transactions. The DAC must have at least two directors and a company secretary and the minimum share capital requirement is nominal.

The Ireland special purpose vehicle (Section 110 company)

  • Ireland regulations allow businessmen and corporations to establish special purpose vehicles (SPV) to hold real estate, subsidiaries and other types of Irish and overseas assets. The procedures to do so are to i) register an LLC (or another type of business entity) and ii) apply for SPV status with the Ireland Central Bank.
  • Before granting SPV status, the Central Bank will require evidence that the company i) manages assets worth a minimum of €10 million and ii) is controlled by a majority of Irish residents. If needed, Healy Consultants Group can assist our Clients with nominee services for passive professional resident directors.
  • The main advantage of SPV status is a reduced corporate income tax rate of 12.5% on investment income while other companies are subject to a 25% rate. The company will also have access to Irish double taxation avoidance treaties to reduce international taxation on income distribution to overseas owners.
  • The Ireland SPV is used as a holding vehicle for assets owned by multinationals and high net worth individuals such as financial assets, commodities and plant and machinery.
  • Specifically, for property investments, Ireland provides businessmen with the opportunity to open an investment fund. Furthermore, a real estate investment fund is tax exempted from capital gains, stamp duty and withholding tax remitted locally or overseas.
  • Another type of financial company is the IFSC licensed entity. This business vehicle can offer international financial services, and benefits from the same low corporate tax of 12.5% and no withholding tax on interest payments.

The Ireland public limited company (PLC)

  • The Irish PLC is usually the optimal business entity for entrepreneurs who are willing to raise finance to fund a project. It is also the only business vehicle which can be introduced on the Ireland Stock Exchange. Irish PLCs require a minimum of i) seven shareholders, ii) two directors (one of whom must be Irish resident) and iii) a minimum issued capital of €25,000 (25% of which must be paid-up before incorporation into a capital/escrow account). The Irish Stock Exchange operates three markets for securities: i) The Main Securities Market (MSM) for the securities of Irish and overseas companies, ii) The Enterprise Securities Market (ESM) for small to mid-sized companies, and iii) The Atlantic Securities Market (ASM) for European and United States listings.
  • Irish PLCs are required to appoint an external auditor and to file audited financial statements every year with the Companies Registrar. Additional requirements apply if they want to issue transferable shares or to get listed on a stock exchange.

The Ireland branch office

  • A foreign company can trade directly in Ireland by establishing an Irish branch and registering in Ireland as an “external company”. The external company will be subject to compliance with certain requirements and filing obligations. The Irish branch is not a separate legal entity from the external company that established it. Consequently, the branch does not enjoy separate limited liability status. This means the Irish entity risks flow directly to the parent company; and
  • Non-resident companies that trade through a branch or agency in Ireland are subject to corporation tax on branch profits. Non-resident companies must pay income tax on other Irish-source income, subject to any relief provided by a double tax treaty. There is no withholding tax on the remittance of branch profits to the foreign head office; and
  • Branch establishments entail fewer compliance and financial reporting obligations and branch structures can be more cost-effective to unwind. This needs to be weighed against tax and other considerations such as the lack of ring-fenced liability, market perception and potential issues with the transferability of Irish business operations; and
  • At least one person resident in Ireland must be nominated to act on behalf of the company and to sign Companies Registration Office (CRO) forms and other documentation. A foreign company trading in Ireland through a branch is also required to file its financial statements with the Registrar of Companies (CRO); and
  • A foreign company setting up a branch in Ireland is therefore required to file basic information with the Registrar of Companies. This includes the date of incorporation of the company, the country of incorporation, the address of the company’s registered office, details regarding the directors of the company and the name and address of the person responsible for the branch’s operation. The foreign company’s constitution, certificate of incorporation and audited accounts must also be filed with the Registrar of Companies. On submission of the above, the Registrar will issue a certificate of registration to the branch.

The Ireland representative office

  • A foreign company may establish a representative office in Ireland but they should be passive and not sell or engage in business, the entity is not expected to generate revenue. Instead, the purpose of the entity is to establish an Irish permanent establishment including local employees and a physical office address. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company; and
  • The Irish representative office does not have a separate legal identify, but merely an extension of the overseas parent company. Consequently, the representative office does not enjoy separate limited liability status. This means the Irish entity risks direct flow to the parent company; and
  • Best uses for this entity: Registering a representative office in Ireland is a good way to venture into this market; conduct a market survey and confirm the profitability of future investment projects in this country.

Shannon free trade zone company

  • Shannon free zone was launched in 1959 and is the world’s first free trade zone. The zone is 600 acres big, located next to Shannon international airport and near the town of Limerick. The free zone is an attractive site for international distribution in Europe due to exemption from custom duties and access to air and land transport infrastructures. The Shannon free trade zone is an excellent location, situated on the edge of Europe, and an excellent gateway for Europe to the USA.
  • Key sectors that Shannon free trade zone specializes in include i) aviation, ii) information and communications technology, iii) engineering, iv) pharmaceutical, v) medical devices and vi) international services. Qualifying criteria for eligible companies include i) employment creation and ii) export orientation.
  • Key benefits offered by Shannon FTZ include:
    • A corporation tax of 12.5% for all trading profits.
    • Goods exported from Shannon to non-EU countries are exempted from custom duties.
    • Goods imported from non-EU countries for processing are also duty-free.
    • No value-added tax on imported goods.
    • Capital grants.
    • Excellent transportation network connection to Ireland’s main cities.
    • Proximity to Shannon airport with daily connections to USA and Asia.
    • Highly skilled and educated workforce.
    • Employment grants.
    • Research and development grants.

The Ireland international financial services centre company

The Ireland IFSC is one of the leading financial services centers in the world. It was set up in 1987 by the Irish government to attract international investment. Now, it has become a hub for economic and financial services like banking, insurance, asset management, fund management, trade financing and other allied services. Lately, aviation leasing has been a special point of growth, with more than half of the world’s leased aircrafts leased in the IFSCl.

The IFSC has over 400 companies employing over 40,000 people in the international financial services sector in Ireland, and its cumulative corporate tax payment exceeds €1 billion each year. 20 of the top 25 financial services companies have their subsidiaries in the IFSC. Strategically located within the EU, Ireland serves as a great access point to the European Single Market.

What are the advantages of registering an Ireland company to offer financial services?

  • The IFS2020 is the government’s strategy to promote Ireland as a strategic location for international financial services;
  • The IFSC offers a well-developed financial infrastructure which provides a platform for growing financial services companies;
  • Brexit may attract a new set of opportunities for the Irish IFS sector because of its strong commitment to the EU;
  • The IFSC has a highly sophisticated communications system which provides Information and Communications Technology (ICT) firms the perfect environment to grow and develop;
  • Ireland has the most productive workforce in the world which makes it more attractive and efficient for investors;
  • The IFSC is a breeding ground for the FinTech industry and incentivizes R&D activities;
  • Asset financing, funds management, payment solutions, and other such upcoming financial solutions receive preferential treatment within the IFSC.
  • A low corporate tax rate of 12.5%.
  • No withholding tax on interest payments to EU/ treaty countries.
  • 25% R&D tax credit available to companies involved in innovation activities.
  • No municipal taxes.
  • Special tax regime for regulated investment funds.
  • A corporate tax relief for the acquisition cost of IP and other intangibles.
  • Ireland has an extensive tax treaty network with 72 signed agreements and 68 in effect.

What are the possible financial services licenses available in Ireland?

The Central Bank is the regulating authority for the authorization of all financial services firms working in Ireland. Multiple options are available to our Clients looking to venture into the financial services sector. Some of the popular choices are:

  • Brokers/retail intermediaries: A broker / retail intermediary is a regulated firm that receives and transmits orders in certain financial products and/or provides advice in relation to those products;
  • Money exchangers (Bureau de Change): A bureau de change business provides members of the public with the service of buying or selling foreign currency;
  • Credit servicing firms: Credit servicing firms typically manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities;
  • Debt management firms: Firms which provide debt management services like advising about the discharge of debts, negotiating with creditors on a person’s behalf, and other similar activities;
  • Electronic money institutions: An undertaking that has been authorized to issue e-money in accordance with the European Communities (Electronic Money) Regulations 2011, as amended (EMR);
  • Funds and fund service providers: Investment funds established for investing the pooled funds of investors (held as units or shares) in assets in accordance with the objectives and policies published in a prospectus. Service providers can be fund administrators, depositaries, alternative investment fund managers, investment managers and advisers.

Ireland cryptocurrency business

Healy Consultants Group assists multi-national Clients with Irish cryptocurrency business set up including i) Irish company registration and multi-currency corporate bank account opening, ii) Virtual Asset Service Provider (VASP) registration with the Central Bank of Ireland, if required iii) Value Added Tax (VAT) registration, iv) leasing physical office premises, v) hiring local staff including an AML officer and vi) compliance with AML/CFT obligations.

Irish citizens are some of Europe’s most enthusiastic cryptocurrency investors. Because Ireland adopted cryptocurrency technology and trading ahead of the global curve, it is an accepted way of life for cryptopreneurs. In addition, Ireland boasts world-class traditional financial institutions and a growing FinTech sector. However, evolving regulations around cryptocurrency in Ireland are making it more complex and costsly to trade.

Why is trading bitcoin in Ireland profitable?

The Irish cryptocurrency business set up strategy

To use an Irish entity for cryptocurrency, our multi-national Clients must:

  • Register an Irish LLC.
  • Register as a VASP with the Central Bank of Ireland (with the exception of proprietary trading businesses)
  • Register for VAT.
  • Lease physical office premises in Ireland.
  • Hire local staff including an AML officer, if applicable.
  • Comply with Irish AML/CFT obligations. Since April 2021, VASPs in Ireland are subject to Ireland’s AML/CFT framework and must register with the Central Bank of Ireland. VASPs are defined as providing i) exchange between virtual assets and fiat currencies, ii) exchange between one or more forms of virtual asset, iii) transfer of virtual assets, iv) custodian wallet provider and v) participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset or both.
  • With your preferred Irish bank, open a multi-currency corporate bank account in US$ or Euros. See this page regarding our ‘guaranteed corporate bank account opening’ policy. If required, Healy Consultants Group can offer our multi-national Clients a professional passive nominee resident bank signatory.
  • Secure multiple Irish cryptocurrency wallets, with the top four exchanges including; i) Bitcove ii) Bitpanda, iii) Coinbase and iv) Coinmama. Ensure any Irish exchange is registered as a VASP.
  • Liquidate Irish cryptocurrency gains into the European corporate bank account. There is no limit on the number or value of daily transactions. For crypto transactions in European countries, 1 Bitcoin cash (BCH) = €423. The withdrawal fee is €0.30 using SEPA transfer.
  • Over the following months, repatriate the Irish earnings to overseas bank accounts.

Challenges with Irish crypto trading

  • Irish cryptocurrency companies are vulnerable to i) volatility of the industry, ii) regulatory crackdowns and iii) implementation challenges.
  • Because of new anti-money laundering regulations, in early 2021, cryptocurrency traders can no longer do business anonymously in Ireland. All traders must i) register with the Central Bank and ii) conduct detailed due diligence on their customers. This means the costs and inconvenience of cryprocurrency trading will increase.
  • There are few safety nets for crypto investors in Ireland because regulations are unclear and uncertain.

Tax rates for Irish cryptocurrency companies

  • An Irish company generating profits on crypto asset transactions is taxable under the normal corporation tax rate of 12.5%.
  • When a gain or loss arises at the time a crypto asset is disposed of it is then realised for capital gains tax purposes. Irish tax residents are liable for capital gains tax (currently 33%) on any gains arising after offsetting current and prior year capital losses.
  • Passive income derived from the staking or lending of crypto assets is subject to income tax, rather than capital gains tax.
  • Value added tax (VAT) on cryptocurrencies is applied as follows:
    • Supplies of good/services – the taxable amount for VAT purposes will be the Euro value of the cryptocurrency at the time of supply.
    • Financial Services – Bitcoin and other cryptocurrencies are deemed to be ‘negotiable instruments’ in Ireland and are exempt from VAT, where the company performing the exchange acts as the principal.
    • Cryptocurrency Mining – the income received from mining activities is VAT exempt, as the activity does not constitute an economic activity for VAT purposes.

Strategies to legally minimise Irish tax

If properly structured, an Irish entity can eliminate or minimise i) corporation tax, ii) VAT and iii) capital gains tax. Strategies to consider include:

  • Using an Irish LLP with no business activities in Ireland. To enjoy this benefit, entity criteria include i) the partners need to reside overseas, ii) no customers and suppliers in Ireland and iii) no employees and office premises in Ireland.
  • An Irish LLC can be entirely Irish tax-free once certain conditions are met including i) no business within Ireland or with Irish customers, ii) no physical office space in Ireland, iii) no employees in Ireland and iv) no banking in Ireland.
  • Secure exemption from Irish VAT registration. Iif a company’s international sales exceed 75% of their total Irish turnover, then all of their purchases and supplies, including imports, are zero-rated for Irish VAT.
  • Qualifying Investor Alternative Investment Funds (QIAIFS) are also a tax-exempt form of i) income, ii) capital gains and iii) stamp duty taxes, if they are owned by non-tax residents and the fund only deals with real estate investments.
  • See more information on our Ireland Accounting and Tax webpage here.

Other considerations

  • There are no capital controls on incoming funds transfers into Irish multi-currency corporate bank accounts.
  • Investing in crypto assets in Ireland is inherently risky. Only sophisticated investors should engage in this trading activity. Healy Consultants Group does not recommend trading strategies.
  • Through our business relationships with Irish banks, Healy Consultants Group will secure welcome emails from bank officers, inviting a formal multi-currency corporate bank account application from our Client. Our team will aggressively negotiate a travel exemption for the Irish LLC shareholders, directors and bank signatory.
  • That being said, the ultimate power of approval of multi-currency corporate bank account applications rests with the Irish bank in-house legal and compliance department. Refer to this web page to understand our guaranteed multi-currency corporate bank account solutions.
  • Within eight to ten weeks, Healy Consultants Group opens a quality crypto-friendly corporate bank account for our Client. To view different crypto-friendly banking solutions, view our dedicated map.
  • Irish regulations are fluid and unpredictable. Multi-national Clients should expect unexpected obstacles. Healy Consultants Group experts will supply legal work-around solutions.
  • For more information on alternative global crypto-friendly countries, visit this page.

Comparison of popular company setup solutions in Ireland

Compare different Ireland entities Tax Resident LLC Holding company IFSC LLC PLC LLP Representative office
Best use of company? All products and services Manage global subsidiaries Financial services Public listing Professional services Marketing & research
How soon can you invoice Clients/sign sales contracts? 2 weeks 2 weeks 3 months 3 weeks 3 weeks 3 weeks
How soon can you hire staff? 2 weeks 2 weeks 3 months 3 weeks 3 weeks 3 weeks
How long to supply corporate bank account numbers? 1 month 1 month 1 month 1 month 1 month 1 month
How long to supply company registration? 2 weeks 2 weeks 3 months 3 weeks 3 weeks 3 weeks
How long to supply tax numbers after company registration? 1 week 1 week 1 week 1 week 1 week 1 week
How long to supply VAT numbers after company registration? 5 weeks 5 weeks 5 weeks 5 weeks 5 weeks 5 weeks
Corporate tax rate on annual trading profits? 12.5% 12.5% 12.5% 12.5% 0% 0%
Corporate tax rate on annual non-trading profits? 25% 25% 25% 25% 0% 0%

Expand table

Effective corporate tax rate on net profits of €500,000? 4.5% 0% 4.5% 4.5% 0% 0%
Limited liability entity? Yes Yes Yes Yes Yes No
Minimum paid up share capital? (EUR) 1 1 1 25000 1 None
Recommended paid-up capital? 1 1 Depends on License 25000 1 None
Corporate bank account location? Barclays Ireland AIB SCB Bank Bank of Ireland Ulster Bank Ireland HSBC
Can secure trade finance? Yes Yes Yes Yes Yes No
VAT payable on sales to local customers? up to 23% up to 23% No up to 23% up to 23% No sales allowed
Average annual total business set up engagement costs? (EUR) 16,580 8,355 10,905 10,205 10,205 8,310
Average total engagement period? 2 months 2 months 4 months 2 months 2 months 2 months
Accounting and tax considerations Tax Resident LLC Holding company IFSC LLC PLC LLP Representative office
Statutory corporate tax rate on annual trading profits? 12.5% 12.5% 12.5% 12.5% 0% 0%
Statutory corporate tax rate on annual non-trading profits? 25% 25% 25% 25% 0% 0%
Legally corporate tax exempt if properly structured? No No No No Yes No
Staffed office and employees required to secure VAT? Yes Yes Yes Yes Yes No
Group HQ tax incentives? Yes Yes Yes Yes Yes No
Must file an annual tax return? Yes Yes Yes Yes No Yes
Must file annual audited reports? Yes Yes Yes Yes No Yes
Must appoint an auditor? No No No Yes No No
Access to double taxation treaties? Yes Yes Yes Yes Yes Yes
Company registration Tax Resident LLC Holding company IFSC LLC PLC LLP Representative office
Minimum number of shareholders/partners? 1 1 1 7 2 Parent company
Minimum statutory paid up share capital? (EUR) 1 1 1 25,000 1 None
Minimum number of directors/managers? 1 1 1 2 2 1
Must sign an physical office lease agreement during incorporation? No No No Yes No No
Shelf companies available? Yes Yes Yes No No No
Time to incorporate a new entity? 2 weeks 2 weeks 3 months 3 weeks 3 weeks 3 weeks
Can easily convert to a PLC? Yes Yes Yes Yes No No
Can have preference shareholders/partners? Yes Yes Yes Yes Yes No
Business considerations Tax Resident LLC Holding company IFSC LLC PLC LLP Representative office
Regulatory license usually required? No No Yes No No No
Can secure EU VAT in any country Yes Yes Yes Yes Yes No
Can secure EORI number for EU import.export? Yes Yes Yes Yes Yes No
Good entity for trademark registration? Yes Yes Yes Yes Yes No
Can secure an import and export license? Yes Yes Yes Yes No No

Resident director/partner/manager/legal representative required? Yes, EEA representative
Sponsorship by a local citizen required? No
Our Client needs to travel to Ireland for business set up? No
Temporary physical office solutions available? Yes
You need a local resident as bank signatory? No
Can be wholly foreign owned? Yes
Resident director/partner/manager/legal rep. required? Yes, EEA representative
The entity will likely be regulated by? CRO
Foreign non-resident director needs a residence visa? No
How soon can you sign a lease agreement? 1 week
Withholding tax on payments to foreign shareholders? up to 20%
Monthly VAT reporting to the Government? Yes
Public register of shareholders and directors? Yes
Government approval required for foreign owners? Yes
Corporate documents to be attested/translated? No
Can bid for Government contracts? Yes
Each foreign director needs a personal income tax number? No
Foreign non-resident director needs a residence visa? No
Maximum number of staff allowed? None
Maximum number of staff allowed? None
Can secure residence visa for business owner? Yes
Other useful information
What will be included in my customer sales invoice? Available template
This country has signed free trade agreements? 72
This country is a member of WIPO/TRIPS? Yes
This country is a member of the ICSID? Yes
Average custom duties suffered? 0.6%
Government foreign investment approval required? No
Maximum shareholding for foreigners? 100%
Average monthly office rental? (EUR per sq m) 50
Minimum statutory monthly salary? (EUR) 1,376
Average monthly salary for local skilled employees? (EUR) 2,500
Security deposit to be kept with Government? No
EUR deposit interest rate? (1 year average) 0.25%
Overseas remittance currency controls? No
Banking considerations
Multi-currency bank accounts available? Yes
Access to international PSP such as WISE? Yes
Corporate visa debit cards available? Yes
Quality of e-banking platform? Yes
Crowd funding available in this country? Yes

Steps to incorporating company in Ireland

Setting up a new business entity and opening a business bank account in Ireland is straightforward. Our Client is not required to travel to Ireland by utilizing electronic signature. Within 10 weeks, Healy Consultants Group will complete your Irish business set up. The main steps for Irish company incorporation include:

Pre-incorporation planning

  1. Healy Consultants Group and the Client sign off an engagement letter and agree on the optimum corporate structure, including: i) ultimate beneficial owners, shareholders and directors, ii) periodical accounting, compliance tax considerations, iii) licensing requirements, iv) paid up share capital and v) city centre business address and vii) economic substance for means of registering for VAT.
  2. To swiftly complete company registration and open the multi-currency corporate bank account, we recommend our Client keep the corporate structure simple. For example, one shareholder, director and bank signatory and engaging Healy Consultants to supply an EEA director.
  3. Immediately thereafter, our team crafts a quality detailed project plan (click link) and reserves the company name with Companies Registration Office (CRO).
  4. Each Irish LLC must appoint a resident company secretary and at least one director who is ordinarily an EEA resident. Most of our multi-national Clients appoint Mr. Aidan Healy as the legal company secretary and professional passive Irish nominee resident director for their Irish LLC.
  5. Ireland imposes strict rules on business names. Even slightly similar company names can be declined by the Government. Healy Consultants Group will tenaciously secure the Irish company name reservation for our Client.

Incorporation process

  1. Healy Consultants Group emails our Client the legal forms for company incorporation. Unfortunately, the Constitution form must be printed and blue pen signed by each shareholder and director. The original signed document is to be couriered to our Irish office. Form A1, on the other hand, can be completed online, signed electronically and submitted on the CORE portal.
  2. In some cases, the Irish Registry may request foreign parent company documentation to be translated, notarised, apostilled or legalized at the Irish Embassy. Healy Consultants Group will then advise our Client exact procedures and prescribe a courier checklist.
  3. Original signed documents to be submitted to and only accepted via physical courier to CORE. Within ten business days, the Irish Government will email us a certificate of incorporation.
  4. As evidence of legal company registration, Healy Consultants Group will courier to our Client the original company documents, including M&AA (memorandum and articles of association) and certificate of incorporation.
  5. To ensure company formation takes place without delay, Healy Consultants Group and our Client to ensure i) shareholders’ and directors’ names match those in their passports ii) signed company documents are accurately and completely signed and iii) notarized and apostilled copies of parent company documents are properly prepared.

Post-incorporation procedure

  1. Healy Consultants Group registers our Client’s company with the Irish Revenue Department for corporation tax by preparing TR2 Forms.
  2. To register for VAT in Ireland, the Irish Revenue Department expects our Client to bring economic substance to the business before releasing VAT numbers. A minimum requirement for VAT registration is having a small office and a part time employee. Healy Consultants Group can assist our Client secure cheap part time employee and sign a temporary lease agreement;
  3. Our Client signs-off original corporate bank account forms and couriers to our Irish office. Securing multi-currency corporate bank account approval in Ireland is slow; because the economy is strong and demand for bank services is high. The bank’s in-house Legal and Compliance Department is slow and inefficient. Approvals are within 8 weeks.
  4. The bank headquarters will mail the e-banking passwords to our Irish office. Before the passwords expire, and with our multi-national Client’s permission, our CFO logs into e-banking on their behalf and activates the platform. We then promptly courier a secure package to our Client for their e-banking access and change of user access and passwords.
  5. Within a month, to avoid monthly bank charges, our Client deposits the minimum multi-currency amount into the corporate bank account.
  6. As a fast alternative, Healy Consultants Group can open a temporary corporate bank account with a neo-bank of good quality;
  7. To help our multi-national Clients accurately and completely sales invoice their customers, Healy Consultants Group creates a template sales invoice on our Client’s headed stationery including i) company number and ii) city centre business address iii) VAT number iv) corporation tax number and v) multi-currency corporate bank account coordinates.
  8. Healy Consultants Group will help our multi-national Clients secure Government grants and tax benefits for their new Irish business set ups.
  9. The Ireland engagement is now successfully completed. We dispatch a company kit to our Client, which includes the company’s original corporate documents, unopened bank correspondences and a Client feedback survey.
  10. If required, Healy Consultants Group in-house Legal and Compliance Department will timely and accurately prepare and submit UBO declaration with Central Register of Beneficial Ownership.

Post-engagement completion

  1. Healy Consultants Group assists our multi-national Client with their monthly and quarterly Government reporting, including VAT and payroll. To receive a tailored quote, please complete our accounting and tax questionnaire;
  2. Healy Consultants Group also supplies our multi-national Clients with these free value-added business support services.
  3. In year 2, our Client supplies our in-house Accounting and Tax Department with a trial balance. Healy Consultants Group prepares financial statements and corporation tax returns for our multi-national Client’s e-signature.

Ireland corporate bank account services

Ireland banking problems and solutions

No Potential Ireland banking problems Healy Consultants Group solutions
1.

Some banks insist the bank signatory travel to Ireland for a one-hour bank interview at their branch, before releasing corporate bank account numbers.

Healy Consultants Group’s Client travel policy will apply (click link). Our staff will organise the bank meeting in our Ireland office and assist our Client during the bank interview(s).

2.

Global banks continue to tighten corporate bank account opening procedures, their internal compliance departments completing more thorough due diligence of Clients. Consequently, our Clients should expect Ireland bank account approval to take up to six weeks. Furthermore, banks now require evidence of proof of business in the country where the company bank account will be, including sales contracts or lease agreements.

If our Client requires a bank account at short notice, we recommend an immediate Ireland solution;

3.

The majority of Irish bank only provide telephone support during Irish business hours. This is inconvenient for multi-national Clients in Asia.

Healy Consultants Group Staff assists our multi-national Clients with bank communication, regardless of time zones.

4.

Most Irish banks require a director of the entity to be resident in Ireland in order to proceed with bank account opening.

If required, Healy Consultants Group can provide our Client with a nominee resident director in this jurisdiction.

5.

If Irish banks perceive any unusual bank account activity, they will close the corporate bank account with one month’s notice to the beneficial owners. No questions asked, no chance to defend yourself.

We recommend our multi-national Clients open multiple bank-up multi-currency corporate bank accounts with different banks.

6.

Irish banks consider tax neutral entities to be high risk customers and do not welcome corporate bank account applications from these potential Clients.

Re-domicile (click link) your tax neutral entity to a more reputable jurisdiction. Thereafter, Irish banks will welcome a corporate bank account opening application.

Our summary view of the Ireland banking sector

  • Ireland is a reputable, stable jurisdiction with a strong, secure and regulated banking system. Both the EU and Irish central banks have a reputation for intervening to support the system when necessary, and there is low risk of a repeat of the country’s 2008 banking crisis.
  • Ireland’s sovereign credit rating in October 2021 is i) A+ (Fitch) ii) A2 (Moody’s) iii) AA- (Standard and Poor’s). As a result, investors view Ireland as a stable global location in which to invest and hold funds.
  • Irish savings, current and deposit bank accounts are insured by the government up to €100,000. This offers another layer of comfort to depositors.
  • Ireland imposes no exchange controls on inbound or outbound funds transfers. There is no withholding tax on the repatriation of capital or profits.
  • Bank customer service is excellent. Irish bank officers are respectful, friendly and caring.
  • Because of the above, Healy Consultants Group considers Ireland an excellent long-term banking solution for our multinational Clients.

Important information on the Irish banking sector

  • Ireland’s banks offer corporate banking facilities such as i) multiple currency accounts ii) multi- channel banking iii) quality online banking iv) safe savings and checking accounts v) Visa/MasterCard cards support vi) tailored asset management services and vii) crypto friendly banking options.
  • The Central Bank of Ireland (CBI) and European Central Bank (ECB) both regulate the Irish banking financial system. There are 64 licensed financial institutions in the country.
  • Ireland’s largest commercial banks include i) Permanent TSB ii) Bank of Ireland and iii) AIB. These banks are ideal for Clients targeting Clients and suppliers in Ireland and Europe.
  • For Clients targeting international markets and invoicing foreign customers, we recommend a corporate bank account with a global bank with a presence in Ireland. HSBC Ireland, for example, has branches across Asia, Africa and North America. Other options include Barclays Bank Ireland, Standard Chartered, Citibank, and JPMorgan Chase Dublin.
  • Ireland residents and non-residents can open bank accounts in foreign currencies, including €, US$ and £. There are no limits on the amount of foreign currency residents can hold in an Irish bank account.
  • Most banks in Ireland require the following information for account opening: i) certified proof of address of bank signatory ii) certified business profile from Companies Registry iii) certified/apostilled passport copy iv) notarised board resolution with names of signatories authorised to open and operate the corporate bank account(s) v) where applicable an apostilled Power of Attorney from board of directors and vi) proof of stock exchange listing, if applicable.
  • Within 2 months Healy Consultants Group can open an Irish or international bank account once the company is registered. Depending on our Client’s business and nationality, the bank’s compliance department may, however, require them to travel to Ireland to open the account. Healy Consultants Group will skilfully negotiate with the bank for an exemption. Read detailed information regarding steps following corporate bank account application. View also the typical corporate bank account opening process.
  • Most local banks require a minimum initial deposit of €10,000. This must be transferred into the new corporate bank account within one week of the IBAN being issued. International banks and private banks normally require a higher initial deposit and a minimum monthly balance of €50,000. It is advisable to maintain this minimum balance to avoid monthly service charges of at least €15.
  • Following corporate bank account approval, the Irish bank will prepare and courier a banking kit which typically includes: i) IBAN and BIC corporate bank account details ii) internet banking password and token and iii) template forms for various services offered.
  • Banks in Ireland focus on cross-sales. In practical terms, this means a new corporate banking Client can benefit from better terms and conditions on i) overdraft facilities and ii) extended credit lines.
  • Banks in Ireland are also happy to offer trade finance facilities to resident and EU companies, if certain compliance targets are met. These include receipt of i) a realistic business plan ii) verified background of the business owners iii) expected cash flow charts iv) P&L documentation and v) reference letters for Clients and suppliers.
  • Healy Consultants Group can assist our Clients secure a specific instrument or facility from our partner Ireland banks, including preferential terms on i) corporate credit lines and loans and ii) letters of credit and bank guarantees.
  • Because banks everywhere are looking to cut costs, we expect the number of bank branches to fall and the range of online services to expand.
  • Ireland is a signatory to the Common Reporting Standard (CRS), a global initiative to clamp down on tax evasion. As a result, banks operating in Ireland share information on accounts and account holders with tax authorities where the company/individual is tax-resident.
  • Similarly, under the Foreign Account Tax Compliance Act (FATCA), since 2014 Irish banks report information on US account holders to the US Inland Revenue Service (IRS).

Steps to opening an Ireland corporate bank account

  1. Prior to submitting the account application, Healy Consultants Group requires from our Client detailed information on i) company activities (including proof of business-like contracts and invoices etc) ii) the company’s customers and suppliers iii) management team and iv) financial projections. This information increases the application’s chances of approval.
  2. Upon receipt of the above, our experts prepare a detailed business plan highlighting the company’s activities, financial projections, and reasons for opening an Ireland bank account. We send the business plan to our Client for review and approval before sharing with banks.
  3. Healy Consultants Group approaches multiple local banks in Ireland to obtain preliminary approval for bank account opening for our Client’s company. We receive multiple welcome emails from banks and share the same with our multi-national Clients.
  4. After we agree the target banks with our Client, Healy Consultants Group prepares bank account opening forms for our Client’s signature in front of the notary public or local bank branch officer. Once the Client has signed the documents, they courier the originals to Healy Consultants’ Ireland affiliated office.
  5. On receipt of the signed bank forms, the bank’s in-house Legal and Compliance Department will complete their Know Your Client (KYC) procedures to confirm the potential customer is a bona fide businessman.
  6. Depending on our Client’s business and nationality, there is a 50% probability the banks will request a signatory to travel for a one-hour bank interview. Healy Consultants Group will try its best to negotiate with the bank for a travel exemption. If our Client must travel for the corporate bank account opening, Healy Consultants Group will refund our Client US$950.
  7. Within three weeks of submitting the account opening application, Healy Consultants Group will receive multi-currency corporate bank account approval notification from the bank officer.
  8. Our Client will be required to fund the bank account within one week. The minimum initial deposit for a business bank account in Ireland can range from US$1,000 to US$10,000, depending on the bank.
  9. Within two weeks, Healy Consultants Group’s office receives Internet banking activation documents. With our multi-national Clients’ written permission, our CFO activates online banking on our Client’s behalf.
  10. Following successful e-banking activation, we dispatch a secure courier to our Client’s preferred mailing address containing i) original company documents ii) e-banking information and iii) other engagement information.
  11. Following receipt of the courier, our Client changes e-banking access passwords to their preferred ones; enjoying sole access to the corporate bank account. From this point onwards, the banking relationship exists between the bank signatory and the bank. Healy Consultants Group is not a party to the banking relationship.

Documents required for Ireland corporate bank account opening

  • Completed corporate bank account opening forms.
  • Company certificate of incorporation and recent certificate of incumbency (or country equivalent).
  • Certified true copy of company’s profile from the Companies Registration Office or country equivalent.
  • Certified true copies of passports of the UBO, shareholders, directors and bank signatories.
  • Certified true copies of proof of address of the UBO, shareholders, directors and bank signatories.
  • Certified true copy of the company’s M&AA.
  • Board of Directors’ approval for the account opening and appointed bank signatories.
  • Ireland banks may also require i) legalised copies of the above documents and/or ii) additional due diligence documents on a case-by-case basis.
  • A quality business plan prepared by Healy Consultants Group.

Ireland corporate taxation

  • Companies that are resident in Ireland must pay corporation tax on worldwide profits and chargeable capital gains (subject to double taxation treaty relief). The standard rate of corporation tax on Irish trading profits is 12.5%. To benefit from this rate, companies must derive income from a trade that is actively carried on in Ireland. Practically all active business pursuits will qualify for the 12.5% rate. A rate of 25% applies to non-trading income (for example, rental income and royalty income) and foreign-source income; and
  • A non-resident company is chargeable to corporation tax on profits arising from a business conducted through a branch or agency in Ireland or from disposals of specified Irish assets, such as Irish land or buildings. A non-Irish incorporated company may also be tax resident in Ireland if it is centrally managed and controlled in Ireland. The test is a factual test that is typically directed at the highest level of control of the business of the company; and
  • Losses from trading activities can be carried forward indefinitely and deducted against future trading profits without any limitation. And can also be carried back against trading profits from the immediate preceding accounting period. Furthermore, trading losses can generally be offset against non-trading income; and
  • VAT ranges from 0% to 23% depending on the product or service. In general, VAT applies on all imports of goods from outside of the EU, on the supply of goods and services within Ireland and to services received in Ireland from suppliers outside Ireland. The VAT is calculated on the euro value of the consideration and declared and paid to Irish Revenue through periodic returns; and
  • An Irish resident company is subject to Irish capital gains tax of 33% on its worldwide gains. However, an exemption applies to disposals of shares held by a holding company in its subsidiary when i) the subsidiary is resident in Ireland, the EU or a treaty state and ii) the subsidiary is a trading company or part of a trading group and iii) the parent held a minimum of 5% of the shares of the subsidiary for an uninterrupted period of at least 12 months in the previous 24 months.
  • Dividends paid by a resident company are generally subject to dividend withholding tax of 25%). Exemptions apply when the recipient of the dividend is resident in the EU or in a country that has a tax treaty with Ireland. Dividends between Irish companies are generally exempt. A corporation tax rate of 12.5% applies to dividends paid out of the trading profits of an EU or treaty-country resident company; and
  • In general, Irish-source interest is subject to tax at the standard income tax rate of 20%. However, many domestic exemptions exist including i) interest from commercial paper, certificates of deposit and certain listed bonds and ii) interest paid from one Irish resident company to another Irish resident company in the same Irish tax group and iii) interest received from all corporations in EU member states and most treaty country residents; and
  • Customs and excise duties are generally levied on imports from outside the EU. The rate of duty depends on the precise nature and circumstances of the import. Since the burden of VAT is intended to fall on the final consumer of the relevant goods or services, businesses engaged in making only supplies of goods or services that are subject to VAT will generally be entitled to recover their VAT costs in full; and
  • Employees are liable to income tax on their worldwide annual taxable income at 20% on the first € 35,300 and 40% on the remainder. Through the PAYE system, it is the responsibility of the employer to deduct the correct amount of income tax from the employee’s remuneration and to pay this to the Irish Revenue Commissioners. In general, salaries derived by a non-tax resident employee from employment in Ireland are taxable both in Ireland and in the employee’s country of residence. If an employee is not resident in Ireland and they do not perform duties in Ireland, there is no liability to pay Irish tax; and
  • Other deductions operated by employers through payroll include social insurance contributions including the Pay Related Social Insurance (PRSI) and the Universal Social Charge (USC). Unlike PAYE, PRSI is paid partly by the employer and partly by the employee. The employer’s contribution is generally 11.05% of the relevant employee’s salary, whilst employees generally pay 4% of their salary. Employees will also pay USC at rates of 0.5%, 2%, 4.5% and 8% depending on the amount of income earned; and

Ireland VAT

  1. VAT registration is mandatory if annual sales forecast exceeds the following thresholds: i) €75,000 for supplying goods and ii) €37,500 for supplying services.
  2. In reality, registration for VAT is time-consuming process. Securing a VAT number mandates Clients to have economic substance in Ireland, including leasing a physical office and at least part time employee stationed at the office. The Government conducts site visits to ensure economic substance is in place;
  3. The standard VAT rate is 23%, increased from 21% in March 2021.
    There are also reduced rates of 13.5% and 9% in the tourism and hospitality sectors respectively.
  4. The standard VAT rate in Ireland is 23%. However, goods/services may be subject to reduced rates of 0%, 9% or 13.5%.
  5. An Irish LLC is allowed to register for VAT if it makes taxable supplies.
  6. VAT returns must be submitted bimonthly.

Ireland corporate tax incentives

  1. A tax credit of 25% of the incremental R&D expenditure can be offset against a company’s corporation tax liability in the year in which it is incurred. Any remaining excess can be carried forward indefinitely for use against future corporation tax liabilities;
  2. Irish companies can claim tax credit equivalent to 25% of cost spent construction or refurbishment works carried out on an R&D building, where 35% of the building must be used for qualifying R&D activities within a four-year period;
  3. Corporate tax at 6.25% applies to certain profits from qualifying patents. Shareholders of company receiving dividends from patent income may also enjoy ‘tax-free status’;
  4. Capital expenditure incurred on acquisition or development of intangible assets are given allowances. The allowances may be granted at 7% per annum for the first 14 years and 2% for the 15th year;
  5. Foreign income dividends are tax exempted if i) the foreign subsidiary is tax resident in the EU or a Treaty Country with Ireland and ii) the dividends are paid out of trading profits of the foreign subsidiary which was subjected to at least 13% of foreign corporate or withholding tax.
  6. QIAIF investment funds are also tax exempt form income, capital gains and stamp duty taxes as long as it is owned by non-tax residents and the fund only deals with real estate investments.

Other Ireland company tax consideration

  1. Business registered in Ireland does not have capital duty or net wealth taxes;
  2. Capital expenditure for the purchase or acquisition of patent rights may be written off in equal amounts over 17 years or the remaining life of the patent, whichever is shorter.
  3. An Irish LLC suffers 33% capital gains tax on gain arising from disposal of capital assets;
  4. Stamp duty of 1% applies on transfer of common stock or marketable securities. For most other forms of property, stamp duty applies at 2%;
  5. To promote renewable energy sources, an Irish LLC suffers a carbon tax rate at €20 per tonne of CO2 emitted and is added to the cost of fuel.

Legal and compliance considerations

  • An Irish company must file its corporation tax return within 9 months after the end of the accounting period; and
  • Together with annual financial statements complying with International Accounting Standards, a private limited company must submit a legal annual return (click link) to the CRO, setting out details of its officers, members, and share capital as at the annual return date. Any company that files a late annual return must submit audited financial statements; and
  • Small companies are exempt from having financial statements audited. To qualify for the exemption a company must have i) a turnover of less than € 12m and ii) a balance sheet total of less than € 6m and iii) an average number of employees fewer than 50; and
  • An Irish subsidiary company can file the consolidated financial statements of an EEA parent instead of its own financial statements, if the parent gives an irrevocable guarantee in respect of that subsidiary’s liabilities, and certain other conditions are met; and
  • The European Union (Anti-Money Laundering Beneficial Ownership of Corporate Entities) Regulations 2019 require Irish companies to obtain and keep adequate and accurate information on their beneficial ownership in a beneficial ownership register. Individuals are considered to be beneficial owners under these Regulations if they ultimately own or control the entity. Irish companies must file information of their beneficial owners with the Register of Beneficial Ownership maintained by the Registrar of Companies including i) name and residential address and ii) date of birth and iii) nationality and iv) PRSI number. The general public have restricted access to this register; and
  • Financial statements must be prepared in accordance with either International Financial Reporting Standards (IFRS) or Companies Act requirements. The consolidated financial statements of EU listed companies incorporated in Ireland or elsewhere in the EU must be prepared in accordance with IFRS. Irish parent companies must prepare consolidated or group financial statements, subject to exemptions based on size thresholds. Consolidation exemptions apply where the parent and all its subsidiary undertakings are included in consolidated accounts for a larger group and those financial statements are drawn up in accordance with the relevant EU accounting directives or IFRS. An Irish subsidiary of an EEA parent may file the consolidated financial statements of the parent instead of its own financial statements, provided the EEA parent company guarantees its liabilities. Statutory auditors must audit the company’s financial statements on annual basis. A company (or group) which falls below certain size thresholds may be entitled to an audit exemption; and
  • Ireland has concluded Tax Information Exchange Agreements with 26 countries, all of which are in force; and
  • Ireland is a signatory to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), which came into force in May 2019. In October 2021, Ireland signed up to an agreement to reform the international tax framework as it applies to large corporate groups. The OECD Agreement establishes a new international tax framework, including the introduction of a global minimum tax rate of 15% on multinationals with annual revenue over €750 million with effect from 2023. The Irish government confirmed that the existing 12.5% corporation tax rate will continue to apply to multinationals and domestic businesses operating in Ireland that do not exceed the €750 million group revenue threshold. As a result, there will be no change in the 12.5% corporation tax rate for the majority of businesses in Ireland which remain outside the scope of the OECD Agreement.
  • Ireland’s transfer pricing regime largely conforms to OECD principles and generally seeks to prevent connected parties obtaining an Irish tax advantage by entering into transactions on the basis of non-arm’s length pricing. Under the applicable rules, it may be necessary for companies to make a transfer pricing adjustment in respect of a transaction that is not made on arm’s length terms. Taxpayers must maintain contemporaneous documentation in respect of transactions subject to the transfer pricing rules. An exemption from the Irish transfer pricing rules is contained in Irish tax law for small and medium enterprises (“SMEs”). The definition of a SME is assessed at a group level and will be regarded as an SME if it has i) fewer than 250 employees or ii) a turnover of less than €50 million or iii) assets of less than € 43 million;

Ireland corporate support services

Ireland company secretarial service

In accordance with the Irish Companies Act 2014, all local companies must appoint 1 secretary, who will fulfil certain legal compliances on the company’s behalf with the Irish Registrar.

Changes in Corporate Structure

  • As the company secretary, Healy Consultants Group will assist with i) adding or removing directors/shareholders and ii) modifying the existing shareholding by issuing new shares or effecting share transfer;
  • Our Irish company secretarial team will i) prepare the documents for director & shareholder signature and ii) file/courier the forms with/to the Registrar. For instance, to change the company director, we will i) modify the director details on the Registrar website and ii) thereafter, courier the signed Form B10;
  • Please note the share transfer can only be completed when filing the annual return with the Registrar.

Changes in Memorandum of Association

  • Some companies may wish to modify their Memorandum of Association for different reasons including i) increasing the authorized share capital ii) changing the company objectives and iii) increasing/decreasing responsibilities of the officers;
  • For this purpose, our team will i) prepare new drafts of the company constitution ii) get them approved and signed by the Clients (along with the resolutions) and iii) file/courier the necessary forms with/to the Registrar

Preparation of Annual Returns

  • All Irish companies must file an annual return with the Companies Register. For this purpose, we will i) complete Form B1 online and ii) send the signature page to the Client. Thereafter, will courier the latter document to the registrar;
  • Additionally, if requested, Healy Consultants Group will also file annual financial statements and tax returns for our Client’s company. This will be covered under our accounting and tax service, information about which can be found on this page

Miscellaneous Services

Apart from the aforementioned services, we will also assist with i) changing the company name ii) registration of separate trading name and iii) company de-registration. In these cases, we will i) prepare the necessary applications and resolutions ii) get them signed by the Client and iii) file them with the registrar.

Company restoration services

Healy Consultants Group offers our Clients fast and efficient solutions to restore your struck off company to the Companies Register. Depending on the lapsed period from the date of the dissolution of the company, our experts will either submit a restoration application through the High Court or through the Registrar of Companies at the Companies Registration Office (CRO).

Restoration within 12 months

  • Where a Client’s company is struck off the register pursuant to i) section 12A of the Companies (Amendment) Act, 1982, also known as a “Revenue Strike-Off” or ii) section 311 of the Companies (Amendment) Act, 1968, also known as a “CRO Strike-Off”, the company can submit an application to be restored to the Register within 12 months from the dissolution date;
  • The company must i) file all outstanding returns and statements ii) obtain a confirmation letter from the Revenue Commissioner confirming the same and iii) submit all audited financial accounts to the Companies Registration Office (CRO);
  • If the CRO is satisfied and grants an approval for restoration, the company will be deemed to have been continually in existence without a strike off.

Restoration after 12 months

  • In the case of a company that has been struck off in excess of 12 months but not more than 20 years, a restoration application must be submitted through the High Court. If approved, i) the High Court then issues a Restoration Order to be submitted to the CRO within 3 months and ii) the CRO then publishes the Notice of Restoration on the official gazette of the Government of Ireland, Iris Ifigiuil, thereby reinstating the company;
  • To be eligible for reinstatement, the company must i) submit any outstanding returns and financial statements ii) obtain a letter of no objection from the CRO’s Enforcement Section and from the Chief State Solicitor’s Office clearing the company for possible restoration and iii) submit a petition to the High Court for reinstatement.

Ireland employment permits

Types of Irish employment visas

Ireland as part of the EEA (European Economic Area) allows the migration and recruitment of all EEA nationals (except Romania and Bulgaria) without requiring an Employment Permit. Non-nationals of the EEA are required to obtain any of the following employment permits from the Department of Business, Enterprise & Innovation (DBEI)

  1. General: All holders are entitled to a broad range of occupations including highly skilled jobs except those categories listed as ineligible and are strictly reserved for Irish nationals. To be eligible for a General Employment Permit, the applicant must receive a fixed salary of at least €30,000 per annum;
  2. Critical Skills Employment Permit: This permit is mainly for engineers, scientists and professionals that fall under the high skill occupations;
  3. Contract for services: employees of a foreign based contractor are sponsored by the Irish company under this permit to be able to work in Ireland for the duration of a specific contract. Eligible applicants must receive an annual salary equivalent of €40,000 and must have been employed with the contractor for at least 6 months;
  4. Intra company transfer: Directed to non-EEA staff within a group of companies that require relocating temporarily to Ireland to perform their duties while being directly employed by an overseas subsidiary or parent company;
  5. Employment Permit for Dependant, Partner or Spouse: only the dependants, recognized partners and spouses of Critical Skills Employment Permit holders are eligible to apply for this permit to legally work in Ireland;
  6. Other types of permits include the Internship EP for students enrolled in high skilled occupations seeking work experience and the Sport and Cultural EP for highly qualified or experienced professionals in specific sports and entertainment industries.

Steps to secure an employment and residence visa

  • Once the candidate has secured a job offer from an Irish company, the Employment Permit application can be submitted directly by the applicant via the DJEI website;
  • If required, Healy Consultants Group will assist our Clients secure employment permits including i) preparing the application forms and reviewing the due diligence documentation ii) submitting the online application on behalf of our Client iii) negotiating with the DJEI officers and submitting an appeal if the application was rejected;
  • After obtaining an Employment Permit, if our Client requires an entry visa to Ireland, Healy Consultants Group will be assist our clients submit a quality application to the Irish Naturalisation and Immigration Service (INIS). Our fees to assist secure Irish employment and residence visa amount to €3,950 for the first applicant, €2,950 for the second applicant and €1,950 per applicant thereafter.

Invest in Irish real-estate free of tax

  1. Through the use of a QIAIF regulated fund, foreign investors can legally eliminate all Irish taxes, including capital gains tax, income tax and stamp duty;
  2. QIAIF income distributions are remitted overseas free of Irish withholding tax. If a foreign investors wishes to sell his shares in a QIAIF, there are no Irish tax implications;
  3. A QIAIF can be used as an investment vehicle by one or more foreign investors. We recommend a minimum investment of €10million for the tax savings to outweigh QIAIF set up and annual maintenance costs;

How to set up a QIAIF owned and controlled by foreign investors

  1. The most common legal structure for a QIAIF is an Irish investment company. The ordinary shares owned by an Irish licensed fund manager trustee. Preference shares issued to foreign investors;
  2. At least two of the Irish investment company directors must be Irish residents. Mr. Aidan Healy (click link) will be the resident director, the second being a licensed investment manager. The remaining directors can be the foreign investors making decisions about the QIAIF’s portfolio;
  3. The Irish investment company will have a local corporate bank account to receive rental income and proceeds from sale of investment. The foreign investors will be the sole bank signatories;
  4. Other Irish investment company appointments include i) a fund administrator responsible for portfolio valuation and fund accounting ii) a custodian who will hold the fund’s assets for safekeeping;’
  5. A QIAIF fund is regulated by the Central Bank of Ireland and covered by the EU’s Alternative Investment Fund Management Directive (AIFMD);

QIAIF licensing process

  1. The Central Bank of Ireland uses an online system for submitting and reviewing QIAIF licensing applications;
  2. The fund must submit the following details and documents to complete the licensing process:
    • The fund’s legal structure (corporate entity, investment trust, common fund, etc.);
    • The fund’s prospectus, which must be compliant with Chapter 2 of the CBI’s Alternative Investment Fund Rulebook;
    • The fund vehicle’s memorandum and articles of association (or equivalent, depending on fund structure);
    • Directors’ details;
    • An agreement between the fund and its alternative investment fund manager (AIFM); and
    • An agreement between the fund and its custodian.
  3. Following application submission, government correspondence will take place through the portal;
  4. This government guide provides more information on how to apply to set up a QIAIF.

QIAIF investment restrictions

  1. An investor in a QIAIF must meet certain qualification requirements, which can largely be satisfied by certifying their understanding of the risks involved in their investment. All fund investors must make an initial commitment of at least €100,000 to the fund.
  2. The funds themselves are not restricted only to real estate investments. Other alternative investment products may be targeted by the fund, meaning that they are also suitable for venture capital, hedge fund and private equity structures. However, because these types of funds invest in companies that remain taxable as underlying assets, the QIAIF structure does not have the same advantages as it does for real estate.
  3. There is no maximum leverage ratio for a QIAIF, although the amount of permitted leverage must be declared in the fund’s prospectus.

Buying into an existing QIAIF

  1. Foreign investors can purchase units of an existing licensed QIAIF fund. The investors are passive and the fund manager owns and controls the funds;
  2. Foreign investors buy and sell units of the fund, without suffering Irish taxes. Foreign investors receive annual fund distributions free of Irish withholding tax;

Irish taxes without a QIAIF

  1. Capital gains tax of 33% (click link), on the sale of Irish land and buildings, consuming a significant chunk of investor’s profits;
  2. Withholding tax of 20% (click link) on rental income earned, regardless if remitted overseas or not;
  3. Stamp duty on transfers within the portfolio, typically at 2%;

Background to QIAIF structure

  1. Just like Singapore and Dubai, Ireland is an open economy. The success of which is dependent on foreign investment. To increase foreign investment in Irish real estate, the Irish government approved the QIAIF as a legally tax exempt fund vehicle;
  2. Because QIAIFs are classified as an Irish resident entity, this fund vehicle can collect rental income gross;
  3. Unfortunately, Irish tax residents do not enjoy the benefits of a QIAIF;

Fees and timelines for Ireland company setup

Fees to setup Irish companies

Ireland company setup costs in Year 1 amount to €2,935 and annual company costs in Year 2 and thereafter amount to €1,955. The average fee per Ireland corporate setup engagement is €16,580 as outlined in the table below. There fees include Ireland company incorporation, opening corporate bank accounts and all government fees.

Different Ireland entity types Cost Draft Invoice
Tax resident LLC €16,580 View invoice PDF
Branch of a foreign company €9,470 View invoice PDF
Representative office €8,310 View invoice PDF
Subsidiary LLC €8,355 View invoice PDF
Holding company LLC €8,355 View invoice PDF
IFSC company €10,905 View invoice PDF
LLC with employment visa €12,305 View invoice PDF
PLC company €10,205 View invoice PDF
Limited liability partnership €10,205 View invoice PDF
Company limited by guarantee €8,355 View invoice PDF
Special purpose vehicle (SPV) €8,355 View invoice PDF
Free zone company €10,305 View invoice PDF
Turnkey solution €12,570 View invoice PDF
Crypto-Exchange LLC €53,600 View invoice PDF

Timelines for Ireland company setup

The average Ireland company formation engagement period is 10 weeks as outlined below:

Service LLC SPV PLC LLP Branch RO Company by guarantee
Engagement Planning 1 week 1 week 2 weeks 1 week 1 week 1 week 2 weeks
Company incorporation period 2 weeks 3 weeks 3 weeks 3 weeks 3 weeks 3 weeks 3 weeks
Bank Account approval 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Internet Banking approval 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks
Engagement completion 1 week 1 week 1 week 1 week 1 week 1 week 2 weeks
Total engagement period 10 weeks 11 weeks 12 weeks 11 weeks 11 weeks 11 weeks 13 weeks

Videos on Ireland company formation

Ireland corporate services – client case studies

  • Mongolian investor establishes an Irish holding company for global investments

    Our client, a Mongolian seasoned entrepreneur wished to establish a holding company in Ireland after consultations with his lawyers. The holding company was to be utilized for investments in bio-pharmacy, biotech and manufacturing.

    Following our initial phone discussion with our Client on i) their intended use of the holding company ii) proposed corporate structure and iii) our engagement fees and timelines, our Client confirmed their interested to proceed with the setup.

    • Engagement planning

      • Our Client completed, signed and emailed a scan copy of our engagement letter and settled the first instalment for Ireland company setup and bank account opening.
      • Healy Consultants Group advised our Client on the legal requirements including requirement for a registered address, tax number and company secretary. Our Team sent the proposed corporate structure to our Client for approval.
      • The Client then provided the due diligence documents in line with our Firm’s compliance and KYC process requirements.
      • Healy Consultants Group drafted a detailed project plan mapping out the step-by-step process of Irish company incorporation, tax registration and bank account opening.
      • We also drafted a detailed business plan for the new holding company outlining the proposed structure, potential suppliers and customers and the intended business activity of our Client in Europe.
    • Company incorporation

      • Healy Consultants Group submits the proposed company names to Companies Registration Office (CRO) for consideration. Unfortunately, all the names provided by our Client were rejected and we reverted to the Client for additional names. Our team then proceeded to reserve our Client’s company name.
      • In accordance with Irish Company Law, we appointed our Client’s partner based in Spain as the director who is ordinarily the European Economic Area (EEA).
      • Healy Consultants Group emailed our Client the legal forms for company incorporation for signature by each shareholder and director and requested them to email return to us. Thereafter, we submitted the formal application for incorporation to CRO.
      • Within 5 business days, we secured the certificate of incorporation from CRO and issued the same to our Client together with the i) share certificates and ii) constitution, for signatures and email return. The Client then settled our second fee instalment.
    • Post-company incorporation

      • During company incorporation, Healy Consultants Group simultaneously contacted multiple global banks to secure their interest in our Client’s business. Fortunately, a reputable American bank expressed interest in welcoming an application from our Client.
      • Following company incorporation, our banking team prepared the necessary bank forms including a board resolution appointing bank signatories and emailed to our Client for signatures and email return.
      • Thereafter, Healy Consultants Group arranged an online meeting with the Client and the bank to discuss the Client’s intended business and to complete their KYC process. Following which the bank proceeded to finalize their due diligence process and advance account opening.
      • Within 3 weeks the bank approved the USD bank account and requested the client to inject the minimum deposit as agreed in their online meeting discussion.
      • Healy Consultants Group also prepared the tax registration forms and emailed our Client for review for accuracy and signatures. Thereafter our team submitted the tax registration application to the Irish Revenue Department.
      • Within 3 weeks, Healy Consultants Group secured the tax registration number and email the tax certificate to our Client.
      • Healy Consultants Group’s the collated all corporate documents including i) Certificate of Registration ii) Constitution and Share Certificates iii) Tax Certificate, and emailed the same to our Client.
  • International corporate bank account opening

    Background

    • In October 2020, our Client approached Healy Consultants Group to assist with setting up a corporate bank account for their Ireland entity.
    • Once we received all the due diligence documents, the signed engagement letter and payment of all our fees, we proceeded with the engagement.

    Engagement planning

    • Healy Consultants Group prepared a draft business plan detailing our Client business activity, financial projections and proposed banking transactions.
    • We sent this to our Client for review and input (if any) and email return.
    • Once the Client confirmed all details were correct, we sent the Business Plan for the directors’ e-signature.

    International corporate bank account opening

    • Healy Consultants Group approached multiple Irish and global banks to secure in writing their interest in welcoming a corporate bank account opening application from our Client.
    • We received a welcome email from a few banks, and the Client chose the bank he preferred to proceed with.
    • Healy Consultants Group completed and submitted all pre-approval documents to multiple banks for review and approval.
    • Two banks located in Ireland and Macedonia responded positively, and our Client chose to proceed with both of them.
    • Healy Consultants Group submitted the applications to all the banks. The bankers then scheduled calls with our Client for KYC and verification process.
    • Unfortunately, the bank in Ireland decided not to proceed with the onboarding process as neither the director nor shareholder were resident in Ireland.
    • After a further call with the bank in Macedonia, the bankers reverted requesting more information and documents. At this point our Client decided not to proceed with this bank because of the delays from the bank.
    • We approached more banks and received a welcome email from a bank in Puerto Rico.
    • Healy Consultants Group submitted a quality application to this bank. The banker then scheduled calls with our Client for KYC and verification process.
    • This process was smooth, and the client then received internet banking instructions from the bank in order to set up their online banking portal.
    • Our Client could now sign contracts, issue invoices, receive funds and pay suppliers through their newly-opened corporate bank accounts.
  • Introducing innovative education software solutions for young families in Ireland

    Background

    • Our Client is innovative-driven entrepreneur interested in provision of quality mobile app for young children and families looking to expand their educational horizons while playing i) interactive puzzles, and ii) games;
    • With experience and background in the sector, our Client expects her mobile app to become trending and popular among young families;
    • Our Client decides that an Ireland company dealing with the software and content creation is the perfect global structure to operate such IT business. Our Client remains positive for the image of the company that Ireland creates and expects to score a number of lucrative business deals with local content creators;
    • Our Client also wished to retain 100% control of the company in limited liability structure;
    • Our Client currently lives in the UK, and consequently can always visit a branch of an Irish bank operating in the UK if required to verify her signatures.

    Engagement planning

    • During a conference call via Skype, Petar in detail described the steps required to register a new business in Ireland and advised our Client of Healy Consultant’s services and associated professional fees;
    • Mr. Aidan Healy, the managing director of Healy Consultants, further described during the call that while Ireland is not a difficult place to do business, nowadays banks require proof of business globally and may request our Client to personally visit a branch of their bank in order to verify her signature;
    • Following the conference call, our Client sent us a signed and stamped Healy Consultants’ client engagement letter and begin provision of most required due diligence in a scanned form;
    • Our Client chose Pay Pal as preferred method of fee payment, and provided Petar immediately with Pay Pal transfer slip;
    • Now that our Client formally engaged Healy Consultants, Petar began to plan and prepare a detailed project plan for our Client. Our team on the ground will submit quality applications to the Irish business registry while Petar began communication with a national bank in order to obtain confirmation of Interest;
    • In the same time our senior management team based in Singapore oversees the deliverables and updates our Client to ensure our Client received weekly updates with multiple engagement deliverables.

    Company incorporation

    • Immediately after fee settlement, Petar provided our Client with a detailed company structure table for approval. Following approval over Skype, Petar began to prepare initial A1 company application forms which need to be signed or e-signed by our Client. Because Healy Consultants provides local resident Ireland director, Mr. Healy will need to sign off the A1 forms as well;
    • Following completion of the same, Petar submits quality company setup application and successfully registers our Client’s business in Ireland.

    Other services

    • Our Client advised she will require tax registration, and Healy Consultants prepared the relevant form required for completion of the same.

    Corporate banking

    • Having the company registered successfully, Healy Consultants’ Banking Team prepared and completed a set of corporate bank account opening forms with the national bank in Ireland. As part of our complete company setup service, our Client received a detailed business plan describing the company’s activities and reasons for setting up in Ireland, while not operating from Ireland. Our business plan includes also brief on the expected cash flows, target markets and expected debit card requirements;
    • Unfortunately, all corporate bank account opening forms need to be submitted in original. Petar obtained Mr. Healy’s signature as resident director, and immediately after, he couriered the complete banking set to our Client’s preferred address;
    • Following submission to the bank, our Client obtained corporate IBAN numbers within 3 weeks and managed to log in the online banking and initiate payments a week later.
  • Multi-national Client sets up a business in Ireland

    Our Client is a company specialized in creating, manufacturing and distributing the best blends and richest essential oils worldwide. Healy Consultants Group already set up several companies for our Client. Our Client decided a company in Ireland would allow them serve the European market efficiently.

    Before Healy Consultants Group commenced Irish business set up, our Client i) signed our engagement letter and ii) provided the required due diligence (click here). Thereafter Healy Consultants Group prepared a detailed project plan that mapped out step by step the 5 week Irish engagement.

    Company incorporation

    While agreeing the optimum corporate structure, Healy Consultants Group informed our Client re i) legally minimizing international tax and ii) every Irish LLC must appoint a resident director who is either a EU citizen or a foreign national with a valid residency permit. Our Client could not supply a resident director. Consequently, Healy Consultants Group provided our Client an Irish passive nominee resident director. Our nominees do not play an active role in the business.

    The process of incorporation was quick and straightforward and within 1 week we provided our Client with i) a certificate of registration, ii) a lease/agreement for an Irish company city center business address iii) the Memorandum and Articles of Associations iv) share certificates and v) the registers of director and shareholders.

    Corporate bank account

    After discussing the different banking options, our Client chose to open a corporate bank account in Germany and London. We communicated with our preferred bank officers to agree the multi-currency corporate bank account opening strategy. Thereafter we filled the corporate bank account forms with the information we had on hand and sent them over to our Client for review, signature and courier return; The bank also requested us to notarize the Irish company documents. Healy Consultants Group also prepared a detailed business plan to optimize the probability of successful corporate bank account approval.

    Within 3 weeks, the bank provided our Client directly the corporate bank account number and within 2 additional weeks, the banks couriered the complete welcome package to our Client’s preferred address in USA. The welcome package included the internet banking tokens and ATM cards.

    Conclusion

    Healy Consultants Group successfully completed the engagement one week ahead of schedule. We couriered a quality complete company kit to our USA Client preferred address, including a Client questionnaire.

    Following completion of the above, our Client appointed Healy Consultants Group to complete monthly bookkeeping reporting to the Board of Directors. We also timely complete our Client’s annual legal, accounting and tax obligations.

Irish company setup – Frequently asked questions

  • Why should I set up a small business in Ireland?

    There are many advantages of business setup in Ireland including i) low tax rates ii) an excellent labor force and iii) tax holiday of up to 3 years.
  • If I want to setup an LLC in Ireland, do I need resident directors?

    Yes – in most cases, an Irish LLC setup requires at least 1 resident director in the EEA. Healy Consultants can provide resident director services for Ireland business. If our Client would prefer not to have any directors in the EEA, they can deposit a €25,000 guarantee with the Irish government.
  • Which Irish authority deals with setting up of companies?

    The Companies Registration Office handles registration of Ireland companies.
  • What is the most common type of company that foreigners establish in Ireland?

    Most foreigners setup an LTD company in Ireland.
  • How can I set up a company in Ireland?

    Healy Consultants can help you set up your preferred type of business entity in Ireland. Our Ireland company setup services include i) incorporation ii) business license registration iii) immigration services iv) employment strategies v) corporate banking solutions and vi) office rental/ virtual office setup and vii) tax planning.
  • Which banks should I consider for Ireland company formation?

    Although several Irish corporate banking options will be available for our Clients, Healy Consultants recommends internationally renowned banks such as HSBC and Standard Chartered.
  • Can I access internet banking with my Ireland corporate bank account?

    Yes. Corporate banking in Ireland provides our Clients several services including – i) internet banking and telephone banking ii) checking accounts iii) savings accounts iv) debit and credit cards v) fixed term deposits and vi) wealth management.
  • I am thinking about forming a new business in Ireland. Is Ireland online corporate banking safe for cross border transactions?

    Yes. Healy Consultants works with highly reputable banks in order to ensure safe corporate banking for our Clients in Ireland.
  • How to open a bank account during formation of an Irish company?

    For opening a corporate bank account in Ireland, our Clients will have to submit some due diligence documents to Healy Consultants. Most banks in Ireland ask for the following documents i) company M&AA ii) copies of ID of company owners and officers iii) a bank mandate form and iv) certificate of incorporation.
    Healy Consultants will try its best to prevent our Client from having to travel for corporate bank account opening in Ireland.
  • I wish to form a company in Ireland and get a loan from a local bank. Can Healy Consultants help me?

    Yes. Healy Consultants will assist our Clients in this regard. Irish banks are willing to provide finance to an Irish resident company if the following conditions are met i) good business-plan ii) availability of collateral assets iii) experience of business owners iv) last 3 years audited financial statements v) realistic feasibility study and vi) project strength and weaknesses analysis (SWOT).
  • Can an Irish company conduct international business?

    Yes. If properly structured, an Irish company is an excellent tax-efficient corporate vehicle through which to conduct international business.
  • What makes an Irish company suitable to use as a European headquarters?

    Ireland has a well-developed business and legal infrastructure, has a stable government and is a key member of the European Union (EU). In addition, Ireland has the lowest corporate tax rate in Europe, at 12.5%.
  • What makes Ireland a good base for international companies?

    Ireland has a well-developed business and legal infrastructure, has a stable government and is a key member of the European Union (EU). In addition, Ireland has the lowest corporate tax rate in Europe, at 12.5%. Also, Ireland has an outward-looking policy towards foreign investment, and offers a range of incentives for entrepreneurs and organisations.
  • What are the tax incentives associated with incorporating a company in Ireland?

    Ireland has the lowest corporate tax rate in Europe of 12.5%. In addition, the country has signed double taxation agreements with 48 countries, which offer protection from duplicate taxation.
  • What are the negative tax implications of setting up an Irish business?

    Ireland-resident companies are liable to pay capital gains tax of 20%.
  • Is it possible to set up an Irish offshore company?

    Such a structure does not exist. Under the Finance Bill of 1999, all companies incorporated in Ireland are classed as ‘resident’ and are liable to pay corporation tax on their global income.
  • Are there any incentives available to investors planning to set up in Ireland?

    The Irish government provides grants, loan guarantees and other incentives. Some of the most popular schemes include the R&D Capability Grant Scheme, Research Technology & Innovation (RTI), the Innovation Partnership Initiative and the EU Framework Programme.
  • Does an Irish company need to prepare and submit annual accounts?

    Yes. They must be audited and submitted annually to the Irish Companies Registration office.
  • How many directors and shareholders must an Irish company have?

    Under Irish Company law, all companies must have a minimum of two directors, and a minimum of one shareholder.
  • Does an Irish company need a resident director?

    Yes, at least one director must be resident in the European Union (EU), though she/he need not be an Irish citizen.
  • Will my Ireland company have to pay taxes on profits derived from outside Ireland?

    Yes, Ireland imposes corporate tax on worldwide profits.
  • When do I need to file my corporate tax returns in Ireland?

    A company is required to file for tax returns within nine months of the end of its accounting period.
  • What is the corporate tax rate in Ireland?

    The corporation tax rate in Ireland is 12.5%.
  • If I set up a company in Ireland, will it be seen as tax evasion?

    No, although corporate taxes are low in Ireland, it is completely legal. Big companies like Microsoft have set up their European headquarters in Ireland.
  • How can I find accountants for my Irish company?

    Healy Consultants can prepare financial reports, file annual returns and maintain accounting records for Ireland companies.
  • What are Ireland work permit visa requirements?

    You can find all relevant information regarding Irish employment permits on the website of the Department of Jobs, Enterprise and Innovation.

Contact us

For additional information on our business registration services in Ireland, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Sales & Business Development Manager
  • Contact me!