Business

What entrepreneurs should know about company formation in Ireland?

To understand why you should look into company formation in Ireland, you have to know that Ireland is a member of the European Union and it is not a country considered as a fiscal paradise. However, it offers extremely advantageous conditions to large groups like Google, Apple, or eBay who know how to take advantage of complex tax incentives offered in Ireland. Ireland is above all a country that promotes entrepreneurial initiative and especially new technologies. The sectors of predilection for investors are e-commerce, FinTech, biotech, and CleanTech.

If you are looking to extend your business activities in Europe from a European country, starting a business in Ireland is also an excellent choice to establish your headquarters. Regarding the process of company formation in Ireland, the country offers important advantages. For example, it doesn’t apply withholding tax in Europe or with the countries that have signed a treaty, so dividends can flow freely back to the shareholders. The dividend tax is 0%.

Types of companies in Ireland

The most common form of a company used by foreign entrepreneurs in Ireland is the Private Company Limited by Shares. This company is recognized easily because it uses the term “Ltd”. An Ltd is similar to a limited liability company. There are various other legal forms available for company formation in Ireland, but this structure is usually preferred due to its characteristics:

– Only one shareholder is sufficient to form the company and there can be a maximum number of 149 shareholders;

– Shareholders of Irish companies can be natural or legal persons;

– 100% of the shares can be held by a non-resident;

– At least two company directors are required, one of whom must be a European resident;

– Anonymity is possible under certain circumstances.

After starting a business in Ireland, it is mandatory to maintain financial accounts and publish them every year. As a result, Ireland is therefore considered an onshore jurisdiction.

Advantages of Irish companies

Many foreigners are interested in company formation in Ireland because Irish companies provide certain advantages that are worth taking into consideration. Among the most important advantages are the following:

–  The set-up costs are very low, compared to other jurisdictions;

– It is not necessary to pay a sum to constitute the share capital, under certain conditions;

– Centralized and efficient administration;

– Short timeframe for the incorporation procedure;

– Anonymity is possible under certain conditions;

– For limited liability companies, the liability of the directors and shareholders is limited;

– Ireland is a great financial center for commercial, trading or holding activities;

– Easy access to European markets.

Other factors to consider for company formation in Ireland are related to the economic evolution of the country. For example, the Irish economy grew by more than 5% in 2014 and by 7.8% in 2015. It had one of the strongest European growths in the last years. Moreover, the unemployment rate has been decreasing over the last years and the cost of labor is one of the lowest in Europe due to the development of the social environment.

For more information regarding the types of legal forms available for company formation in Ireland, tax optimization and other important factors to consider for the incorporation procedure, it is advisable to acquire the services of experts in this field, who are knowledgeable about the Irish business environment and the legal framework in the country.