The pace of economic development in Ireland surprises everyone. That is why this country is considered attractive for business registration. Foreign investors who turn to Ireland Corporate Services are also aware of the good conditions regarding taxation in this country. Consulting companies are already ready to provide professional assistance in the registration of a legal entity. But investors should still be aware of certain nuances.
Why Choose Ireland Corporate Services for Doing Business
Ireland is an independent state and has been out of the European Union for almost half a century. Today it has a stable economy with a proper taxation policy. This attracts foreign investors, who are willing to invest their money to develop the region.
Of course, it was not always like that. For a certain period, the country went through a long breakaway from the United Kingdom. However, its government made the right decisions, helped reduce tax burdens, and attracted foreign capital. At the beginning of this millennium, the country experienced a dramatic economic and technological leap forward. Ireland became the center of technology development and finance attraction across Western Europe.
During the World Financial Crisis, its performance slowed somewhat. But economic growth did not stop. Now it is economically profitable to open a business in this country. It allows you to enter new markets around the world and receive preferential tax treatment.
Perhaps this country is not the most attractive of all the countries in the world. However, it is consistently at the forefront in terms of ease of operation and taxation. At the same time, it is not an offshore zone. However, the corporate tax is one of the lowest in Europe (12.5%). Thanks to the provision of various benefits this rate can be significantly reduced. Therefore it is very profitable to register a firm in Ireland.
Registering an IT Company
The biggest profits in the world right now come from the IT business. That is why states do everything to attract such companies to register legal entities in their country. Ireland has managed to create the right policy with a favorable environment for this market.
Today most of the major giants in the development of information technology have their companies here. And the reason for this decision the management of the companies Google, Facebook, Twitter, and others call it favorable conditions of registration.
For example, in Ireland, the registration of intellectual property rights will allow using a quarter of the tax on expenditures related to research work. The tax on income for patents and copyrights will be around 6.25%. Such conditions are rarely offered in other countries.
Taxation
On average, a corporate tax of 25% is levied on a company. However, it applies only to intermediary companies. The most common are holding companies and investment companies.
If your company will be engaged in the production or sale of goods, the tax rate will be reduced to 12.5%. Similar measures apply to trading firms.
When paying dividends to non-residents in Ireland, no tax is applied. VAT in the country is paid at 23%, and capital gains tax will be 33%. Also in Ireland, the government has signed about 60 agreements with other countries. This helps to avoid repetitive taxes in different states. Some agreements help with the exchange of taxes between states.
Requirements for companies to register as a legal entity
The most optimal form of ownership for a company is LLC. Most corporate services in Ireland offer it for work. To register, the following conditions must be met:
- the minimum amount of the authorized capital of 100 Euros;
- quarterly submission of VAT returns to the appropriate authorities;
- annual filing of financial statements;
- the first accounts must be filed within six months;
- tax returns must be filed within 9 months from the date of registration of the company;
- two directors and one shareholder;
- at least one of the directors is an EU resident;
- the first shareholders’ meeting may be held one and a half years after the registration of the company. Thereafter they are held annually and only in Ireland;
- providing audited accounts if the company’s turnover exceeds 8.8 million euros.
If these conditions are met the company can safely operate in Ireland. In this case, LLC is allowed to issue registered shares without the right of alienation.
Average cost of company registration
The cost of services from consulting companies can vary greatly. For example, some offer assistance in opening an account with major banks as part of their package. Most cooperate with Allied Irish Bank. However, to open an account, the personal presence of the director is required. On average, the cost of such services is in the range of 450 Euros but can be as high as 800 Euros.
In Ireland, it is not possible to open an account for an offshore company. However, it is possible to open a company where the main shareholder is such a company. But such actions can attract the attention of Compliance. When checking the company must have a real business in another country (production, trade, etc.).
Such a procedure may take about 10 working days. After opening an account it is possible to work in an online format. Regarding other costs, all costs in corporate services Ireland can be estimated at up to a thousand euros on average.