When registering a company, the destination choice does not only depend on the bureaucracy involved. It also encompasses the operating conditions the business will have to face in the future as well as its legal obligations to the authorities. Selecting between Ireland and other EC countries involves looking over the benefits the Republic of Ireland has to offer compared to its counterparts.
The business environment in Ireland has garnered itself a good reputation with investors globally. The government has managed to uphold good ease of doing business and high standards aimed not only at luring investors but also encouraging them to stay in Ireland. Another big pull factor is its tax regime which among other things gives it a competitive edge over its full EU member counterparts.
Tax-related benefits
The tax regime in Ireland is crafted to allow businesses to keep more of their income. The rate for corporation tax stands at just 12.5%, a figure lower than the majority of European tax authorities. Considering that jurisdictions like France and the UK have tax rates ranging between 26% and 34% it is not hard to see how Ireland has held its own as an ideal place to set up a private company.
Other tax benefits available to registered businesses manifest in the form of tax credit and exemptions under Irelands tax laws. Expenditure on research and development is liable to tax credit amounting to 25%. The Republic of Ireland has become a popular investment destination amongst tech companies and those in creative industries. This is owing to the fact that the Irish authorities do not charge stamp duty on transfers of intellectual property.
Ireland’s position as a member state of the European Economic Area offers benefits for companies which seek to offer their services throughout the region. Trade with other European countries does not incur the business a headache over currency exchange as Ireland has adopted the Euro as its currency.
Low bureaucracy
Company registration is relatively less stressful in Ireland due to the low level of bureaucracy involved. Once all necessary documentation has been completed and submitted it takes about 1-5 working days for a company to be fully incorporated. This is a major advantage if you want to incorporate your business quickly—it gives Ireland a competitive edge over other EC countries like Spain when it comes to company registration.
The low bureaucracy also extends to making amendments to the company details. Any changes can be directly communicated to the Companies Registration Office. This includes details such as a change in directorship. These changes do not need to be notarised before they are practised.
Workforce
The Irish workforce is a major advantage in its own right. Ireland boasts of a young and skilled workforce. The Irish government significantly invests in higher education to keep up with the demands of the labor market made up of employers in technology and the financial industry.
Ireland’s population is dominantly English speaking meaning its workforce is fluent in the language most used in the business world. Foreign investors will find this a big advantage when it comes to matters regarding communication. For more insights, reach out to our expert consultants at SIGTAX. Our well-informed and friendly team is ready to answer all your questions and smoothen your application process.
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