As you might have probably guessed, fintech simply refers to financial technology. Ireland happens to be one of the major hubs for entities operating in the field of financial services and technology (fintech). It is one of the most targeted European countries by many multinational companies operating in this field. Two major reasons behind this are its skilled workforce and a favorable tax regime.
The Irish jurisdiction does not have any specific regulatory structure set up for fintech companies. However, this does not mean that fintech companies in Ireland are completely liberal, there are some regulatory measures that they are expected to follow.
Registering a Fintech company in Ireland
The process of registering a fintech company in Ireland is no different from that of other Irish entities. Fintech investors should follow the standard registration procedure set in place by the Companies Act. First, you should choose a legal entity under which you will register your company. The next step is to satisfy all tax obligations, hire your workforce among other compulsions.
As mentioned earlier, Ireland has quite a diversified fintech industry. Below is a short list of business activities that fall under this sector:
- financial advisory;
- asset management;
- mobile banking;
- transactions and payments;
- security and trading
- currency trading;
It is important to note that the above list isn’t the ultimate. Back-end operations performed by financial institutions, payments software among other analogous services not listed above also fall under this category.
The regulation of fintech companies in Ireland
Financial technology companies in Ireland which do not involve the provision of services and do not fall within a regulated activity as defined by the Irish law fall outside the regulatory framework. However, those fintech companies which involve regulated activities are mandated to get additional authorization from the Central Bank of Ireland(CBI) before they can start their operations.
Why Ireland is becoming a global hub for fintech companies?
Opening a financial technology company comes with a plethora of benefits and offers you higher chances of success than any other country.
- Skilled workforce
The financial technology sector in Ireland is recognized as a very important employer in the Irish market, with over 45 000 employees. Ireland offers an experienced workforce, making it easier for multinational financial companies to easily open branches in Ireland without spending a lot on training an inexperienced workforce.
- Innovative High Potential Start-up Fund
Fintech founders can benefit from this funding provided by Enterprise Ireland.
- Competitive Start-up Fund
This funding is available for a few specified fintech sectors such as artificial intelligence, banking security and the Internet of things.
Opening a fintech company in Ireland is indeed an interesting endeavor, however, it can be daunting. If you ever encounter some obstacles during the process, you can reach out to expert consultants at SIGTAX. Our highly experienced and informed team is ready for your call and eager to answer all the questions you might have.