The Republic of Ireland was recently ranked 7th by IMD business school based in Lausanne, Switzerland from a pool of 63 competitive nations well-known for business. This was an upsurge of five places after declining to 12th in the 2018 rankings. The chief cause of this decline was the Brexit issue.
Starting an Irish firm is an attractive prospect for a significant number of entrepreneurs hoping to start or diversify their operations into the European region.
Advantages of Setting up a Business in the Republic of Ireland
- Lesser Corporate Tax
Companies trading in Ireland are subject to one of the lowest tax fees incurred by businesses in the EU. The general outlook of the tax policies in Ireland is stimulating and appealing. The nation has recovered powerfully from the ravaging effects of the recession of 2008 and has since seen sustained economic constancy lately.
- Economic and Competitive Strength
As stated previously, the IMD found that Ireland continues to soar competitively. The IMD survey is one of the most esteemed indicators of how competitive leading nations are on the global stage. Rankings for each nation are determined using an exhaustive list that surpasses 235 parameters across four major areas. The Republic of Ireland especially excelled in the commercial efficacy and strength of economy categories in the survey, garnering a top-five placement for the former and coming in 6th place for the latter.
Another report, this time from IDA, saw Ireland maintaining her position as a powerhouse for carrying out business activity. The report contains information from a number of key indicators across a number of areas as well from the year 2018 to the end of the first quarter of 2019. One of the most prominent features in the report is the boom of the Gross Domestic Product (GDP) of Ireland to 7.4% in the opening nine months of 2018, a figure that only Malta beats in the entirety of the Eurozone.
- Growth of the Gross Domestic Product (GDP)
The Irish year-on-year Gross Domestic Product standing at 4.9% is a remarkable achievement , particularly when compared to the relatively lower collective average of 1.6% for the Eurozone. A major contributor to this gain has been the rise in the number of foreign companies investing in the Republic of Ireland. About 230,000 individuals are currently in the employ of Foreign Direct Investment (FDI) entities, an advantageous position for the people of Ireland as well. These corporations have expended well in excess of €19 billion on workers’ wages and salaries while about €6 billion is capital disbursement.
- Workforce Growth
Some of the biggest corporations in the world by annual revenue and influence such as Google, Apple and Facebook have each established their main offices for the European continent in the Republic of Ireland chiefly due to its suitably competent and qualified labour force and favourable tax policies. This trend has led to the replacement of 90% of occupations that had vanished during the recession era. Unemployment in Ireland plummeted to a meagre 5.7% at the end of the year 2018, significantly lower than the mean for both the Eurozone and the European Union. Additionally, Ireland has the highest proportion of young people in the EU, a key determinant for perpetual economic advancement.
All the above points illustrate the immense benefits presented by starting a business in the Republic of Ireland. Get in touch with our company formation professionals and legal experts for further details.