Company in Ireland

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in Ireland

Ireland has a dynamic and global economy, highly dependent on trade. Its GDP growth averaged 6% between 1995 and 2007, which earned it the name “Celtic Tiger.” In response to the crisis, the Irish government has implemented a series of national economic programs designed to reduce prices and wage inflation, invest in infrastructure, enhance the workforce’s skills, and promote foreign investment.

Types of companies

There are several types of businesses for foreign investors:

• Limited liability company (PrC)

•Public limited company (PLC)

• Limited partnership

• Branch

Limited liability companies (PrCs) are the most common corporate status of medium and large businesses. They are usually used by foreign companies to become established in the country.

Tax system

The Irish tax environment is particularly favorable with a corporate tax rate of 12,5% of all operating revenues, be they the result of industrial or other activities. Thanks to the recent measures to stimulate the economy taken by the Irish government, all Irish companies created after 14 October, 2008, receive a full tax exemption for the first three years of their activity (i.e., a tax exemption on profits amounting to 320,000€!).

Under EU law, the free movement of capital is the rule.

Foreign investors are offered a range of financial incentives in Ireland. Among others, grants and loans from the IDA (Industrial Development Authority), grants by the state, or tax credits for R&D expenditures.

Accounting

In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits are mandatory.

Tax rate

• Income tax: 12.5%. Full tax exemption on the first 3 years for industrial and commercial companies created after 14 October, 2008. • Tax on capital gains:12.5% • Tax on interest and royalties: 20% • Income of foreign companies:12.5% • Tax on dividends: 20% • VAT: 21,5%

Minimum capital

No minimum threshold

Shareholders

Minimum of one associate

Foreign shareholders

Yes

Directors

At least two directors and a secretary-general. The director and the secretary-general must be residents of the EU.

Foreign holding

Yes

Legal obligations

Mandatory audit of annual accounts All companies must submit an annual declaration to the tax authorities, whether they have made transactions or not. If the company did not conduct business transactions, it may submit an annual report of non-commercial accounts.

VAT registration (if necessary)

In order to register for VAT, you must demonstrate a business in Ireland. Ideally, the authorities will want to see an office with employees. However, if you include with the request evidence of your activity in Ireland (e.g., a copy of a contract with an Irish company, a supplier, customer, or other), this may be acceptable.

Deadline

1 week from the receipt of all available turnkey company documents

Headquarters

Local headquarters and secretary-general (beginning from the second year) Business address in Dublin, telephone transfer, fax, and mail

Accounting

If the company has conducted business transactions in Ireland or abroad, it must submit an annual financial report reflecting its activity for the last fiscal year. Preparation of a financial report, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information