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Advantages of Setting Up a Limited Company in Ireland

26 August 2016 By Ann Donnelly


Are you looking for a base for your international operations?

Setting up a limited company in IrelandThe 2008-2012 Business Environment Ranking of the Economist Intelligence Unit placed Ireland 11th globally out of 82 countries, naming it as one of the most attractive business locations in the world. Furthermore, Forbes 2011 named Ireland as the best country in Europe in which to do business. (Source: IDA)

With a limited company in Ireland, you can avail of the following advantages...

  • easily trade services and/or products within Europe.
  • benefit from low corporate tax rate, network of double tax treaties and other tax incentives.
  • be part of a thriving entrepreneurial community.
  • avail of an English speaking, educated mobile workforce.
  • benefit from pro-business state and semi-state initiatives to support start-ups in Ireland with practical and financial assistance.

Ireland is becoming increasingly attractive as a holding company location for foreign investors particularly where it is combined with a trading activity such as headquarter activities, treasury or research & development:

  • 9 out of 10 of the World's leading Technology and Internet companies
  • 8 out of 10 leading Online Game Companies and Platforms
  • 8 out of 10 of the world's leading Pharmaceutical companies
  • 15 of the top 20 Life Science companies
  • Over 50% of the world's leading Financial Services firms

Why do so many multinational corporations have international headquarters in Ireland?

  • Ireland is a member of the European Union and the European Economic Area (the "Euro Zone") which allows for easy trade of services and products throughout the EU, as well as other supports available from agencies supporting businesses in the area.
  • In Ireland a limited liability company enjoys low corporate tax ratesbeneficial cash flow. Ireland's Corporate Tax Rate of 12.5% is one of the lowest in the World. A 0% rate is also available, though subject to conditions and the benefit is limited to the amount of employers PRSI paid on staff salaries. You may also qualify for tax incentives for holding/headquarter companies and benefit from the Network of Double Tax Treaties that reduce withholding taxes.
  • Government Policies in Ireland favour foreign investment, including R&D activities through IDA Ireland, Shannon Development and Enterprise Ireland.
  • Ireland ranks highly year after year in comparisons for countries that are favourable to start up a business.
  • The Irish are known throughout the world to be highly skilled in technology and service roles and offer businesses here a great workforce to hire from.

Google is using a network of Irish companies to save millions in taxes. Filings that Google lodged with the US regulatory authorities indicate the multinational's effective tax rate has dropped from 39 per cent to 31 per cent, indicating it is saving approximately €100 million a year in taxes via its Irish business. Google has two Irish based operations, one of which, Google Ireland Holdings Ltd, received $388.55 million (€330.5 million) in royalty payments in 2004, its first year in operation.

In 2005 the Wall Street Journal reported that an Irish subsidiary of Microsoft was helping it reduce its tax bill by at least $500 million annually. The hitherto unknown subsidiary, Round Island One Ltd, made an after-tax profit of $3.8 billion in 2004, and paid $324 million in Irish corporate tax. (Source: Irish Times)

 Click here to Download Our Useful Checklist  "Information Required to Set Up a Limited Company in Ireland"

 

Tagged With: Frequently Asked Questions, Advice