Rory Conway, Associate Director in Dublin, examines the six compelling reasons for incorporating in Ireland. From streamlined setup processes to an advantageous tax system, Ireland offers several benefits for businesses looking to establish a presence in Europe.
Why register a company in Ireland?
1. Ease of setup and low bureaucracy
Ireland is considered one of the most efficient places to set up a company globally. Unlike other EU jurisdictions that may take weeks, Ireland allows businesses to establish their entities within three to five business days. Moreover, the country is a low bureaucracy jurisdiction, making it straightforward to make changes to directors and shareholders, without excessive paperwork.
2. Competitive corporate tax rate
One of the most significant considerations for incorporating in Ireland is the favourable tax regime. Currently, the corporate tax rate stands at 12.5%, making it one of the lowest in the EU. Although it is set to increase to 15% for major companies from 2024, it remains highly competitive in comparison to other jurisdictions. Additionally, Ireland's extensive double tax treaty network, comprising over 70 agreements, helps to minimise double taxation and offers tax advantages for global businesses.
3. Tax efficiency & section 110 regime
Ireland's tax efficiency is further enhanced by its Section 110 regime, allowing for tax neutrality if certain transactions meet specific criteria. While scrutiny on this regime exists, it remains a significant reason for foreign investment and companies setting up in Ireland. However, it is essential to note that changes to this regime might occur in the future.
4. Varied company structures
Ireland provides a wide variety of company structures allowing businesses to tailor their needs to the most appropriate company type. These options include limited, unlimited, and public limited companies. In addition, Ireland offers a designated activity company, another type of private company which has proven popular for international securitisations. The jurisdiction is also typically used for companies raising finance or listing debt, which provides businesses with flexibility and choice when selecting their company structure.
5. Highly educated workforce & professional services
Ireland boasts access to a highly educated and young workforce. With approximately 40% of the Irish population being under 29 years old, Ireland’s future as the jurisdiction of choice is strengthened long-term. This demographic, along with the country's proximity to highly skilled corporate service providers, creates an advantageous environment for businesses. Ireland offers a network of professional services, including auditors, legal firms, and corporate service providers, which are essential for smooth transactions and ongoing support.
6. Convenient time zone & EU membership
Ireland's location in a convenient time zone and its membership in the EU and the eurozone are advantageous for businesses. Its proximity to the UK and its status as an English-speaking country within the Eurozone make it an attractive option for companies seeking to expand their operations internationally.
How can Ocorian help with incorporating in Ireland?
We can assist with the set-up and onboarding of your company in Ireland. Our capital markets team in Dublin boasts a wealth of experience, providing corporate administration, accounting, tax compliance and regulatory reporting services to assist throughout the life of the company.