Benefits of forming a company in Ireland

When forming a company one of the first questions you will need to answer is why Ireland? There are many Benefits of forming a company in Ireland. If you are a resident of the European Economic Area (EEA), Ireland is probably the best choice. Why is that? As a member of the EEA, Ireland offers many advantages. The Euro currency brings a transparency in prices and you’re not dependent on floating exchange rates. You benefit from the freedom of establishment and more than 60 double taxation agreements between Ireland and other states.

Ireland has an excellent pro-business environment. According to the IMD World Competitive Yearbooks from 2012 up to 2014 Ireland has improved its worldwide rank from 20 to 15, being ranked for Economic Performance in 2014 on rank 19 and Business Efficiency in 2014 on rank 4, following Hong Kong, the USA and Switzerland. Ireland offers a stable and well-developed legal, regulatory and corporation environment. You don’t have to struggle with bureaucracy as the process of forming a company is pretty straight forward, at low cost rate, within 3-5 working days and minimum effort. Any changes to your company structure can be amended easily. Ireland offers well-educated professionals, speaking perfect English. A business based in Ireland is an ideal starting point to establish relationships in the USA and the EU.

The Irish rate of corporation tax at 12.5% is besides the rate in Cyprus, the lowest in the EU. The EU average corporation tax rates according to KPMG is at 21.34%. Furthermore, when forming a Limited Company in Ireland you benefit from the limitation of liability on the issued capital, which minimum is 1 Euro.

In conclusion forming a company in Ireland offers you the benefit to enjoy all the advantages of having a business incorporated in the EU, but at a much lower corporation tax rate, less bureaucracy boundaries and with a strategic promising position when entering the US- or further EU-markets.

By: Wiebke Wolter