Company Formation in Ireland
The factors that made Ireland a prime jurisdiction for European company formations are the simple process to form an Irish company, low corporation tax rate, less bureaucratic burden and the Euro being the official currency in Ireland.
Types of Companies in Ireland
| When it comes to company formation in Ireland, the Private Company Limited By Shares (LTD) is the most frequently formed type of corporate entity within the Republic of Ireland. |
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| The company formation process for a Public Limited Company (PLC) is the same as for a limited company, apart from the fact that at least 7 shareholders and a minimum paid up share capital of 9.523,03 EUR are required to form a PLC. |
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| Curios enough a Limited Partnership (LP) in the Republic of Ireland is governed by British Law, the Limited Partnerships Act 1907. The advantages of a Limited Partnership are flexibility, no capital contribution and no annual filing requirements. |
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| International companies often prefer to form a Branch Company (also known as Foreign or External Company) in Ireland in order to explore the European markets and to benefit from low Irish corporation tax rate at 12,5%. |
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The Irish advantage
| An Irish company is subject to less bureaucratic burden compared to other European companies. Ireland is ranked No. 4 on the Index of Economic Freedom. |
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| Ireland is one of the old EU countries. By way of forming either a local company in Ireland or an Irish branch international clients can easily access and explore the European markets. |
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| There are no restrictions on foreign company ownership and directorship in Ireland. EU residents enjoy freedom of establishment in Ireland. |
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| The official currency in Ireland is the Euro, a save haven compared to the British Pound and the US Dollar. There are no currency exchange risks if trading withing the European Union. |
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| The Irish corporation tax rate is only 12,5%, one of the lowest in Europe. A generous 120.000 Euro tax exemption is available to small Ltd companies which started trading in 2009. |
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| Ireland also benefits from an extensive network of international tax treaties. |
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| The Irish company legislation provides a secure legal framework to run an European company. |
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Irish Company Formation - a true EU solution
Forming an Irish company is beneficial for overseas clients who wish to explore the European market or for EU clients who want to avoid dealing with complicated company registration in the new EU countries. A company formation in Ireland is also the best choice if the business sells goods within the European Union.
