Establishing a company in Ireland – Ireland, the green land full of traditions, Celtic culture and music in pubs, chosen by Facebook and Apple as half to internationalize in Europe.
There are several reasons for choosing Ireland. In this regard, many organizations work to attract foreign capital and companies interested in internationalizing right here. IDA Ireland is an institution that has the task of attracting foreign capital to the now unique Anglophone state of the European Union. The big multinationals go to Ireland because of the guarantees and low taxation offered by the green country.
But how does taxation work and how an Italian company could internationalize in Ireland?
Establishing a company on site is always the best way to operate directly with direct control. Let’s start with the practical aspects.
In Ireland there are different types of companies:
- Limited liability company (LTD)
Company with Designated Activity (DAC)
Limited liability company (CLG)
Public limited liability company (PLC)
Limited liability company (ULC, PULC, PUC)
Limited partnership (LLP)
Societas Europaea (SE)
HOW TO SET UP A COMPANY
We highlight the LTD because the one of greatest interest. The LTD company corresponds in Irish company law to the ordinary Italian SRL. The SRL assumes a minimum share capital of 10 thousand euros, instead in Ireland it is sufficient to pay 1 euro (Although not recommended for the credibility of the company). Very similar to our Simplified SRL. For the limited company (PLC) the nominal value of the share capital must not be less than 25,000 euros.
To set up a company it is necessary to send a communication to the CRO, counterpart of the Italian REA, a registry office where all the companies and information regarding the life of the companies are registered.
The registration fee is 50 €, it can be done online and the incorporation takes about days. The statute of an LTD is very generic and it is therefore possible to carry out any activity using the same company, without the need to change the corporate purpose. After following these directions, here are the steps to open a company in Ireland:
Give a name for your company, verify that it has not already been taken
Opt for the best corporate type
Find a physical place to set the registered office address
Identify directors, shareholders and the secretary
Create the articles of association outlining the company’s purpose and its corresponding NACE code.
Open a company checking account and deposit the share capital according to the type of company
Submit all required signed documents to the Company Registration Office (CRO)
Register the company with the Irish tax authorities (Revenue Commissioners)
In Ireland there are two rates: 12.5% and 25%.
After the economic crisis, all new companies that have a turnover of less than 320,000 euros can benefit from the tax exemption for 3 years, if they fall within the pre-established parameters. The profits generated by commercial activities or the supply of services are taxed at 12.5% while the “passive” profits such as the rent of a property or the interest paid on bonds are taxed at 25%. If a company carries out both activities, each income will be taxed at the rate of competence.
The Revenue Commissioners (Irish Revenue Agency) may not grant the 12.5% rate and therefore claim the payment of 25% in the event that the company does not have its management and control from a physical location in Ireland. This is to prevent companies from being set up which do not take place or do business in Ireland. If you are a resident of Italy and you plan to internationalize your business in Ireland using a virtual and non-physical office, without hiring employees residing on the spot and you want to be the sole partner and director, your company will fall exactly in the identikit that the office of the Revenue has prepared to locate the “substance-free” LTD.
Irish VAT (VAT) is equal to 23% to be paid bimonthly and there are no minimum social security charges for the administrator, contributions will be paid in proportion to the compensation if received. There are no sector studies or income presumptions of any kind nor the reversal of the burden of proof in the event of tax audits.
The notary is not needed at any stage of the company’s life.
Corporate tax rate in Ireland is 12.5%.
Large network of bilateral tax treaties with over 70 countries.
Benefits of the euro area
Ireland has the youngest population rate in Europe
The Irish school system ranks among the top ten countries in the world and offers investors multilingual and highly qualified staff.
Continued economic growth, low unemployment rate, large export sector, place with the largest foreign capital inflow worldwide
Competitive and varied business environment, with a significant number of multinational companies
It is possible to open a company in Ireland in 1-2 weeks. For more information about the internationalization of your company in Ireland or in other countries, fill out the form below. An expert will reply without obligation as quickly as possible.