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Irish Companies

Ireland is known for its hospitality and beautiful scenery. Ireland also has many advantages which makes incorporation of an offshore or international style company something which deserves consideration.

The Republic of Ireland has a Common Law Legal System with parliamentary democracy based on the British parliamentary system. The Irish Constitution was only enacted in 1937 and is the cornerstone of the Irish legal system. This written constitution is a distinctive mark of Ireland when compared to its English neighbor. Only Irish citizens resident in the state can vote on amendments to this. Whilst this has only been in existence for less than one hundred years part of this constitution allows that all laws in existence prior to the formation of the constitution are carried over so in fact there are laws that date back to 1204. The European Communities Act 1972 means that treaties of the European Union are part of Irish law.

Ireland joined the European Economic Community in 1973, five decades after gaining independence from the UK and this is credited for the change from Ireland being known as an insignificant Island with no real identity in the world with a largely agricultural economy dependent on the UK to a modern technically advanced society dubbed as the ‘Celtic Tiger’. In January 1999 Ireland was one of eleven European Union Member States which launched the European Single Currency, the Euro replacing its original currency of the Irish pound commonly referred to as the Punt.

Ireland is ranked one of the wealthiest countries in the OECD, the economy is dependent on trade, industry and investment. In 2005 it was said that the Irish had the best quality of life following a period of very high economic growth boasting the highest growth rates in Europe during 1995 – 2007, partly due to its low corporation tax. Unfortunately Ireland was hit hard by the recent recession, however it is predicted that Ireland is expected to recover well.

Corporate Advantages of Ireland

Ireland enjoys a strong reputation especially in Europe like its neighbor Great Britain. Ireland however is often chosen for offshore incorporation above its neighbor for its low corporation tax of just 12.5% for companies with substance in Ireland. Ireland also has various incentives and somewhat less complex procedures when you compare the jurisdictions – Click here to read more regarding the benefits of Ireland 

The Capital Gains Tax in Ireland has been increased from 30% to 33% from 5 December 2012. Although a rate of 40% can apply to the disposal of certain foreign life assurance policies and units in offshore funds. The first €1,270 of taxable gains in a tax year are exempt from Capital Gains Tax. Persons that are not resident in Ireland are not liable for Capital Gains Tax on the disposal of assets situated outside the Republic of Ireland unless the proceeds are remitted into the Republic of Ireland. – to read more regarding Capital Tax in Ireland please click here

Ireland used to have a complex system with regards to Stamp Duty with numerous exemptions to this tax, but this was simplified in 2010. Since 7 December 2011 there is a single rate of 2% on all non-residential property with the first €10,000 no longer being exempt from this tax.

Ireland has over 60 double taxation agreements as well as provisions in the Irish Taxes Consolidation Acts (TCA) where a double taxation treaty does not exist which allow unilateral relief against double taxation in respect of certain types of income. There are also reliefs granted under several European directives such as the EU Parent Subsidiaries Directive, the EU Interest and Royalties Directive, the EU Mergers Directive and the EU Arbitration Convention. – to read more regarding Irish Double Tax Treaties please click here

Ireland Registry and Laws

The Irish Registry is known as the Companies Registration Office, referred to as CRO for short. Registering of Irish companies was first permitted under the Companies Act of 1907. The CRO has online registration and electronic filing facilities.
The CRO can take measures to deal with companies who do not meet their filing obligations such as filing their annual returns. These include prosecution of the company directors or striking the company off the register. But do not worry Chesterfield are on hand to assist with all filing and regulatory requirements. – to read more regarding the Irish Registry and laws please click here

Irish Banks

Irish Banks reorganized its banking sector with a full government guarantee to all deposit holders. Ireland is very bullish that despite its restructure and bail out that all deposit holders were paid in full. Ireland is now the golden boy once again earning recognition after recognition for its handling of its recession and it is going to be the first country to officially leave the bail out and is growing positively. The Irish Banking Federation have confirmed that the latest Central Bank statistics show a continued positive recovery. Ireland have entered into an agreement between the Irish Presidency and the European Parliament towards adoption of the Basel III agreement into European law hoping to improve the Banking sector further. – to read more regarding Irish Banks please click here

Irish VAT

The Republic of Ireland first introduced VAT in 1972 prior to its joining of the EU. Its VAT regime is largely based on the EU’s VAT directives. The standard rate of VAT in Ireland was increased to 23% from January 2012, although there are several reduced rates including 9% for tourist related activities such as restaurants, hotels, cinema, hairdressing and newspapers, for the period of 1 July 2001-31 December 2013. The minimum turnover for registering for VAT is EUR37,500 for services and EUR75,000 for goods. – to read more regarding Irish VAT please click here

Irish Structures

The usual three choices when it comes to setting up a Irish company are as follows;
• Sole Traders 
• Business Partnerships 
• Limited Company 
There are also other structures which can be considered;
• Irish Fund
• Irish Trusts 

The Limited company is the more popular choice as this offers limited liability and the other two choices do not. Sole Traders and Business Partnerships are also liable to income tax whereas a Limited Company pays corporation tax and only pays income tax if a salary is paid.

A Limited company can also be used for several purposes such as an Irish Holding Company, Irish Royalty Company or an Irish Agency Company. These have various advantages. Chesterfield are on hand to give expert structural advice prior to the incorporating of your offshore company in order that you may use your company to its full advantage.

Irish Intellectual Property

Ireland is fast becoming an attractive location for Intellectual Property and measures have been taken to ensure that Ireland has the legislative framework in place to accommodate this growth as well as attractive tax incentives. – for more information regarding Irish Intellectual Property please click here

Residency in the Ireland

Residence and domicile are taken into account for a number of taxes including income tax, deposit interest retention tax, gift tax, inheritance tax and capital gains tax. You are resident for tax purposes if you spend 183 days or more in Ireland. – for more information regarding Residency in Ireland please click here

Ireland do have some incentives to encourage non-EEA persons to invest in Ireland in exchange for long term residency.

Chesterfield and Ireland

One of the locations that Chesterfield has a permanent establishment is in Ireland. We have an office in the capital, Dublin. Our staff there are expert at all matters pertaining to Irish entities and operate contract umbrella schemes and are able to assist on all aspects of invoicing, VAT and double taxation treatment .

Chesterfield can help you every step of the way from initial structuring including Irish Company tax structuring and Irish Company Asset Protection. To Incorporating an Irish Offshore Company, Opening a Bank Account, Providing Irish Corporate Services including dealing with the Irish Companies Registration Office and any Irish VAT Registration

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