Company formation in Ireland – corporation tax rate of 12.5% and effective tax rate of 2.2–4.5% on global profits
Ireland is among the member countries of the European Union and the Euro zone is the country most favorable to the incorporation of a company; companies in Ireland are easy to set up and manage, corporate taxation is very attractive . Setting up an International Company in Ireland is quick and easy.
General presentation of Ireland
The Irish economy is particularly dynamic, highly dependent on international trade and the Euro zone.
With the 2008 crisis, austerity programs were put in place by the Irish government with the effect of reducing wage and price inflation. They also target investment in infrastructure and the promotion of foreign investment.
There are several types of businesses for foreign investors
- Limited Liability Company (PrC)
- Public Limited Company (PLC)
- Limited Partnership
Corporate taxation in Ireland
Taxation is particularly favorable to the incorporation of an international company in Ireland. Corporate tax in Ireland is 12.5% on all operating income regardless of the sector of economic activity chosen.
Recently, in order to stimulate the Irish economy, the government has taken measures that there will be full relief on income and gains relating to the trade where total corporation tax liability in any of the first 3 accounting periods does not exceed €40,000.
Company formation in Ireland
A welcoming land for international subsidiaries
We can no longer count the large companies which set up their European subsidiary in Ireland.
It is no coincidence that large companies choose Ireland as their host country. The island brings together many favorable conditions for companies wishing to develop in the European market.
Among all these advantages, there is of course the particularly attractive taxation of companies in Ireland, which we come back to at the end of the article. In addition, Ireland is a country of the European Union and the Eurozone, which also offers many advantages.
Its economy is dynamic and in very good health. Ireland ranks in TOP 5 spot in the ranking of GDP per capita.
For entrepreneurs, know that the country is based on the British model with a very strong corporate culture and an environment conducive to business incorporation.
From an administrative, legal and tax point of view, all the conditions are met so that you can quickly and easily set up your company in Ireland.
Advantages of company formation in Ireland
For foreign investors considering setting up business in Ireland and existing organizations seeking a more tax efficient corporate base, the benefits of Irish company formation should be given serious consideration.
- No disclosure of Beneficial Ownership to authorities;
- No requirement of minimum capital to be paid up;
- No exchange controls;
- Benefit from low corporate tax rate, network of double tax treaties and other tax incentives;