The Emerald Isle has in recent years become the ideal country to do business. It is estimated that the expected amount will reach around 500 million people. This figure has made it the target of both national and international companies to enter Ireland. However, it is necessary to have the right advice for it to become a success.
Ireland is the only English-speaking country in the EU and it’s yet another reason why global companies focus on it. Big emporiums like Google or Pfizer have established themselves there for their solid profits. For example, its low taxes, its location and its suitable business environment. It is a country whose economy grew 1.4% in 2012, which thanks to its solidity has been strengthening.
Even with the current health crisis, it has remained stable and growing. It is a country with exports on the rise and with Foreign Direct Investment (FDI) also growing. However, is it so easy to do business in Ireland? Not at all. Or at least, not if local help focused on legal and accounting issues is lacking.
First processing when starting a business in Ireland
As always, bureaucracy can be an impediment to achieving this. It is necessary, in the first instance, that a company representative has been appointed. This person must swear before a notary public and will later present the required documentation. This will be done at the Commercial Registry Office (CRO), prior to acquiring the company stamp. Additionally, you will have to cover registration for corporate tax, social security (PAYE / PRSI), and VAT.
Building permits for companies
When planning to establish a business on the island, it is necessary to consider this aspect. Worldwide, Ireland is characterized by the difficulties it offers in terms of construction processes. The process takes more than four months and involves significant expenses. For example, one of the procedures to be covered is to have an access certificate for people with disabilities. And it may take about 60 days.
Other permits have to do with planning, fire safety. There is also the publication of notice in an authorized newspaper. All of this, without proper guidance, can discourage any business considering setting up there.
Continuing with the procedures, it takes just over 200 days to get an electrical connection. This is a figure that is double that of the OECD standard of 98. To take into account that a good part of the procedure is carried out through the Electricity Supply Board. The ESB (for its acronym in English), is the one in charge of everything. That is, it organizes the estimation, external connection, meter installation, and final connection.
Property registration for a business in Ireland
This necessary procedure takes about 40 days to complete, and must be done by complementing five procedures. Within the requirements that they demand, several controls must be completed. Some of them are with the Irish Bar Association, the Finance Commission and the Land Registry.
About Credit and Investor Protection in Ireland
On this point, Ireland makes things easier because of what was already mentioned at the beginning. It is a solid and stable country, highly favored for doing business. This generates confidence in investors and therefore obtaining credit is much easier.
Tax and audit
Ireland is a very clear country on this issue. Eight corporate taxes are paid annually, and that on average requires 80 company hours to complete. Something that takes more time on this issue are contributions to social security. And the corporate income tax (which has a flat rate of 13%) and VAT require about 30 hours.
Procedures to do business in other countries
It takes seven days on average to export and about 12 days for imports. For this, four documents must be prepared and the time that this will require must be anticipated. Regarding the fulfillment of contracts, 650 days are necessary, but it only involves 21 processes.
Resolution of insolvency in Ireland
This is another advantage that the Emerald Isle offers, since it is within the five best countries in this matter. This according to data from the World Bank and the IFC. As for the conclusion of the cases it requires much less than half a year. And relative to the recovery rate it is much higher than in other countries.
Family Values and Business in Ireland
Both issues go hand in hand in Irish companies. It is not uncommon for many of them to be family businesses run by their members. Values such as loyalty and commitment permeate them. Even a sense of humor is something appreciated to have a strong business relationship with these companies.
Finally, at ISEA (Ireland Spain Economic Association) you have our full support in all of the above. We are a solid association that will be a strong link between Spain and Ireland. We have existed since 1989 and we seek to promote greater trade and investment openness between both nations. Learn more about us on our website.