For years, Ireland has been a key territory for companies, startups and entrepreneurs. The reality shows how the economic, commercial and technological ecosystem of the country has been transformed over the years to house, nowadays, the European headquarters of well-known companies like Google, Apple or Facebook, among other hundreds, turning the island at a key point in the European business network.
In other European countries there are not so many facilities for companies or for those professionals who want to start their own business or launch an interesting idea, because they often run into obstacles and burdensome taxes that, especially at the beginning, are not easy to face.
Whatever the situation of the entrepreneur is -employed, unemployed, self-employed, foreign, etc.-, we must always keep in mind that in Ireland the economy and the creation of business are stimulated, especially small businesses, and that is why there are institutions such as Enterprise Ireland or Local Enterprise that, through their programs and initiatives, guide, support and help entrepreneurs to succeed.
Advantages of doing business in Ireland
In addition to what we have already said, we may consider it interesting to start a business or open a new commercial headquarters in Ireland, for the following issues:
- Ireland is strategically located between Europe, the United Kingdom and the United States, and has good air and sea connections.
- The country is one of the European territories that have experienced the greatest growth in recent years, as well as one of the best prospects. Ireland currently occupies the 32nd place by volume of GDP, the 6th place in the GDP per capita ranking (among 196 countries) and the 23rd place (out of 190) in relation to the country’s ease of doing business (Doing Business ranking).
- Companies and entrepreneurs have a high degree of support and facilities from the state.
- When companies invoice below 37,999 euros, VAT is not necessary to be declared, the corporate tax is 12.5% and the costs that companies entail for each worker are less than 11%.
- It is the epicenter of technological, pharmaceutical and agri-food companies, among others, that export to countries around the world, starting with the United States.
- Self-employed professionals do not pay a fee to perform their work.
How to start a business in Ireland?
Once we have the idea and have drawn up a good business plan, in which we have specified our objectives in the short, medium and long term, the strategies that we will use and the actions that we will carry out to achieve both, between other important issues, we must think under what denomination we will found the company.
In Ireland, a business can be established primarily as a single member company, as an unlimited company or as a limited company. Of course, it is essential to keep in mind that, when registering a limited company, it is mandatory that one of its directors or legal representatives is an Irish resident.
The type of business must be decided according to the needs and circumstances of both the entrepreneur and the company, as well as the level of risk that is going to be acquired. All the information about business structures can be found in the Companies Registration Office (CRO).
When the previous point has been decided and the business (name, statutes, address, owners / associates, occupation, etc.) has been registered in the CRO –click here if you want to know the steps you must follow-, it is essential to have a stamp of the company and open a business bank account in Ireland to operate.
Next, the company must be registered in Revenue (Office of Revenue Commissioners), the national tax and customs agency, which will grant the company a reference number that must be used in its commercial transactions and when paying taxes. At the time of the Revenue registration, the company will also be automatically registered in everything related to social security (PRSI, Pay Related Social Insurance). The other taxes to be paid by the company will be those related to VAT and, if the company plans to hire employees, PAYE.
In addition to all of the above, although it is not mandatory, it will be convenient for the company to take out insurance in order to be covered for any type of problem. And, if the business requires a special permit, for example, when we use a part of our address for the business, it must also be taken into account to expose it to the corresponding local authority.
Are you considering embarking on a new business adventure in Ireland and don’t know where to start? If you need answers to your questions, at ISEA we can help you. Contact us and we will guide you.
Also stay tunned if you want to know how to start a business in Ireland when being self-employed, we will soon post an article about this!