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In the countdown to BREXIT Ireland is a hugely exciting country in which to form a company
CFI's latest Brexit Breakfast Briefing highlights that since BREXIT became a reality last June 297 companies which have one or more UK based directors have been in have been incorporated in the Rep. of Ireland - a trend which is likely to continue.
These new companies encompass a wide range of industrial activities ranging from Aircraft leasing to Internet companies to finance companies. They also include professional service firms, of which three are accountancy firms, two are tax consultants and one is a law firm. No less than 18 of these companies have chosen to register as the new form 'Designated Activity Company,' which means that have a very specific purpose in forming a company in Ireland.
A quick glance down the names of these post BREXIT Irish incorporated companies shows a number of companies with a European dimension in their registered name, such as, Murgitroyd (Europe) Limited, Insight Trans Logistics (Europe) Limited, Bristol Groundschool Europe Limited, It Governance Europe Limited, Lifestyle Holidays Limited and more. Mr Kavanagh confidently expects this trend to accelerate as the countdown to BREXIT continues.
"Ireland is a hugely exciting country in which to form a company in right now", say Kavanagh, who points out that two short years ago Ireland was ranked by Forbes as the best country in the world in which to do business. Amid decided corporate tax advantages plus an extensive network of over 50 Double Taxation Treaties, including one with the US, Ireland is now solidly positioned in the top ten most competitive economies in the world.
Add to this the newest consolidated company legislation in the world (Companies Act 2014), the hugely attractive low capitalisation costs, when compared with most EU jurisdictions, plus an increasingly good tele-communications and transport infrastructure, the word is out globally that Ireland was a very attractive place to form a company.
The more you looked into Ireland, and the deeper you dig for rock hard statistical information to support a decision to form a new company in Ireland, the more advantageous Ireland becomes.
You unearth such nuggets of information as Ireland's low level of corporate taxes with a universal rate of 12.5% on trading profits (0% until 2019 for most companies who employ local staff), and the simple fact that companies can be incorporated in Ireland for just 1euro share capital. Ireland is a 100% committed European Union and EEA Member.
And, as Séan Kavanagh points out, if this is not enough to entice even the most wariest 'Plain-English' speaking investors on the lookout for the maximum company expansion opportunities of the future, there is one word that puts the cherry on the cake for Ireland's development opportunities of the future. And this word is BREXIT!
The moment BREXIT happens Ireland will become the only fully English-speaking jurisdiction in the Eurozone.
Drawing attention to the recent Budget 2016, in which the Irish Minister for Finance announced the introduction of the Knowledge Development Box (KDB), which will be legislated for in the forthcoming Finance Bill, Mr Kavanagh emphasised that this KDB is aimed at strongly incentivising innovative activities in Ireland.
In itself it highlights the Irish Government's commitment to offering companies everywhere a "best in class" corporation tax regime directly linking the relief provided under the KDB to the proportion of qualifying R&D expenditure being carried on by the company in Ireland on that innovation.
The corporation tax rate for income qualifying for relief under the KDB was confirmed as 6.25% and the jury is still out as to what its impact will be for multinational groups who typically undertake research and development activities globally.
As a well established licensed registered Trust and Corporate Service Provider, Company Formations International Ltd is ideally positioned to assist and guide everyone about forming an EU company in Ireland. Sean Kavanagh may be contacted directly in CFI at Sean@formations.ie. Alternatively visit http://www.formations.ie
Séan Kavanagh, Managing Director,
Company Formations International Ltd