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Ireland Routes to Market

So you've decided to expand a business in Ireland and researched your market. Now it's time to decide how you will register and expand a business in Ireland. What is the best, most viable option for your company, your products, and yourself? Which is the path of least resistance?

Any company must be registered through the Companies Registration Office. The business must register a name, which costs 40 euro on paper or 20 euro electronically. The business must also provide a Memorandum of Association. The company owner must swear before a Commissioner for Oaths, which costs 10 euro and takes one day. The business must also register with the Revenue Commissioners for corporation tax, social security and VAT

Here are your typical options when expanding a business into Ireland:

Limited Partnership
A limited partnership is where a minimum of two persons and a maximum of 20 set up a business (certain financial partnerships are permitted to have up to 50 members). The partnership must elect a General Partner, who is personally liable to any losses the business may make. The other partners liability is limited to the amount they invest in the business. Registration of a limited partnership costs 2.50 euro.

Sole Proprietorship
The registration is similar to a limited partnership, but a self-employed person is able to trade as an individual. The sole proprietor will be personally liable for any potential losses the business may make.

Licensing

Licensing is the permission for someone else to use your intellectual property rights: either a patent, trademark, trade secret, or copyright. Different types of license include:

Non-Exclusive License - A non-exclusive license implies that your intellectual property rights can be awarded to more than one licensee.

Exclusive License - A little more complex because, although the license may not be exclusive to one licensee, it may be exclusive to a geographic location, a certain product, or limited area of use. For instance, you may grant a licensee exclusive use of the rights in France, yet grant another licensee its use in Germany.

Patent License - The allowance of another party to use your patented product, design or process.

Trademark License - Trademark licensing means permission is awarded to a licensee to sell a product or service. However, the licensor retains more control in order to ensure that quality is maintained. Quality control is in place to uphold the image of the brand / product / service / licensor, and therefore sustain customer confidence and satisfaction.

Franchising In Ireland

Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.

The benefits of franchising your business in Ireland include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.
Disadvantages of franchising a business in Ireland: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.

In Ireland there are 270 different franchises in operation employing in excess of 25,000 people in the sector. Brands such as O2, Subway and Dominoes are businesses that have used franchises as a route to the market. Although there is no specific law regarding franchising, laws on competition, brand name rights, employment and commercial leasing apply to franchises.

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