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Why Form A Company In Ireland?

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Why Form A Company In Ireland?

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Considerations: The new 2014 act in Ireland makes it easier for Directors to manage a company. It is the goal of the Irish Government to make Ireland the easiest place in the world to do business.

  • Ireland has a low 12.5% Corporation Tax rate and is a pro business environment.
  • Low Share Capital Requirement, as low as €100
  • There is Limited Liability on Shareholders. Shareholders only risk the share capital they invest.
  • Ireland is an English Speaking Jurisdiction, the only one in the Eurozone.
  • Ireland offers free access to over 500 Million consumers in Europe.
  • Ireland is ranked in the top 10 easiest places in the world to do business.
  • There are generous Research & Development tax credits.
  • A Company is a legal entity in itself. It is completely separate from the Officers and the people who run it. It is the company that legal action is taken against as a result of unpaid debts for example.
  • A limited company has greater ability to raise finance by the issue of shares.
  • The limited company name is protected.
  • The company is protected against sudden changes to Management structure.
  • Employees can acquire shares in the company.
  • Making changes to the company is relatively simple.

Taxation:

Directors pay income tax and the company pays corporation tax on company profits, and with current rates of tax company profits earned and retained in the business are assessed to corporation tax at lower rates than if income tax were payable on equivalent profits earned by an unincorporated business

  • Scope for greater company pension scheme to be secured through a limited company
  • Personal tax advantages can accrue for directors of a limited company

Corporation Tax Comparison Chart

LOCATION Corporation Tax %

Ireland 12.5

Lithuania 15

Romania 16

Hong Kong SAR 16.5

Singapore 17

Slovenia 17

Switzerland 17.92

Hungary 19

Poland 19

Croatia 20

Finland 20

Iceland 20

Jersey 20

Russia 20

Turkey 20

United Kingdom 20

Portugal 21

Slovakia 22

Sweden 22

Denmark 23.5

Austria 25

Netherlands 25

Uruguay 25

Greece 26

Canada 26.5

Norway 27

New Zealand 28

South Africa 28

Spain 28

Luxembourg 29.22

Germany 29.65

Australia 30

Italy 31.4

Japan 33.06

France 33.33

Belgium 33.99

United States 40

UAE 55

Maximising the tax benefits of a limited company

One of the main focus for small businesses will be the maximising benefits to minimise tax. This can be done by:

  • Ensuring that your company makes pension contributions (if cash flow allows)
  • Claim the maximum possible expenses allowable under legislation
  • Capital equipment used in your business is purchased and capital allowances claimed
  • Ensuring that benefits in kind (insurance, health care etc.) are paid out of the company

Find out more about doing business in Ireland here

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