17 Feb The Irish Company – The ideal solution for Brexit
The United Kingdom are well on their way to exit the European Union. As the 29th of March looms large in the near distance, many UK companies find themselves in an unusual situation, and may feel that they are being forced to “choose an option” as part of their Brexit strategy.
There is of course a serious threat for many businesses that have operations across European borders. Whilst a free trade deal is a possibility between the UK and the European Union, there is the likelihood of serious customs, VAT and tariff implications to consider.
These challenges put the Republic of Ireland in a unique position because of its shared land border with the UK via Northern Ireland.
It is likely that Ireland’s existing trade relationship with the UK will lead to special provisions with the United Kingdom, which is currently the world’s 6th largest economy. British authorities have already announced their plans to remain part of the Common Transit Convention post Brexit.
This creates a key advantage for Irish businesses allowing exports to pass from Ireland through the UK to their final destination with reduced customs checks and controls.
Additionally, Ireland will maintain the EU Free Trade agreement allowing businesses to trade across European borders freely.
What are the benefits of forming an Irish company?
Cross-border trade is not the only benefit of registering a company in Ireland. Some of the main advantages include:
- Very favourable tax system for companies. Low corporate tax rate of 12.5%
- Ireland will be the only English-speaking country in the EU
- Euro currency, no exchange fees when dealing across the majority of EU countries
- Excellent Holding Company Regime
- One of the easiest and most efficient countries in the World to do business
- No Withholding Tax (‘WHT’) on dividends from Irish Holding Company to EU/tax treaty countries
- Reduced rate of corporate tax for R&D/intangibles
Ireland is the ideal country for foreign direct investment and an attractive market for a business aiming to establish an EU presence.
The Formation options
Irish Subsidiary Company – 51% or more of this company’s shares are owned by the existing UK or overseas company
Irish Branch Company – This company does not issue shares and is viewed as an extension of the parent company
Irish Holding Company – This is a parent company that typically exists to hold shares of various subsidiary companies
Stand Alone Irish Company – This would entail registering a company in Ireland and transferring all assets of the existing overseas company
Contact the staff at Huriya Private today to learn more about the various options available to your business as part of your Brexit strategy.
We have many years of experience in company formations, company secretarial and corporate services.
We can also assist with other essential services for your business including setting up a Corporate Bank Account, Corporate Tax, and VAT Registrations.