Ireland whose official name is The Republic of Ireland; is a sovereign state located in north-western Europe that adheres to the unitary parliamentary and political system. Worth noting is that over 200% of the country’s GDP is derived from the value of exports and imports. This explains why the country has invested in offering reliable and easy trading policies to both local and foreign investors alike. In light of this, most companies choose to set base in Ireland due to the region’s competitive corporate tax rates, comprehensive tax treaty network, modern infrastructure facilities and the availability of a highly educated and dynamic workforce. Other benefits of company formation in Ireland include;
Business policies that encourage trade and foreign investments in the region
Ireland was ranked number 9 on the 2017 Economic Freedom Index. The high ranking can be attributed to its consistent strong economic fundamentals, commitment to open-market policies that trigger trades and FDIs to work together to enhance the business environment. Such business policy approaches have been said to help the country during its economic recovery after the 2009 recession. Note that, foreign investments are not restricted in Ireland and can venture in most sectors of the economy.
Low corporate tax and tax exemptions
Ireland charges one of the lowest corporate tax rates in Europe. In addition, businesses are offered tax reliefs and tax exemptions. However, both locals and foreigners operating businesses in Ireland are required to report all their income reports with the relevant tax authorities.
Brexit will trigger financial businesses to set base in Ireland
Ireland is a small country whose at least 215 of its population relies on food and drinks exports to Europe that are facilitated by the free trade agreement in effect. In light of this, there are fears that once Brexit is complete, trade tariffs will be imposed and as a result, affect the country’s food and drink industry. Despite such possibilities, most UK based financial service companies are slowly setting up their businesses in the region. This is a sign that good things lie ahead for Ireland. May be Brexit will offer more economic and business growth opportunities.
Competitive business environment
Some of the key indicators of a competitive business environment include; current macroeconomic environment, market size, regional infrastructure, institutions setting base in the region, and development of financial markets. All these indicators should be geared towards enhancing the country’s economic performance globally. The region’s numerous trade tariffs protect the traders against double taxation and stringent trade policies.
Summary
Apart from the aforementioned, the benefits enjoyed by Irish company formations are many. Others include; 100% foreign company ownerships, no minimum share capital requirement, and a fast and simple business registration process among others. This explains why a wide range of multi-national businesses is setting base in Ireland. It’s the ideal business hub for companies and brands looking to tap into the EU market.
