Ireland

Main » Jurisdictions » Ireland

Ireland

GENERAL INFORMATION ABOUT JURISDICTION

 

The Ireland is West-European country located on the similarly-named island that was labelled as «Celtic Tiger» at the end of previous century. Such original title the country got due to the rapid GDP growth in the period within 1990–2008 years.

Economic achievements of the Ireland became real due the scope of factors: stable politic and economic relationships with USA and the United Kingdom, old-established membership in EU (since 1973), well-executed tax reforms, development of manufacturing industry and investment sphere, renovation of social policy etc.

The country created favorable climate enabling development of manufacturing industry, telecommunication, media–technology, medicine and pharmacy.

1. LAW

Activity and business registration in the Ireland are regulated by: Law on Companies (Companies Act) 1963 and Law on Companies (Companies Act) 1990, including amendments and sub legislative (statute law) acts adopted in years 1963–2012.

2. COMPANY REGISTRATION

Types of companies in the Ireland:

  • private limited liability company (Private Company Limited by Shares)
  • public limited liability company (Public Company Limited by Shares)
  • company limited by guarantee (Company Limited by Guarantee)
  • branch of foreign company (Branch of Overseas Company)
  • general partnership (General partnership)
  • limited liability partnership  (Limited partnership)
  • Investment limited liability partnership (Investment Limited partnership).

Requirements for private company registration:

  • minimum statutory capital is not fixed; when the particular funds (Authorized capital) is to be declared – there is no requirement for its deposition
  • only shares to bearer are used, prohibited for public listing
  • minimum quantity of directors – 2, at least 1 of which should be a resident  of Ireland or EU, otherwise insurance contribution shall be paid (1692 pounds per every 2 years). An individual or legal entity may act as the company director; nominal service is allowed
  • minimum quantity of shareholders – 1, no residency requirement, both individual and legal entity may be company’s shareholders, nominal service is allowed
  • secretary – not required
  • registered office shall be located on the territory of Ireland
  • information about directors and shareholders are opened for public access, information about beneficiary holder – may be hidden with the help of nominal service
  • annual financial report is obligatory
  • сases for company to pass audit are: when the company’s turnover exceeds Euro 7,3 million/ Euro 3,65 million/ quantity of employees exceeds 50 persons/ the company is a part of group of companies.

3. TAXATION

The lowest corporate tax rate on trading in Europe – 12,5%, which is applicable when the company’s part of business located in Ireland (e.g. concluded contract with the Irish company).

Tax rate for manufacture is 10% that is applicable in case when manufacture happens on the territory of Ireland, or in case of sales of goods manufactured by the Irish affiliated company.

General tax rate on dividends – 25%, privileged tax rate – 12,5% that is applicable in case of rule of the double tax avoidance agreement or in case of investment into the Irish company more than 75%.

Value added tax rate (VAT) – 23%.

4. CURRENCY CONTROL

Not applicable

5. DOUBLE TAX AVOIDANCE AGREEMENTS

The state concluded the double tax avoidance agreement with France. Further conclusion of such agreements stands on the agenda also with Spain and some other countries.