With the UK leaving the EU back in January 2021 we are receiving an ever-growing number of enquiries into replacement vehicles as to benefit from the trade deals in place in the EU. Whilst there seems to be plenty of choices for budding entrepreneurs, we are recommending Ireland as the go to choose for forming a Company to benefit from trade with the EU.
Spain, especially the Canary Islands also seems to be a suitable jurisdiction however the bureaucracy and ever lasting paperwork makes forming a Company or here extremely difficult and expensive. Bulgaria is also a top choice, along with favourites such as Malta, and Cyprus. The down sides to these countries are that clients may need to give a power of attorney to resident agents to complete the registration. Due to Covid-19 this is becoming essential but can be costly and time consuming. Company formation in Ireland, however, can be done remotely, saving time, costs and the management of the agent who is dealing with your company formation.
Ireland has an inshore corporate tax rate of just 12.5% meaning it has one of the lowest tax rates of this type in Europe. Compared to France whose corporate tax rate is 28% and a little on the expensive side to form Ireland comes out on top. Forbes magazine recently ranked Ireland as being one of top countries in the World to conduct your business through and the Country continues to be a world leader for many large multinational enterprises.
Operating a sleek new online formation service, the Irish registry has now streamlined its operations and formations can be done in as little as 48 hours. Shareholders and Directors can be non- EU resident, however there is a non-EU resident bond to consider which is payable upon incorporation. One way around this is to appoint an Irish or EU resident as Director of the Company thus saving this initial charge.
As with most onshore jurisdictions Irish companies come with plenty of banking options and offers a stable place in which to centralise your business. Just look at Google, who have their headquarters in the capital, Dublin.
Statutory filing of accounts is required and relevant submissions and reporting procedures in place so make sure you have a suitable accountant ready to work with you after you have formed your Company.
Our next blogs will be about other individual onshore and offshore jurisdictions and the benefits and potential risks associated with forming and basing your company there. As with all international company formations it is best to work with a reputable formation agent in which to set up your Company as each jurisdiction has its own unique way of doing things.