As we’re sure most of you have seen in the news, it seems the government are urging businesses to set up in the EU after Brexit.
Confusion and worries aside, let’s talk about setting up in Ireland. Is this a good option for you? Let’s consider some points:
- Ireland (in comparison to the UK) is more efficient in terms of corporation tax rates. Irish corporation tax is 12.5%, much lower than most other EU countries
- The process to set up is slightly more complex and slower than in the UK. However, you have unrestricted access to the EU marketplace, which gives you more certainty during these times. Once incorporated, the running Irish subsidiary would be similar to that of an English company
- An Irish company must have a resident director – if you don’t have an individual resident in Ireland that you are comfortable being a director, it might not be possible to establish there
- If your subsidiary is based in Ireland and sells services into the UK, Irish VAT wouldn’t be chargeable, but it’s likely that UK. VAT will be charged
Ireland is a fantastic option for you to consider setting up a subsidiary in for EU access.