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How to open an offshore company in Ireland?
Ireland is a relatively small state next to Great Britain (not to be confused with Northern Ireland, which is included in the latter). As a self-sufficient state, Ireland is part of the European Union and, like most other EU member states, does not have an international “offshore” label. Including, offshore zones for Ukraine, the list of which is approved by the Cabinet of Ministers, does not include this state. However, opening a company in Ireland has a number of advantages, which is why this country is unofficially a fairly popular offshore.
Features of registering a company in Ireland
An offshore company in the conventional sense cannot be registered in this country: every year, companies registered in Ireland must provide documentation that they operate only in the country, and their directors are Irish residents. Otherwise, the company will have to buy a package of state shares worth an impressive 20,000 pounds. Therefore, in order to register your organization here, you need to prove that it will work within the country. Non-resident companies can register in Ireland only their representative office or branch.
The most common and convenient form of business organization for doing business in a given country is a private company with limited liability, the so-called “Private company limitedby shares”. A company organized in this way ends with the words “Teoranta”, “Ltd” or “Limited”. Offshore companies with the following words in the name: “bank”, “society”, “international”, “holdings”, “insurance”, “group” are not allowed. Special permission is required to add such words to the company name.
Registering a private limited company in Ireland involves:
- any amount of authorized capital;
- from 1 to 50 shareholders;
- at least 2 directors (Kyiv can be the place of official residence of only one of them, the second one must certainly be a resident of Ireland);
- legal address within the borders of the country;
- bookkeeping and annual financial reporting.
An Irish company is required to pay the following taxes (offshore companies in the form of representative offices or branches are taxed only on the component of income that is related to activities in the country):
- Corporate tax of 12.5% for most activities. Transactions with land, gas, oil, minerals, income from the rental of real estate are subject to a 25 percent corporate tax. A firm receiving dividends from an overseas subsidiary may request an Irish tax reduction for the amount the subsidiary has already paid in another country.
- Capital gains tax of 33%, determined from the difference between the profit from the sale of any asset and related expenses. This tax is levied on the alienation of a number of types of real estate and land plots, as well as on the alienation of assets that are not directly related to trading activities.
Dividend tax of 12.5% or 25%. A lower rate is used if the company from which the dividends are received is registered:
- within the EU;
- in a country with which Ireland has a double tax treaty;
- in another country, despite the fact that the company's shares are recognized on stock exchanges.
- VAT ranging from 0 to 23% (depending on the type of goods or services). Offshore companies importing goods from non-EU countries pay VAT directly at the border. When importing products from EU member states, VAT can be paid during the tax period. Export of products from Ireland is subject to VAT at a rate of 0%.
Offshore Ireland can apply for a grant in the format of reimbursement of 25 percent of the company's expenses. The ability to receive such a grant depends on the value of the goods produced, the location of production and the number of jobs. Another nice nuance: an employee who has lived in Ireland for less than 183 days a year is not required to pay income tax.
The economic climate in this country today is considered one of the most favorable in the EU. Therefore, many promising companies that want to work in Europe seek to buy offshore companies in Ireland.