The Republic of Ireland
Ireland is a fully independent jurisdiction, a member of the European Union, an excellent jurisdiction for opening an office on the territory of the state in order to create a substance for the company. Onshore status, absence of the state in "black lists", low tax rate (12.5%) and the possibility of obtaining a certificate of residency, makes the company's registration in Ireland the optimal offer for international tax planning purposes.
It is allowed to conduct any business activity that is not prohibited by law. There are some exceptions subject to compulsory licensing among which insurance and reinsurance services, credit unions, investment funds, etc.
The company is registered in Ireland in accordance with the Companies Act.
There are the most popular organizational and legal forms:
- Private Company Limited by Shares, where it is possible to appoint 1 (one) or more directors, a company secretary (if the company appoints one director, it can not be simultaneously a secretary) and a shareholder (it is allowed foreign ownership).
- Designated Activity Company Limited by Shares, where should be at least 2 (two) directors and 1 (one) secretary (one of the directors can be simultaneously a secretary of the company), and 1 (one) or more shareholders.
Requirements for company registration in Ireland:
• The name of the company should be unique and different from all the others registered in Ireland, therefore a preliminary approval of the name by the registry is required;
• The company must have at least 1 (one) director (only a physical person/individual) who is resident in an EU member state or Switzerland and at least 1 (one) secretary;
• All Irish companies must have a local legal address to which the correspondence will be sent by the government bodies; a commercial address may be other than a registered address;
• Companies are required to submit annual financial statements during 9 (nine) months after the end of the fiscal year.
The minimum authorized capital is 1 euro (1 share), during the process of registration the registration fee is required to be paid. The minimum number of founders is 1 (one).
The founder of the company can be legal entities as well as individuals (physical persons).
The minimum number of beneficial owners is 1 (one).
Information about the shareholders, director and secretary is available to any person applying, so it is recommended to use a nominal service.
Information about the beneficial owner is not available to the public.
Features of tax planning in Ireland
Irish corporate law meets all EU requirements, but the tax regime of the state is considered one of the most favorable in Europe. Companies registered in Ireland pay income tax, which includes companies' income and profits from the sale of assets. Corporate tax is subject, with some exceptions, to all profit of the resident company and non-resident company that conducts business activity in Ireland through its branch or representative office. These companies are subject to profit tax from trading activity at a rate of 12.5%.
In order to obtain the Tax Residency Certificate the Irish company should meet the following conditions:
• The place of registration of the company's address must be in the territory of Ireland;
• Management and control of the company's business should be performed in the territory of Ireland: meetings of the Board of Directors, annual general meeting of shareholders; audit of the company's financial statements should be made by certified Irish auditors;
• The accounting books and company records, minutes of meetings, company seal and share register should be kept in Ireland;
• The corporate bank account should be opened in one of the banks of Ireland.
