Company registration in the Republic of Ireland vs. company start-up in Liechtenstein: registering a private company can often be a complex task, especially when trying to find the way forward which results in the most cost effective outcome for one's business.
Depending on the unique set of goal's possessed by an individual business, it may for example, be more favourable to register a limited company within the Republic of Ireland; and by that same token, based on its individual needs, another business may benefit more by incorporating a company in Liechtenstein.
In some cases it may not be clear which country or state provides the more business-friendly environment, and in such cases it is important to analyse the pros and cons of each of the options available in order to calculate which will be best aligned with the interests of the business owner.
The native language of the region: when deciding on which region to formulate one's company, the native language spoken is often a key determinant. In Ireland, English is effectively the number one language used and therefore any business transactions will be done in this language. Such a detail cannot be overlooked as possible complications which may arise in the future can be difficult to resolve if there exists a language barrier.
The official language of the Principality of Liechtenstein is German, and a dialect of German is spoken widely. English is also widely spoken, and is used in many commercial transactions, however, the potential for misunderstandings or complications to occur may still exist.
The corporate tax rates: the government of Ireland was able to obtain the approval of the EU for a 12.5% tax rate on corporate income in January of 2003. This tax rate is available for companies whose profits are below 63,486.90 Euros, and for companies whose total trading income is less than 317,434.51. The corporate tax in Liechtenstein also stands at 12.5%. However, in Liechtenstein there is no cap on earnings in order to qualify for this low rate of tax.
Added to this, there is no surtax in Liechtenstein, meaning that companies in this region cannot be double taxed - another added advantage. Ireland on the other hand has the advantage of a potential three year tax exempt period available for certain trades, for example carpentry, electronics and medicine.
Rules and restrictions for registering companies: although corporate directors are prohibited, to register a company in Liechtenstein only one director and one shareholder are required. In the Republic of Ireland, however, a minimum of two company directors who are over the age of 18 are needed, and in addition, one of these directors must be a permanent resident of EU in order to register a company. However, in Ireland company registration is subject to VAT at a rate of 23%, and every company that has sales which exceed 55,000 Euros, must apply for VAT.
Meanwhile in Liechtenstein, company registration can be equally as restrictive, as to form an Anstalt company, between 30,000 and 50,000 Swiss Francs are required in capital. The costs to register a private company in Liechtenstein, including the provision of a registered office address, a nominee secretary (which does not include the provision of a nominee director, and nominee shareholder, costs for opening a bank account, share capital investments, etc.,) is about from £7,000 to £20,000 (including the provision of a nominee director, and further services). Plus, as the business owner, you should always check the price for the company maintenance per year.