Company registration in the Republic of Ireland vs. company start-up in the UK: Ireland may not be seen as the business capital of the world and it has been hit hard by the recent recession. However, there are some key benefits on offer if you do decide to register a limited company in Ireland, which are probably less well known than the benefits of registering a private company in the UK.
The benefits of registering a company in Ireland mainly centre on tax advantages. Irish companies pay lower rates of corporation tax than English companies, by forming a company in Ireland you are able to take advantage of this very attractive tax rate. The Irish Government has frozen the tax rates on Irish companies at just 12.5% because you are investing in the country. In the UK companies are currently taxed on profits at a rate of 20% - 23%.
If you register an Irish company and the products and services you provide qualify, you could be exempt from paying tax for three years. It is always best to check if your products and services qualify before basing any company registration decisions on this information. However, it is a great incentive for companies offering products in a number of areas such as medical, carpentry and electronic equipment to bring their businesses to Ireland.
If you form a company in Ireland, you could benefit from a tax exemption on any international income. This is provided that the company doesn't make any money from Irish customers. Company registration in Ireland is the perfect set up for a holding company. In fact, many international companies, including companies from the UK, are choosing to operate all or part of their business from Ireland because of the huge financial advantages.
Whether you register the company in the UK or Ireland you will benefit from double taxation treaties designed to help you avoid double taxation where the same income is taxed in two countries. Both Ireland and England have well established agreements with a number of countries across the globe. Double taxation treaties include corporation tax, capital gains tax and income tax.
When registering a limited company in the UK or Ireland, you protect the interests of shareholders and directors. In both countries, forming a limited company means that the company is seen as a separate entity; shareholders and directors are not liable for the company's debts or obligations unless their personal conduct when running the company is called into question.
Registering a limited company in both the UK and Ireland means higher levels of credibility. You are more likely to be able to attract investment as a limited company, either through shareholders or business investment schemes.