Register an IT Company in Ireland
In the past few years, Ireland has become the second biggest exporter of IT products and services worldwide. The main factors behind the growth in technology businesses in Ireland are the skilled workforce and educated people as well as the low corporate tax.
Several global information technology firms have created regional headquarters within Ireland and this makes the country more attractive to investors from other countries. At the present, the IT sector generates over 50 billion euros of exports every calendar year into Ireland’s economy.
Ireland is among many of the most easily accessible and connected nations around the globe. Its location, proximity to Europe and Europe, the US along with the Middle East; and membership give entry to some of the most advanced markets around the globe.
In this guide, we will be explaining to you, the essential reason why to register an IT Company in Ireland.
Reason to Register an IT Company in Ireland.
Here are the few most essential reason, why to register an IT Company in Ireland. Let’s see what are they.
- 2nd Home of Big Tech Companies
Since IBM was founded in 1956, other major tech companies have been arriving slowly. The rapid growth in tech companies’ presence started when Google established its headquarters in 2003.
It later went on to set up its European headquarters in Dublin. Ireland has a large presence of the most prestigious tech companies around the globe like Microsoft, Dell, Intel, IBM, SAP, Facebook, LinkedIn, Twitter, HubSpot, and PayPal to only a few.
There are more than 1,000 tech firms in Ireland which range from giants of the world to start-ups in embryonic stages. This group is an active local tech scene. Certain Irish companies are expanding their operations beyond Irish borders, such as Stripe or Intercom.
While some companies might have traveled to Ireland to take advantage of the tax rate for corporations that is low, However, they quickly realized that there are many other advantages of being in Ireland than fiscal prudential.
- Educated & Skilled Workforce
It is commonly stated that Ireland has a youthful, highly skilled workforce. In reality, this is extremely true. It’s one of the reasons why to register an IT company in Ireland. Eventually, it has the smallest populace in Europe with one-third of the population below 25.
Around 1 million students are part-time in the education system & three-quarters are in secondary and primary school. At present 30% of students at third-level institutions are enrolled in engineering, science, technology, and mathematics (STEM).
The Global Competitiveness Report for 2016-2017, as well as IMD’s Competitiveness yearbook 2017, put Ireland among the top 10 countries globally in terms of the quality of its education system.
One of the main conclusions in both of the reports is that the educational system of Ireland meets the demands to ensure a strong economy through that there is a strong link between universities and college businesses.
A concerted effort is to ensure that students graduate with the appropriate qualifications to take advantage of the job opportunities available in the tech industry. It is therefore fair to say that Ireland has a skilled and young workforce & that’s why it is best to register an IT Company in Ireland.
- Entry and Ease of Doing Business in Europe
One major benefit to register an IT Company in Ireland is the fact that it is part of the European Union (EU). Eventually, this allows firms to reach more than 500 million potential customers.
Ireland became a part of the European Economic Community in 1973. The European Economic Community has grown to give more benefits to members. At the present, the EU provides two key advantages for its members:
- The open circulation of capital, goods, individuals, and services in the EU and
- The customs union is an external common tariff for every item that enters the market.
Any business that is incorporated within Ireland can benefit from the free-trade accord and the customs union among EU states. In the year 1969, the idea of a common euro currency to be used by the EU was first floated. It was finally realized in 1999.
It was first utilized as an accounting currency by all 11 EU members using euro-based valuations alongside their national currency. The euro was introduced in 2002 and was introduced as the national currency as the legal tender in the twelve member countries.
The Eurozone in which the currency is used has increased to 19 countries. The euro has made it much easier to trade within the eurozone since the price of items and services exchanged isn’t subject to the fluctuations of market volatility. That’s why it becomes more crucial to register an IT Company in Ireland.
- Research, Development & Innovation
Ireland has been identified as a nation that encourages research & development and creation by businesses.
There are many ways to accomplish this.
- Tax Credits
A tax credit of 25% is available to companies that carry out research & development-related activities. This includes investigations and research in the field of technology or science. The tax credit may be used in Ireland even when the work was conducted in a different country, but not claimed in that country.
The goal of the activity should be towards making a scientific or technological improvement and solving something that was once thought to be an unsolved issue.
Tax credits are calculated at 25% of the amount spent on the qualifying activity. It can then be used to pay off the corporate tax bill.
Intellectual Property Development Tax Incentives
In 2016, the Knowledge Development Box was built to help develop Intellectual Property assets. A tax rate of a very low percentage of 6.25% is applied to the profits generated by this kind of activity.
R&D activities carried out in Ireland that result in patentable inventions or copyrighted software is qualified to be taxed at this rate.
- Centres of Excellence
Certain sectors that are located in Ireland receive support from centers for innovation to push the limits of innovation. These centers are located throughout the country and include sectors like Bio-Engineering Information Communications Technology, Nanotechnology, and Marine Science.
Documents Required To Register an IT Company In Ireland
Here are a few lists of documents required to register an IT Company in Ireland.
- Form A1
- Memorandum of Association and Articles of Association
- Constitution of the Company
- Residence Address of the Director of the Company
- A letter or the status of the business
- ID Proof of the Director.
Process To Register an IT Company In Ireland
Here is the in-depth procedure register an IT Company in Ireland is as follows.
Registration – Three kinds of registration that can be used by applicants to process corporate registrations in Ireland. The following registrations are available:
- Ordinary Registration – Usually the timeframe for normal registration is 15 days. However, the timeframe for the timeframe is not specified.
- Fe Phrainn Registration – This kind of registration is completed within 10 days of applying.
- Online A1 Registration – This type of registration is referred to for its speedy tracking method related to registration. It typically takes up to 5 business or working days.
In the first place, the person applying must choose the method and manner of registration.
Reserve Company Name – This service permits applicants to secure their name as a business. The company’s name must be unique and not be in use by any other business. Names have to be reserved by the appropriate authority.
Submit Company Documents – Documents for the company must be provided to the CRO together with the fee for the application. Form A1 together with the company’s constitution must be provided. A private limited company with shares (LTD Company) has one document which is called the MOA.
The Articles of Association will contain the details related to the bye-laws and policies of the company. On Form A1, the business will need to provide documents relevant to the business that include its name, the address of the business, and any other information regarding the operations carried out by the business. A declaration is required to be filed by the firm.
The Grant of Certificate of Incorporation – When an authority believes that there aren’t any irregularities in the application, a Certificate of Registration will then be issued.
Ireland is not considered to be a tax haven, however, when properly structured, it can be extremely advantageous to prospective businesses and those who are looking to register an IT Company in Ireland.
If your tech company is planning to expand internationally, Odint Consultancy can help you to register an IT Company in Ireland & make your move to Ireland possible.
It is an official process to register the business. This procedure has to be in line with the regulations of corporate law. Form A1 must be sent to the regulatory authority.
A company name that is not reserved would not be protected following the rules of trademark law. A company name reserved for reservation will only allow the name to be owned by the company for a time that is longer than 28 days.
Usually, the time frame for incorporation of a firm in Ireland is contingent on the kind of service utilized for incorporation of a company in Ireland.
The business’s name must meet the requirements of businesses that are registered in Ireland. It must also be distinctive and not violate any trademark law.
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.