Great Britain is one of the most important economic players. For that reason, all eyes are on Brexit - on December 31 this year, the UK finally and irrevocably leaves the EU, impacting trade relationships globally. That is why many business owners are looking for a suitable way out of this situation. Which solution is the smoothest for most businesses? Our data shows - most companies choose to incorporate in neighboring Ireland or the Netherlands.
Below, there are conclusive reasons why registering a business entity in one of these countries should be your obvious choice to deal with the aftermath of Brexit.
Benefits of incorporating in Ireland?
People starting a company in Ireland will continue to profit from the efficiency of selling both within and outside the European Union. Also, Irish businesses will have no problem with the smooth flow of skilled labor.
- Closeness to Great Britain
While the UK is likely to suffer after Brexit, it remains one of the world's leading economies and one of the world's most developed consumer markets, especially in the area of e-commerce. Set up your business in Ireland and you get all the benefits of EU membership while remaining in close proximity to the 4th largest market in the world. Besides, Ireland will be the only country with a land border with the UK.
- Excellent Business Reputation
Ireland is ranked the 8th best country to start a business in the world, according to the World Bank's 2018 Doing Business report. It has also been the fastest-growing country in Europe since 2014 and has attracted over 700 US companies to date, bringing in over $300 billion in investment over that period.
Ireland is also an extremely tax-friendly destination. The corporate tax rate of 12.5% is one of the lowest in Europe, 6.5% lower than the UK and 2.5% less than Germany. If your entire business is conducted outside Ireland, you are also eligible for a full tax deduction on this foreign income. If you do business in Ireland, the country has 73 double taxation treaties, which prevents you from taxing most of your foreign income twice. As a result, Ireland is ranked 4th in the world in paying tax policies.
Do you want to learn more about incorporation in Ireland with Clevver's support? Talk to our experts, or read more here.
The next most popular Brexit-proof destination? The Netherlands!
The Kingdom of the Netherlands obtains a leading position in the economic development of the EU. Running a business in the Netherlands is one of the most certain ways to overcome the negative effects of Brexit.
The Netherlands is at the forefront of economic development in the Eurozone. The country's authorities strive to attract foreign investment and specialists capable of introducing innovative technologies in various spheres of production. The procedure for starting a new business in the Netherlands is easier than in other EU countries. Especially now, in a time of uncertainty (Brexit with or without a deal), registering your company in Holland is the most painless way to maintain a presence in the EU.
There are many opportunities for registering and developing small businesses. Moreover, if your company’s activities have a positive impact on the Dutch economy, you might qualify for government assistance at the start-up stage.
Benefits of incorporating a company in the Netherlands?
- Membership of the EU, obviously
This provides lower costs due to the disappearance of border formalities and all kinds of specific national regulations, as well as the better functioning of the labor market, as companies can more easily attract suitable personnel from abroad.
- The high business prestige of the Netherlands internationally
The Dutch GDP per capita is one of the highest in the world. And in contrast to other high-ranking countries, the income distribution is rather even. This means that a large part of the population has quite some money to spend which enables successful business making.
- Business-enabling legislation
It's easy to set up a business. The Netherlands ranks number 27 on the Ease of Doing Business Index, and setting up a company can be done through a public notary in just a few days.
- The stable economic and political environment
This is mainly due to the very low level of unemployment and a boost from higher government spending.
- The local taxation system is clear and transparent
A solid combination of the corporation tax rates in the Netherlands and financial incentives make the country a reliable choice as a base for international operations. The Dutch Tax Authorities have a flexible and practical approach, with a proactive attitude.
To prevent you from paying income tax on the same income in several countries, you can obtain tax relief in the Netherlands in order to avoid double taxation. The double tax relief only applies to the income tax.
Do you want to learn more about incorporation in the Netherlands with Clevver's support? Talk to our experts, or read more here.
From the practical, logistical, and financial points of view, setting up a company in Ireland or the Netherlands is difficult to beat.
How can Clevver help you? We now offer 10% off on the assistance with the incorporation in Ireland and the Netherlands
Send an inquiry now with a promo code BREXIT
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