Start a Business in Ireland with Clevver’s Help Remotely!

Psoted on: March 11, 2021 at 3:16 pm, in

Overview:

  • Ireland is a member of the European Union and the European Economic Area. The establishment of a company here allows trading easily in services and products throughout the European market.
  • Government policies of the country are designed to create a stable economic environment that encourages investment;
  • Under the laws of Ireland, the corporate tax is 12.5%; 
  • The Irish government has signed extensive double taxation agreements with 63 countries. These agreements cover direct taxes (income tax) and the capital gains tax.
  • Clevver provides comprehensive support for the company incorporation on a remote basis in Ireland. All the corresponding documentation on the business registration is available digitally.

Ireland has been one of the best countries for starting and growing a business for many years in a row. In spite of the global upheaval caused by the pandemic, the Irish economy remains at a high level thanks to the decisive actions of the country’s government. 

Many businessmen choose Ireland for their business projects, as the country is economically stable with a favorable environment for doing business and also allows companies to enter the global market while taking advantage of the effective taxation of the European jurisdiction.

Ireland is an independent country, which occupies a leading position in top world business rankings (ease of doing business, ease of business registration – 2016). If you are looking for a prestigious jurisdiction in Europe with minimal taxation and a good business reputation, then Ireland is definitely worth considering. For those who are ready to choose this jurisdiction as the business location, Clevver offers a service of professional assistance for the remote registration of an LTD company in Ireland. Our experts can also provide many additional to Irish company registration services on request. Visit our website to find out the details.

Taxation of Limited Companies (LTD) in Ireland

Businesses in Ireland are generally subject to a variety of taxes. Their levels are usually set in the national budget, which is published in December each year. Typically, limited companies are liable to the following types of taxes:

  • Corporation Tax is 12.5% for trading companies and 25% for non-trading ones. Non-trading companies are organizations deriving income from mining, profits from dividends, profits from trading activities from overseas sources, as well as profits that are not related to trading activities;
  • Capital Gains Tax is 33%;
  • VAT on sales (within Ireland) is 23%. There are compulsory and voluntary VAT registration procedures. Obligation to register for VAT arises if the annual turnover of the company in goods exceeds 75,000 Euros, and services — 37,500 Euros. In other cases, voluntary VAT registration is possible. Companies that do not sell any goods or services within Ireland are not required to register for VAT ID in Ireland.

10 Reasons to Incorporate in Ireland

  1. The government of the country pursues a policy aimed at creating a stable economic environment, which facilitates the inflow of foreign investments into the state; 
  2. Ireland is a prestigious jurisdiction for business and is not present on the “black” or “grey” offshore lists; 
  3. Presence of preferential taxation in the country, for example, the corporate tax is 12.5%, and for some businesses, it can be reduced to 0%; 
  4. Ireland is a member of the European Union and the European Economic Area. The European Economic Area allows the companies registered in Ireland to expand easily the sphere of rendering services all over the EU territory with access to the world market; 
  5. There are convenient and loyal banking and tax systems in the state; 
  6. The Republic of Ireland is the only English-speaking state that is a member of the European Monetary Area; 
  7. There are programs of state support and business financing in Ireland; 
  8. There is free access to the country from continental Europe and North America; 
  9. The government of Ireland provides grants for research and development; 
  10. There is an absence of currency control in the country.

Irish Company Formation

We provide our clients with the support for the business formation in Ireland (and many other countries) of the highest quality. Our company strives to do it as efficiently as possible and in compliance with existing standards of professional ethics.

Incorporate in Ireland with Clevver’s help to receive:

  • The assistance of the high-level professionals; 
  • Entirely remote process of cooperation with us; 
  • Digital access to the comprehensive package of documents on the company formation; 
  • Possibility to obtain many additional to business registration services (company secretary, tax registration, registered address in Dublin, and many more);
  • Consistent customer support and individual approach to each client.

Final Thoughts

Ireland is an independent Western European state, the center of the business interests of both large corporations and young entrepreneurs. Clevver is more than ready to assist with the registration of an LTD in this jurisdiction — a company with limited liability, which is by far one of the simplest, most accessible, and understandable forms of business ownership on the international market. 

If you are interested in starting a company in Ireland, you can contact our team for more information right now!


DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


Double Irish with a Dutch Sandwich — Legal Cuisine

Psoted on: December 17, 2020 at 11:36 am, in

It’s about time that we educate you about the most appetizing tax scheme known by the name Double Irish with a Dutch Sandwich. What does it do? It is associated with minimizing the tax burden when using intellectual property. This system is widely used by American corporations and is slightly less common among European companies, but it is still present there.

Why Do Companies Use “Double Irish with a Dutch Sandwich” Scheme?

So, to begin with, we should turn attention to the prerequisites for using this method of minimizing taxes. If we consider the United States, then income received from intellectual property (royalties) is subject to a very significant tax – 35%. At high turnovers, this interest rate is incredibly burdensome for companies. As a consequence, many firms use tax optimization. This should not be confused with tax evasion. Optimization is the reduction of the tax burden by applying legally acceptable mechanisms.

Famous companies such as Apple, Google, Facebook, Coca-Cola, and others appear among the notorious cases of the “double Irish with a Dutch sandwich” scheme. For example, Google allegedly underpaid about 1 billion Euros in taxes to the French budget for 2016, due to tax optimization.

“Double Irish with a Dutch Sandwich” Peculiarities

Now, let’s move on to the “tastiest” part, and consider the structure of such tax planning and how the above media giants managed to significantly save on tax payments.

This scheme is a kind of chain, through which intellectual property rights are transferred from one company to another. This chain uses two Irish companies and one company registered in the Kingdom of the Netherlands (hence the name “double Irish with a Dutch sandwich”).

Under Irish law, a company is considered a resident of the country from which it is directly managed. Thus, a company incorporated under Irish law with an office and a current director in another country will be considered a resident of the latter. The first Irish company (hereinafter we will call it I1) is geographically located in an offshore zone – in Bermuda or the Cayman Islands, in which dividends and royalties are not subject to income tax. The second Irish company (hereinafter I2) is already registered and located in Ireland, but at the same time, it is a 100% subsidiary of I1. The third company is registered in the Kingdom of the Netherlands (hereinafter – N).

The very scheme of interaction between companies is as follows: A company that owns the intellectual property (located in a high tax area, for example, the United States) transfers intellectual property rights to I1 through a licensing agreement, then I1 sublicense these rights to the company N. The Dutch company, in turn, also transfers sublicense agreement with the same rights to I2. It directly collects profits from the use of intellectual property rights and conducts real business (excluding US consumers). This is because Ireland does not tax funds that are transferred by its residents to some countries of the European Union, incl. Kingdom of the Netherlands. In this case, I2 must pay tax only on the part of the income received from royalties, which it retains with itself (at a rate of 12.5%). From the Netherlands, funds are transferred to I1 (also bypassing taxation), which is a tax resident of the offshore zone, in which it is exempted from paying taxes for royalties. As a result, money is concentrated in the offshore jurisdiction. The popularity of the described scheme is confirmed by media reports, according to which foreign companies carried about 13 trillion euros through the Kingdom of the Netherlands in 2012.

Final Thoughts

It is worth remembering the worldwide trend towards de-offshorization and the introduction of BEPS rules, which are aimed at eradicating such phenomena. This means that in the near future such ways of tax optimization will be closed and global corporations, together with their lawyers, will have to look for new options for tax planning or pay taxes in the form in which they are provided by law. Already in 2017, US authorities directed corporations to end the system. Ireland is pressured to close this loophole.

Our Offer to you

Clevver can assist with the establishment of a Dutch Sandwich for you on demand. Also, Clevver can support the company formation in other alternative European jurisdictions like Switzerland or Malta.

Get in touch with us at [email protected] for more information.

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


10 Reasons Why Move Your Business to Ireland or the Netherlands before Brexit Gets Finalized

Psoted on: December 1, 2020 at 5:10 pm, in

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.

Ireland

Benefits of incorporating in Ireland?

  • EU Membership

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.

  • Favorable Tax Climate

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.

  • No double taxation

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.

Clevver perks

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

Incorporation in the Netherlands

Incorporation in Ireland

or, email us at [email protected]

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.