After the United Kingdom (UK) decided to exit the European Union (in a movement known as Brexit), numerous businesses located in this country considered relocating to other jurisdictions. This was partly due to the tax consequences that they will face, if they’d still operate in the UK.
One of the main business destinations of such companies is Ireland, a country that is a member state of the European Union (EU) and one of the most friendly European destinations for business purposes. Our team of lawyers in Ireland can advise on the procedure of relocating a UK business and may offer advice on the main business incentives available for foreign investors.
Why relocate a business to Ireland?
Ireland offers an attractive market for any businessman searching for a competitive place to register a company. The country has a very stable economy, with numerous business prospects and one of the most educated workforces available at the level of EU. More importantly, foreign investors can benefit from a wide range of programs that are designed to attract foreign direct investments here. Apart from these reasons, Ireland offers the following:
- • one of the lowest corporate taxes at a European level, imposed at a rate of 12,5%;
- • patented products and intellectual property are imposed with a tax of only 6,25% on profits;
- • the operational costs of a company are much lower compared to UK (when comparing Dublin to London, the capital cities of the two countries);
- • keeping a strong connection with the former clients, due to the close geographical location of Ireland to UK.
The main things to consider when relocating a UK business to Ireland
At the moment, UK is still a member state of the EU and thus, English investors will not need to perform special procedures, as it would be the case of investors outside the European Economic Area (EEA); our team of Irish lawyers can offer in-depth information regarding this matter.
One of the main aspects related to relocation refers to the dissolution of the UK based company, which will then be followed by the re-registration of the business in Ireland. The registration procedure is not complicated, but the logistics behind relocation can pose several difficulties (relocating company’s assets, for example); it will also be necessary to rent or acquire property in this country and investors can contact our law firm in Ireland for in-depth assistance on the above mentioned aspects.