Doing business

Ireland

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Private Company Limited by Shares (Ltd) One share per shareholder	Shareholders cannot exceed 99 Limited to capital suscribed
Public Company Limited by Shares (PLC) Minimum allotted share capital, EUR 38,092; 25% of shares allotted, together with all premiums, must be paid up.	Minimum of 7 shareholders Limited to capital suscribed

Business setup procedures

Setting up a company	Ireland	OECD
Procedures (number)	4.0	5.6
Time (days)	13.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Ireland.
Trade Register
The competent organization: The Irish Companies Registration Office.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	-20,030	25,960	26,330
FDI stock (millions USD)	168,331.6	247,446.2	247,096.8
Performance Index*, ranking on 141 economies	141	11	-
Potential Index**, ranking on 141 economies	20	-	-
Number of Greenfield investments***	183	176	-
FDI inwards (in % of GFCF****)	-34.8	7.1	-
FDI stock (in % of GDP)	61.9	85.1	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Ireland

Strong points

Ireland's strong points are:
- A strong and thick industrial and tertiary fabric;
- The lowest corporation tax rate in Europe;
- A young and skilled workforce;
- A competitive economy; and
- Developed infrastructures.

Weak points

Ireland's weak points are:
- A limited domestic market;
- Growing labor costs.

Government measures to motivate or restrict FDI

For years, the Irish Government actively promoted foreign direct investment (FDI). Ireland provided an attractive taxation framework to foreign investors, by having one of the lowest taxation rates in the European Union. This strategy has fueled a robust economic growth since the late 1990s.
More recently, the Government has focused on Ireland’s international competitiveness by encouraging companies with foreign investments to increase their research and development (R&D) activities and to provide goods and services with higher added value. Nevertheless, the crisis has considerably impacted the country's appeal in terms of FDI. In effect, investors fear long term vulnerability of the Irish economy and a worsening of the unemployment level.

Several state organizations promote investment inflow:
- The Industrial Development Authority of Ireland (IDA);
- Enterprise Ireland;
- Udaras na Gaeltachta.

Bilateral investment conventions signed by Ireland

More informations on www.bilaterals.org

Procedures relative to foreign investment

Freedom of establishment: Guaranteed.
Acquisition of holdings: Authorized, except for some sectors of activity.
Obligation to declare: Please consult the Industrial Development Agency of Ireland (IDA) website.
Competent organization for the declaration: IDA
Requests for specific authorizations: Potential investors are also required to examine the environmental impact of the proposed project and to meet with Irish Environmental Protection Agency (EPA) officials.

Finding assistance for further information

Investment aid agency: Arthur Cox (corporate and business law, expertise in mergers, acquisitions and corporate finance).
KPMG
Other useful resources: Industrial Development Agency of Ireland
Department of Enterprise, Trade and Investment, Northern Ireland