Registering business outside Ireland

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MrChill

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Hi.. Im soon setting up a company which will be selling health products online to Ireland and UK. Products will be manufactured abroad and stored/dispatched from distribution company based in Ireland. I will also supply Irish health stores from distribution company.
My question: Is it possible to register a company outside Ireland to avail of lower tax allowances?
Being registered outside Ireland would enable the company to invoice (health stores for example) vat free, freeing up their initial 21% vat outlay.

Would appreciate peoples thoughts/experience on this.

By the way I run another company and pay my taxes here. If I am to go with this new product I need to keep tax liabilities to a minium.

TIA
 
MrChill said:
Hi.. Im soon setting up a company which will be selling health products online to Ireland and UK. Products will be manufactured abroad and stored/dispatched from distribution company based in Ireland. I will also supply Irish health stores from distribution company.
My question: Is it possible to register a company outside Ireland to avail of lower tax allowances?
Being registered outside Ireland would enable the company to invoice (health stores for example) vat free, freeing up their initial 21% vat outlay.

Would appreciate peoples thoughts/experience on this.

By the way I run another company and pay my taxes here. If I am to go with this new product I need to keep tax liabilities to a minium.

TIA
Click to expand...

It's not as simple as you've outlined above. Generally, if the place of supply is in Ireland then the supply should be VATable in Ireland.

Company residence is an equally complex area.

You should seek professional advice.
 
Per the Double Taxation Agreement, A company with a Permanent establishment in the UK will still be resident in Ireland if its central management is based in Ireland (i.e. where board meetings occur).

So to base your company outside Ireland, you must have a Permanent Establishment there and hold your board meetings there.

The other company is irrelevant here, unless it controls the company i.e. owns the shares.

Personally, your mad residing your company outside Ireland as Ireland is very attractive location for companies.

Remember, you can have a branch in the other countries but tax them here from a corporation tax point of view.

VAT is a completely different story. They are specific rules for distance sales. Please check here: http://www.revenue.ie/en/tax/vat/leaflets/distance-sales-eu.html

The only way around this is to operate branches and each branch will have a VAT threshold in each country. However, all this will lead to more administration and accounts costs so you will need to weight up.

Get professional advice as this is a tricky area.
 
Re

Thanks for that.. I remember reading before of Irish companies setting up in NI/England using UK accountants business address for tax purposes.

Also, with the 3year exemption on corporation tax been passed for limited companies set up from 2009, would you suggest combining two seperate products under the company for the three years or would it be seen best to have two seperate companies?

Thanks again
 
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