UK Residents Incorporating Irish Company

Myself and a friend are about to incorpotare a company in the UK. I have been told that I should consider incorpoarting in Ireland instead.

The business is simply a fee earning business, introducing various business people to eachother in return for fees. We could easily have annual profits in excess of £300,000, taking us into the UK higher rate of corporation tax.

We are both currently tax resident in the UK and are both already higher rate tax payers However my wife is from Dublin and we are considering moving back within the next 5 years.

Is there really any benefits to us incorpating the company in Ireland? Is it possible for us to do so? If so, what would it involve?

Thanks for any help

I wonder why it was suggested that you incorporate in Ireland - was this to avail of the lower Corporation Tax rates?

You would need to get specific advice about this - I would not be familiar with all of the rules. However, the following come to mind:

If the directors of an Irish company are resident in the UK, this could make the company a dual resident of both Ireland and the UK and liable to UK Corporation tax as well as Irish Corporation Tax with Double taxation issues.

If the management and control of the company is in the UK, it would be construed that the Compaby has a branch in the UK.

This is quite a complex issue. If you really want to look at operating a Ltd company in Ireland I suggest that you get good advice and structure the company correctly. This could be an expensive exercise, and only worth doing if you are looking at saving large amounts of tax

You will need at least one Irish resident director or you will need to get a bond in place in order to incorporate in Ireland.