Irish Agency Company
Irish Agency Company






                                                                             
                                                            

 

Irish Agency Company | Low Tax Trading Vehicle


Overview

Ireland is one of the most profitable centres for investment in Europe.  

It provides:

Current legislation requires all Irish companies to exercise “Control and Management” from the jurisdiction. Such companies are used by Continental Europeans because apart from the low cost of registering an Irish limited company they are not nearly as expensive as registering a German gessellschaft mit beschrankter (GmbH) or a French Sarl company. Ireland has also one of the lowest rates of corporation tax at 12.5% in the EU and an extensive double taxation treaty network. Again, such trading companies cannot be discriminated against in Germany or France or other parts of the EU but to be accepted they must show "Control and Management" in IRELAND and NOT GERMANY or FRANCE. To do this the company must be registered for VAT and be really managed in Ireland by, for example, our in-house staff which includes Accountants and Company Secretaries. This service legally requires us to operate an Irish bank account and make quarterly VAT returns to the Government (Customs & Excise). For clients that wish to still use an Irish company but maximise their wealth extraction a hybrid arrangement is the use of an Irish company acting as an agent of an international principal company which fulfils the local “control and management” test but at the same time enables international activities abroad. One such entity is the Irish Agency Company, which can be tailored in such a manner that it meets it’s obligations in Ireland but offers non-domiciled clients significant international trading and tax planning opportunities.

Concept

All business and sales are conducted in the name of the Irish company. The customer enters into a contract with the Irish company, is invoiced by them and pays the invoices into the bank account of the Irish company. The Irish company is managed and controlled by the Directors and Shareholders of the company as is the bank account of the Irish company. It should be noted that the Irish company cannot trade within Ireland or with any Irish businesses.

The Irish company will pay tax on the profits which it makes on the fees retained in accordance with an agency  agreement. This will be at the normal Irish Corporation Tax rate which starts at 12.5%. Accounts must be filed both with the Irish Revenue Commissioners (Irish tax authority) and with the Irish Companies Registration Office (Irish public record of companies). VAT registration for an Irish agency company is available where appropriate.  This structure is ideal for use as a European trading entity where intra EU activities require a VAT registered company. 


Key Facts about an Irish Agency Company:


Accounts: Annual accounts must be filed which may need to be audited. In its statutory and tax accounts the Irish Company will only acknowledge the commission it received through this arrangement, it does not need to recognize the turnover and profit of the principal company. The amount of commission received by the Irish Company may vary between 5% to 10% depending on the volume and business activity.


Taxation: The Irish Company pays Irish Corporation Tax on its commission although all allowable expenses incurred in carrying out its business will be deducted first. The ultimate benefit of this type of structure relies on the fact there is no Irish source income.


VAT Registration: If the company's turnover exceeds €75,000 in a 12 month period the company must register for VAT (Value Added Tax). We can handle all VAT registration formalities, and also complete and file all VAT returns with the Irish Revenue Authorities.