While the uncertainty around Brexit is a concern for all business according to a recent survey by the IOD one in three UK firms plan for Brexit relocation, the Survey finds a surge of smaller companies activating plans to move operations abroad as Business leaders in the UK are becoming increasingly concerned over the possibility of a no-deal Brexit.
Nearly one in three British businesses are planning to relocate some of their operations abroad or have already shifted them to cope with a hard Brexit. Kinsale Accountancy firm Fitzgerald & Partners said they have seen a huge increase in UK firms setting up in Ireland as part of their contingency planning and are getting enquiries daily from the UK SME sector.
Most firms considering a move were looking to open offices inside the European Union with Ireland being an obvious choice.
Cormac Fitzgerald Managing Partner of CPA firm Fitzgerald & Partners said: “Change is a necessary and often a positive part of doing business, but the unavoidable disruption and increased trade barriers that no deal would bring are entirely unproductive.
We have established a new business innovation hub in Kinsale to cater for UK firms looking to set up a base in Cork and Kinsale is an obvious choice with it’s proximity to Cork Airport. We have got huge feedback from our recent Doing Business in Kinsale stakeholder project and have seen a flurry of new business and firms setting up here.
“I don’t think there will be a single business who is stopping or halting their no-deal planning,” Fitzgerald said, adding: “I fear they may even be accelerating it given the huge demand for Irish companies in recent weeks. Our team are flat out working with UK firms and their UK advisors to help them get ready for the Brexit deadline”
The success of Ireland as an investment location has been pushed by successive Irish governments, which contributed significantly to the development of business in the country. This approach has ensured a favourable tax environment for companies, (12.5% corporate tax rate), competitive operating costs, a productive and flexible workforce and a well-developed infrastructure with world-class support services. Access to the EU single market being the main driving factor in the decision making.
With the United Kingdom set the exit the European Union on the 29th of March 2019, many Companies find themselves in a predicament and may feel that they are being forced to choose a side as part of their Brexit strategy. With the Brexit date looming, a serious threat exists for certain business operations across European borders. Whilst a free trade deal is a possibility between the UK and the European Union, there is the likelihood of serious customs, VAT and tariff implications to consider.
Cross-border trade is not the only benefit of registering a company in Ireland.
Some of the main advantages include:
* Very favourable tax system for companies. Low corporate tax rate of 12.5%
* Ireland will be the only English-speaking country in the EU
* Euro currency, no exchange fees when dealing across the majority of EU countries
* Excellent Holding Company Regime
* One of the easiest and most efficient countries in the World to do business
* No Withholding Tax (‘WHT’) on dividends from Irish Holding Company to EU/tax treaty countries
* Reduced rate of corporate tax for R&D/intangibles