• Gavin O'Brien

10 Reasons To Set Up An Irish Limited Company Post-Brexit

Updated: Sep 11


Whilst trade negotiations are ongoing UK businesses trading within the EU face considerable uncertainty about how Brexit will impact their trading with the EU.


One question we get asked a lot, is should I set-up a limited company in the EU after Brexit? the answer depends on your circumstances. The 10 reasons below outline the advantages of setting up a business in Ireland post-Brexit.


It is worth noting that the points below are based mainly on the rules used for non-EEA countries trading with the EU. These may be different from the agreement the UK and EU eventually reach. The agreement may make it easier for UK businesses to trade within the EU but also it may be more difficult depending on how trade negotiations proceed.


10 Reasons for incorporating an Irish limited company post Brexit:


1. Tax Advantages – you could benefit from the low Irish corporation tax rate of 12.5%. There are additional tax breaks that can reduce liability down to nil.


2. Trading with an EU based company can make it easier for your customers to do business with you. Some practical ways an Irish limited company will do this include:


a. Some customers will not currently be importing from outside the EU, in cases they will not have a valid EORI number for importing. By registering an EU based company you will be able to manage the importing for them and ensure a continued business line.


b. Setting up an EU based limited company will ensure that it remains subject to EU law, providing customers with reassurance.


c. Customers may want to pay you into an EU based bank account. It is easier to set one of these up with an EU based company.


3. This legal certainty will also provide reassurance to service providers and partners


4. There are VAT benefits to establishing an entity within the EU – for example, retaining benefits of Union MOSS and retaining access to EU VAT Refunds system


5. Operators in certain industries will be required by regulatory or legislative bodies to have representation in the EU. Some current examples include:


a. Haulage and road transport operators for example must have an effective and stable establishment in an EU Member State


b. Without going into lots of specifics, service providers may encounter difficulties trading across borders. Auditors, architects and other chartered professions may find they no longer have mutual recognition.


6. Businesses with cross border UK-EU commercial contracts may find it becomes very difficult and costly to enforce these contracts post-Brexit. The establishment of an EU entity to enter into contracts with EU businesses can save money and provide assurance for parties involved.


7. In addition, the establishment of an overseas limited company can help to mitigate and diversify trading risk.


8. Regulations around the transfer of personal data will no longer apply to the UK once it leaves the EU. This exposes UK businesses to no longer being able to receive personal data form EU businesses. Unless something is agreed this will bring many UK based companies to a standstill.


9. Incorporating a limited company in Ireland is cheap. We offer annual packages for setting up and administering an Irish limited company from £2,000 per annum.


10. The reasons above assume the UK will trade as a non-EEA country on current rules. Depending on how trade negotiations proceed and the nature of the future relationship, these may get worse. Setting up an Irish limited company is a cheap way to future proof your large elements of your trade from Brexit.


MJH Accountancy is a practice of Chartered Accountants with offices in the UK and Ireland. With an understanding of tax laws and business regulations in both jurisdictions, we are the perfect partner to help and guide your business through the coming changes that result from the UK departing the EU.


Call us or use the contact form below to find out more.

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"MJH provides us with a very personal yet professional service. They have been very helpful in advising us on tax efficient structures" Seamus Duggan, Lakefield Services

Palmers Green, London - +4420 8886 4564

Kilkenny, Ireland - +35356 776 5834​

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