This article is for international entrepreneurs and business owners from outside the EEA who are looking to establish a company presence in Ireland .
Why Ireland Is Attracting Global Entrepreneurs Ireland has become an exceptionally popular destination for international entrepreneurs seeking to establish a European presence.
As a member of the European Union, Ireland serves as the perfect gateway into the European market, offering access to over 440 million consumers.
Ireland's business-friendly environment is characterised by low bureaucracy, transparent regulations, and efficient governmental processes. Additionally, as an English-speaking nation, Ireland offers international business owners the significant advantage of being able to understand and follow local rules and legislation without language barriers.
The VAT Challenge for Non-EEA Businesses One of the primary considerations for businesses operating in Europe is Value Added Tax (VAT) compliance . Under EU regulations, companies selling to European customers must charge VAT on their products or services, even if the company is based outside the European Economic Area (EEA). It is a huge headache for all companies, EEA based or not.
This requirement creates complex tax obligations for non-EEA businesses, including:
Registration for VAT in each EU country where sales exceed certain thresholds Compliance with different VAT rates across multiple jurisdictions Regular VAT reporting and payments to various tax authorities Establishing an Irish company can significantly simplify these processes by providing a single EU base for VAT registration and compliance.
This can reduce administrative burden, streamline operations, and potentially offer tax efficiencies for businesses targeting European customers.
Company Formation and the ID Number Requirement While setting up an Irish company is relatively straightforward , there is one crucial requirement: all directors and shareholders (if they have over 25%) of an Irish company must have an Irish identification number. This is essential for tax compliance , company registration, and regulatory purposes.
Most Irish citizens and residents are issued a Personal Public Service (PPS) number, which serves as their national identification.
For non-Irish residents, particularly those from outside the EEA, obtaining a traditional PPS number would be overkill and time-consuming.
The IPN Solution: A Simpler Alternative Thankfully there is a much more accessible alternative to the PPS number - the Identified Person Number (IPN). This special identification number serves the same purpose for company registration but is significantly easier to obtain.
The IPN is acquired through what is known as the VIF (Vetting Information Form) process. This streamlined procedure is specifically designed for non-resident directors and shareholders, eliminating many of the hurdles associated with obtaining a full PPS number.
How the VIF Process Works The VIF process is remarkably simple compared to other identification procedures. It involves completing a straightforward form with personal information and providing basic documentation to verify identity. The application does not require physical presence in Ireland, making it ideal for international entrepreneurs.
The process typically includes:
Completion of the short Vetting Information Form through the Open Forest incorporation platform Submission of identification documents (typically a copy of your passport) We arrange a very quick call with one of our lawyers who will verify your ID and then watch you sign the VIF form Our lawyer will then counter-sign the form Open Forest will make the IPN application to the Companies Registration Office on your behalf Issuance of the IPN upon approval You can then continue with the incorporation process through Open Forest. Obtaining Your IPN During Incorporation If you need to obtain an IPN for yourself or any directors/shareholders of your new Irish company, you can do so seamlessly during our incorporation process. We have integrated the VIF application into our company formation service, creating a smooth, one-stop solution.
When you initiate the incorporation process with us, each stakeholder who requires an IPN will have the opportunity to apply as part of the same workflow. This integration eliminates the need for separate applications and ensures that all necessary identification requirements are fulfilled before the company registration is completed.
Our Service and Fee Structure We handle the entire VIF process on behalf of each applicant, ensuring all forms are correctly completed and submitted. For this service, we charge €150 + VAT (if applicable) per person requiring an IPN.
This fee is charged directly to the individual during the process since the IPN is personal to them and remains valid for life. However, we also offer the flexibility for the company to cover these costs if preferred. The IPN can be used for any future business activities in Ireland, making it a valuable long-term asset for international entrepreneurs.
Next Steps to Establish Your Irish Company To begin the process of obtaining IPNs for your company's stakeholders, simply start the incorporation process with us . Our integrated system will guide you through each step, identifying which individuals need IPNs and facilitating their applications.
We handle all the complexities, allowing you to focus on your business while we ensure full compliance with Irish identification requirements. Our team is available to answer any questions and provide guidance throughout the entire process.
Conclusion The VIF process represents a practical solution for non-EEA entrepreneurs looking to establish a business presence in Ireland. By simplifying the acquisition of necessary identification numbers, this streamlined procedure removes a potential barrier to entry into the European market.
If you have any questions about the VIF process, Irish company formation, or how to get started, please don't hesitate to reach out to our expert team. We're committed to helping international entrepreneurs successfully navigate the path to establishing their business in Ireland.
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