The most popular forms of doing business in Ireland are:
- sole trader, also known as self-employment
- civil law partnerships or partnerships
- limited liability company
People running their own business in Ireland emphasize at every chance they get how the Irish tax system is adapted to entrepreneurial people. One of the lowest CIT rates in Europe and total CIT exemption for new companies are by far the biggest lure for entrepreneurs in Ireland.
The basic corporate income tax rate on Green Island is 12.5 percent (such a rate is taxed on the company’s core business). While the 25% rate applies only to income from other operations of the company (and thus, e.g. from financial operations). A very low rate – 6.25 percent, also includes income from research and development conducted in Ireland and new companies. As long as they do not generate a profit exceeding EUR 1 million annually, can count on total exemption from CIT for the first 3 years (saving up to EUR 40,000 annually).