For the second year running, Ireland has been ranked as one of the world’s least complex countries for multinational enterprises to do business in according to TMF Group’s Global Benchmark Complexity Index 2014.
Argentina ranked as the most complex for the second year running
Ireland remained in the top three of the least complex places in the world to do business in, with a ranking of 79th out of 81 countries, with only Hong Kong (80th) and Jersey (81st) receiving higher rankings. Ireland was ranked 80th in TMF Group’s Global Benchmark Complexity Index in 2013.
The far-reaching annual study by TMF Group, a leading provider of global business and compliance services, has ranked 81 jurisdictions across Europe, the Middle East, Africa, Asia-Pacific and the Americas according to how complex they are to do business in from a regulatory and compliance perspective. The full report can be seen here www.bjfrht.com/complexityindex2014.
The ease of doing business in Ireland is set to improve in 2015 with the enactment of legislation early in the year that aims to reduce the complexity of legal entity management, including allowing companies to appoint only one director (previously two were needed), having no requirement to physically convene Annual General Meetings, and having a single constitutional document.
Furthermore, in addition to being one of the easiest places in the world to do business, Ireland has also successfully implemented a number of measures to attract even more overseas business. The introduction of the Knowledge Development Box (KDB), for example, will enhance Ireland’s onshore Intellectual Property regime and provide opportunities for international companies to maximise their IP operations in Ireland on an income basis. There has been a steady flow of US tech companies into Ireland over the past few years, resulting in high paying, high quality jobs. The KDB will help attract more of these companies to set up in Ireland, where they would pay an effective tax rate of just 6.25% on income stemming from IP, far lower than the current rate of 10% in the UK.
“Ireland’s common law framework, its stable political environment, strong legal framework and pro-business attitude combine to ensure that it is one of the world’s least complex places for doing business,” explained Ronan Reilly, Managing Director of TMF Group Ireland. “The enactment of the Companies Bill 2012 this year will significantly improve the company secretarial landscape in Ireland, further supporting Ireland’s low complexity ranking.”
Welcoming the report, Martin Shanahan, CEO of IDA Ireland, Ireland’s inward investment agency, said: “Time and again, overseas companies cite Ireland’s ‘ease of doing business’ as one of the most compelling factors in their decision to invest in Ireland. Ireland’s ranking as one of the least complex places to do business in the world confirms the country’s worldwide reputation as a pro-business, pro-investment location.”
Results summary:
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