"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?> "; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

The attraction of Ireland as a European base of operations can be deduced from the fact that one-third of all manufacturing employment is accounted for by foreign subsidiaries in Ireland. The U.S. & Foreign Commercial Service in Dublin has prepared an & Investment Climate Statement & for American firms seeking to invest in the Republic of Ireland. The report covers all topics of interest to potential investors and reviews barriers, repatriation of funds, and ease of establishment of operations. Prospective investors should contact the Ireland desk officer for a copy of this report--(202) 377-5401.

Ireland is seeking ways to use a well-trained labour force with high productivity to meet competition from its larger industrialised neighbours and third-world producers. Attracting foreign capital and modern production techniques is considered an effective means of stimulating the expansion of industry and the creation of competitive new enterprises. Business operations may be assisted by a variety of loans or grants depending on the job creation potential, degree of local souring, and the export impact of the investment. The investments most sought after are in research and development, high technology operations, European-wide services such as banking and insurance, and manufacturing with a high value-added process.

The Industrial Development Authority (IDA) has been established as the key agency to promote industrial development in Ireland. It is an autonomous state agency which provides a one-stop source of information and advice on all aspects of setting up a new business.The IDA can provide U.S. firms with investment assistance from identifying available sites and utility costs to obtaining the necessary local permits and sources of supply. As a result, the administrative burden for the U.S. investor is reduced to a minimum and the usual lead time and costs to establish an operational facility is very short.

Investors interested in taking advantage of government incentives should provide a specific proposal and can obtain information from the IDA, which has several offices in the United States. The IDA also represents and works with two other regional organisations established by the government to promote investment in Ireland. The IDA has responsibility for facilitating foreign investment in all regions of the country while the Shannon Free Airport Development Company has authority for domestic development in the greater Shannon area, and Udaras Na Gaeltacha has responsibility for investment and development in the areas where Irish is the predominant language in the western areas of the country. Each administering agency performs a screening and approving function for projects which will require investment assistance for their region. Interested investors should contact these agencies through an IDA office.

Several factors make Ireland an attractive site for investment: it has a stable political and social environment, a high standard of living, and a well-trained and productive labour force. Also, English is spoken and its people are friendly to Americans; it has financial stability and a well-developed banking/financial community; it is close to affluent European markets; and the government is supportive of business. With the development of the Single Internal Market Program in 1992 and the changing competitive situation, Ireland takes on increased importance as a member of the European Community. The investor in Ireland will appreciate the friendly lifestyle and environmental quality. The Irish have displayed an open welcome to Americans as tourists, relatives, or business executives. The business and legal environment is generally familiar to American visitors. There is efficient and rapid access to the United Kingdom and the continent for goods and services. There are no restrictions on foreign ownership of firms nor any threat of nationalisation. American investors are provided national treatment in all respects, including grants and assistance. The government is stable and has a long-standing policy of attracting business. Irish Customs is efficient and shipments are cleared with a minimum of delay.
Back to Top

Investment Incentives
Investment incentives range from non-financial aspects to specific and detailed tax breaks. These incentives are provided on a case-by-case basis and should be discussed with the Irish IDA office. Financial incentives include a reduced tax rate of 10 percent on manufacturing and certain service industries, tax-free grants to assist in employee training, accelerated depreciation, low-cost facilities (industrial estates) that are immediately available for rent or sale, and export-risk guarantee programs. Funds may be easily repatriated and foreign executives receive favour able tax treatment.
Back to Top

U.S. Investment in Ireland
U.S. direct investment in Ireland at the end of 1989 was $6.24billion and accounted for nearly half of all foreign investment. Most U.S. investments are in the chemical, metalworking, and engineering industries and in other technologically advanced and export-oriented sectors. There are approximately 340 U.S. companies in Ireland which are primarily manufacturing for export to the European market.
Back to Top

Legislation Governing Investment
The establishment of a business enterprise in Ireland does not require specific government authorisation; a foreign investor has the same rights and obligations as an Irish firm. For certain business sectors, however, the government is empowered to screen applications for new investments. As in the United States, Irish municipal authorities have established various codes and regulations for the location and construction of industrial enterprises. Compliance with local zoning and construction regulations is mandatory. Ireland requires all firms to maintain complete business accounts and records, with simplified procedures permitted for small firms. Accounting books must be on the double entry principle. Annual accounts must be presented at the annual general meeting which must be held within 6 months of the end of the firm's fiscal year.The European Community has promulgated a number of business directives which have been implemented by Ireland in its national law. One directive applies to limited liability companies and specifies accounting procedures, audits, and annual report requirements.
Back to Top

Foreign Exchange Regulations
Capital and profits of American firms may be repatriated from Ireland with little restriction on currency exchange for business activities. Responsibility for exchange control is held by the central Bank with much of this activity delegated to the commercial banks authorised for this purpose. The currency is the Irish pound (Ir£) and is technicaly called the punt. Ireland participates with Belgium, Denmark, France, Germany, Italy, Luxembourg, and the Netherlands in the European Monetary System (EMS).

The EMS provides for stable exchange rates among the participants in order to promote a steady flow of trade and reduce speculation in exchange rates. Under the EMS agreement, Ireland maintains a spot exchange rate between the Irish pound and currencies of the other participants within a stated trading range (plus or minus 2.25 percent for most currencies) expressed in European Currency Units (ECUs). Rates for currencies not participating in the EMS, such as the U.S. dollar or British pound, are established on the market. (Check the financial pages of the daily newspaper for foreign exchange rates.)

The forward exchange market is regulated to permit coverage of import and export of goods and services. Forward exchange is permitted for a minimum of 21 days to a maximum of 12 months. Non-resident accounts are designated external accounts, so that amounts in excess of Ir£163,250,000 require approval by the Central Bank of Ireland, except for imports of goods or services into Ireland. Prior permission is required to pay for any imports which are to be delivered more that 9 months from order date. Exchange control forms must be used for import payments exceeding Ir£ 50,000. When exporting from Ireland, the Irish firm must obtain payment within 6 months of shipment if the value exceeds Ir£ 250. When payment is received in foreign currency, it must be offered to an authorised bank for conversion into Irish pounds. Exchange control approval is required for all transfers of capital to non-residents.
Back to Top

Entry and Repatriation of Capital
The Central Bank of Ireland (CBI) does screen and approve all foreign investment. Remittance of dividends and profits and the repatriation of capital must also have prior Central Bank approval but approval is mainly a formality. Royalty agreements between resident and non-resident companies must be approved by the central bank. These approvals are routinely granted and serve more asa monitoring function than as a method of capital control.
Back to Top

Foreign Ownership of Property
Irish laws are very liberal toward trade and industry. There are no general prohibitions against the acquisition of majority holdings by foreign interests in Irish companies or against foreign ownership of either business entities or real property. Moreover, there are no nationality requirements for directors or shareholders in Irish commercial entities.
Back to Top

Types of Business Organisations
Firms interested in starting a business in Ireland should make detailed inquiries on the current law and commercial requirements.The business form most widely employed, and of greatest interest to American executives, is the private limited company. Other forms of business organisation will be recognised by an American firm seeking to establish in Ireland.

Public Limited Company-This is the main form of incorporation for firms issuing stocks or bonds, having stockholders, and directors that manage the company. The company is incorporated under a Memorandum of Association (Articles of Incorporation), providing the name,share capital, and commercial objectives. The bylaws state the relationship between the company and the shareholders. Minimum share capital is IR163,30,000, of which at least 25 percent must be paid up. Shares must have a par value, usually IR163,1 00 or less, and there must be seven or more stockholders. Shares may be issued in several classes such as common or preferred.The company must have a minimum of two directors that manage the daily affairs of the firm and who are usually selected by the shareholders. Annual meetings are required with 21 days advance notice provided. Disclosure of financial statements and meeting statutory requirements for reporting are required.

Private Limited Company-The requirements for formation and reporting of private limited companies are generally the same as for the public limited companies. This form is the most popular type of commercial organisation in Ireland and is popular for the establishment of an Irish subsidiary of a foreign parent. There must be 2 to 50 shareholders, no debentures or shares being issued to the general public, and no minimum level of share capital.

Partnership-In Ireland, the partnership form tends to be used for professional practice, such as attorneys and accountants. Partnerships are normally formed by a Partnership Deed setting out the agreement and conditions of the partnership. A less common form is the limited partnership, which allows one or more general partners who manage the daily affairs of the business and one or more limited partners who provide a fixed capital investment with financial liability limited to the capital investment.

Joint Venture-There are no direct statutory regulations regulating joint ventures as such. The joint venture agreement should be carefully constructed to define the terms, rights, and responsibilities of each party.

Foreign Branch-All foreign incorporated companies establishing a branch in Ireland fall under the Companies Acts of 1963 and1986. These regulations require the filing of documents with the registrar of Companies. If the foreign branch is the equivalent of a public limited company if incorporated in Ireland, it must also file annual reports. A branch is not considered a separate entity from the parent company. It carries the legal status of the foreign parent and has disclosure and registration requirements.

Sole Proprietor-This is an unincorporated business organisation owned by one person who receives the profits and incurs the liabilities personally. If the business name differs from the owner's name, this information must be registered. Foreign investors may establish a sole proprietorship in Ireland.
Back to Top