Starting a Business in The UK vs Ireland: Which Is Better?

Even though Ireland and the UK are next to each other geographically, these two countries are very different places to run a business.

In 1922, the Republic of Ireland became its own free state, operating independently of the United Kingdom.

Currently, the United Kingdom is made up of England, Scotland, Wales and Northern Ireland – which is a different territory from the Irish Republic.

Because of this, Ireland has remained part of the EU post-Brexit, making it a totally different market to set up a business in. In fact, some of the world’s biggest tech companies, including Google, Apple, Microsoft and Meta have all opened offices in Ireland.

Why Are US Tech Companies Setting Up Shop In Ireland?

Like many governments around the world, the Irish Government started making the country more appealing to businesses.

Currently, it has one of Europe’s lowest corporate tax rates and an English speaking population, making it an appealing choice for Big Tech companies.

If you are a business debating between setting up shop in the UK or Ireland, here are a few things worth thinking about:

Trade

If you’re setting up a business in one of these economies, you probably want to understand the benefits (and limitations) of trade.

UK: Since Brexit, the UK operates as an entity outside of the EU, making it slightly harder to trade on the continent.

However, as a business hub, the UK has amazing trade ties with a variety of countries, making it an easy, albeit slightly more complex country to trade from.

Ireland: Ireland still exists within the EU Single Market, making it a good choice for companies wanting to attract EU customers.

It has also become a hotspot for tech companies due to its low corporate taxes and easy entry to the EU, making it a great option.

Setting Up A Business

UK: Setting up a business in the UK is relatively easy, costing around £50 to register with Companies House. From here, businesses can trade easily within the UK.

Ireland: Ireland also has an easy system for setting up a business, costing €40 for paper filing and €20 for electronic filing. Once registered, businesses can operate easily within the EU.

Taxes

UK: The UK’s corporate tax sits at 25%, which is one of the highest in Europe. Companies earning over £85,000 must also charge VAT at 20%.

Ireland: Ireland has one of the lowest corporate tax rates in Europe at 12.5%. This has made it an appealing option for big companies all over the world. VAT is charged at 23% for companies that have an income of over €40,000 for services or €80,000 for goods.

Workers

UK: The UK has a highly educated population, and is home to some of the best tech and business institutions in the world.

Ireland: Ireland does have a highly educated population, but also benefits from free movement, meaning tech workers all over Europe can come and work in the country.

Currency

UK: The UK operates in pounds, a currency which has held strong globally over many decades. The good thing about the pound is that its value is directly related to the UK alone, so is uninfluenced by other markets.

Ireland: Ireland operates in Euros, a currency which is highly influenced by big European markets like Germany, France and Italy. This means it can be slightly more unpredictable, but it can also be used more globally which is a benefit.

UK vs Ireland: Which Is Better For Your Business?

When weighing up starting a business in the UK or Ireland, it depends what you’re looking for. If you want an easy and accessible route into the EU, then Ireland might be the right choice.

However, if you want a country with good global trade ties and a strong currency, the UK might be a better option.

Either way, both of these countries come with incredible opportunities, perfect for any aspiring business.

Good luck!