European Rollout

IRCO is a subsidiary of a US privately owned company, US Inc.

US Inc. was established over ten years ago and the company is engaged in both the manufacture and distribution of its products. The products are sold to practitioners within the product field.

US Inc. made a decision to increase its market share and establish a European business base, which it will use as a platform for European sales and hence IRCO was established to cater for all European business.

A number of factors influenced US Inc's decision as to the jurisdiction in which the European entity would be based and the critical aspects were:

• Corporate tax rate
• Part of European Union
• Single Currency

How Irish Managed Companies (IMC) assists

IMC worked with US Inc. and assisted IRCO in the establishment of its business base in Ireland over one year ago. As part of this set-up process we assisted in the following:

• Company Formation
• Registering the company for relevant taxes
• Opening Bank accounts and assisting with anti money laundering controls.

IRCO imports its products from US Inc. The product is imported into Ireland and all logistics with regard to warehousing, customs and excise, and onward distribution of the product is outsourced to a third party warehousing facility. IMC sourced the most appropriate warehousing solution for IRCO and was involved in the negotiation of the service level agreement between IRCO and the warehousing facility.

There is a Management Services Agreement between IRCO and IMC.

The services which we provide are as follows:

• provide Company Director to participate on the board of IRCO. The Corporate director is involved in the management and control of the company.
• deal with all day to day aspects of IRCO’s business e.g.
- receiving orders and forwarding same to warehouse.
- issuance of invoices.
- receipt of funds and any other aspects that arise.
- payment of expenses.
- maintaining of bank accounts.
- prepare and submit VAT forms and P30’s.

• deal with all aspects of financial reporting, liaising with warehouse on inventory aspects etc., and submission of audit file to the company auditors in respect of year end position.
• provide Company Secretary for IRCO, to administer all company secretarial filings, etc.
• provide Registered and Commercial Office address for IRCO.
• domain name registered on IRCO’s behalf – specific telephone line allocated to client and answered in clients name accordingly.

IRCO also has a marketing manager employed whose responsibility is to establish and develop a European strategy with regard to the market penetration and sales growth of IRCO's products throughout Europe.

In summary, IMC provided IRCO with:

• access to Financial Accounting, Administration and Company Secretarial skills whilst also availing of the economies of scale associated with same.
• a working Irish office at an annual cost of circa one-third less than a stand-alone office solution.
• marketing person focussed on sales side and all other aspects of the business were administered by the IMC team.
• the benefit of having a senior Irish person partake on the Board of Directors.

European Rollout on an Incubation basis

Alongside our long-term on-going service we also provide a quick set-up incubation service for clients who wish to establish an operation in Ireland but wish to manage this operation in the medium to long-term themselves. The reasons for the use of our incubation service differ, ranging from companies 'testing the water' to those with a group policy of not outsourcing beyond the short term. We are happy to work with the individual client's particular requirements. The following is a typical scenario.

How Irish Managed Companies (IMC) assists

ExpandCO. contacted us to avail of our incubation services. A decision was taken at board level to concentrate their in-house resources on the running of the existing business and to outsource certain activities to IMC at the initial set-up stage. We provided ExpandCO. with the following services:

• incorporation of the Irish Company
• provision of temporary business and registered addresses
• provision of a temporary Irish Resident Director to partake on Board of Directors of the new entity
• submission of all relevant filings to the Companies Registrations Office
• set-up bank accounts and complied with all Irish and E.U. anti-money laundering requirements
• registered the company for taxes in Ireland, ie corporation tax, value added tax etc
• prepared Monthly Management Accounts for the duration of the incubation period

ExpandCo wished to employ their own team in Ireland. We assisted them in the sourcing of suitable office premises, IT infrastructure and services. We also assisted with the transfer of overseas staff members.

During the incubation period we managed the overall administration and accounting until the company had employed the appropriate personnel. A seamless change-over was then carried out.

The process lasted only a few months, during which we continually up-dated and liaised with the relevant personnel. The client is now in a stand alone position with a substantial business in Ireland in its own premises and with its own employees.

The list of services we provide is non-exhaustive and we endeavour through our 14 years experience in this business to tailor our services to our clients' needs.

Conclusion

The above scenario has been very successful for companies wishing to locate in Ireland and to co-ordinate and centralise their sales and marketing functions in Ireland in order to capitalise on the low corporation tax rate of 12.5%. They can do this by utilising our resources which allows them to concentrate on their core business and not get overwhelmed by the task of locating in a foreign jurisdiction.