The Republic of Ireland is a country with a resident tax system with a corporate tax rate of active income of 12.5% (passive income of companies is taxed at a rate of 25%).
However, tax legislation allows companies that do not conduct domestic activities through the use of limited partnerships (Limited Partnerships) to reduce taxation to 0%.
Since the beginning of 2018, the rules for registering partnerships have been strengthened in Ireland, namely, an EU citizen must be the General Partner.
This type of company helps to solve the following problems:
Reduce the tax burden on company profits to 0. If the company does not operate in the UK, the source of the company’s income is not connected to the UK, then its income is not subject to income tax.
Provide high company reputation. Ireland is a highly respectable jurisdiction and is not on any blacklist.
Simplify the company escort procedure. If the Irish LP does not operate in the UK, the company's source of income is not connected with the UK, then this company is exempt from accounting, reporting and auditing.
There is also no obligation to contribute authorized capital.