Doing business in template



Doing business in Ireland

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Are you a member of a UK company wishing to export overseas?

Interested in entering or expanding your activity in

the Irish market? Then this guide is for you!

The main objective of this Doing Business Guide is to provide you with basic knowledge about Ireland; an overview of its economy, business culture, potential opportunities and an introduction to other relevant issues. Novice exporters, in particular will find it a useful starting point.

Further assistance is available from the UKTI team in Ireland. Full contact details are available at the end of this guide.

Content

Introduction 4

Preparing to Export to Ireland 7

How to do business in Ireland 8

Business Etiquette, Language and Culture 11

What are the challenges? 12

How to Invest in Ireland 13

Contacts 14

Resources/Useful Links 16

Introduction

Ireland sits to the west of the island of Great Britain, separated by the Irish Sea. The Republic of Ireland accounts for five sixths of the island (26 of the 32 counties), Northern Ireland, part of the United Kingdom covers the remainder of the island. The island’s population is approx 6.3million with 4.58million (first results from the 2011 census) living in the Republic of Ireland. As per the Constitution (1937), the Republic of Ireland is named ‘Ireland’ and will be referred to as such for the remainder of the document.

Opportunities in Ireland

In 2012 UK exports of goods to Ireland totalled £17.4bn, and UK imports from Ireland totalled £12.7bn (HMRC). Ireland is the UK’s 5th largest export market and the UK’s largest export market in food & drink with other sectors continuing to grow. In 2012 total trade in goods and services from the UK to Ireland was £27bn. With cultural similarities, close sea and air links, the same language and similar regulatory frameworks Ireland is an ideal market for UK companies to export to.

Strengths of the market

In brief these are:

• Open economy, used to imports

• English language

• Same time zone

• Low cost regular flights from all over the UK to international airports: Dublin, Cork, Shannon and Knock. Also UK flights to regional airports: Kerry and Waterford.

• Ideal starter or test export market

• Similar regulatory and legal framework

• Around three million British tourists visit Ireland every year.

• A sophisticated consumer market.

Trade between UK and Ireland

|Top 5 UK exports to Ireland in 2012 |£billion |

| |2012 |

|Food & Drink |3.2 |

|Petroleum, petroleum products & related materials |2.2 |

|Miscellaneous manufactured articles |1.2 |

|Clothing, fashion & footwear |1.2 |

|Gas, natural & manufactured |1.1 |

Source: HMRC (SITC2)

Economic Overview

GNP € 131,306 m (2012)

Annual Growth 0.5% GDP/0.1% GNP (2013 estimates from Central Bank of Ireland)

Inflation 0.7% (2013 average to August)

Government Debt (% GDP) 117.6% (At end 2012 from CSO)

Unemployment 13.3% (Sept 2013)

Major Industries Computer software, IT, food & drink, pharmaceuticals, tourism

Major trading partners The UK is Ireland's largest single trading partner, other key trading partners are the US, Germany and France.

Exchange rate £1 = €1.18(Oct 2013 from the European Central Bank)

The emergence of the ‘Celtic Tiger’ in the mid-1990s saw Irish GDP more than double, reversing the previous trends of high unemployment and mass emigration. A key driver of this was low corporate tax rates which attracted significant foreign direct investment, a stable relationship between employers and unions (Social Partnership) and a highly educated workforce. The EU Single Market also helped Ireland to move to a more open and free-market based economy.

Between 2003 and early 2007 the Irish economy continued to expand at a steady 3-6% per annum. The drivers of the expansion were primarily construction and consumer spending. Construction in particular experienced phenomenal growth in the Tiger years with house prices in parts of Dublin regularly seeing annual increases of around 25%. The influx of migrant workers from the EU accession states helped provide a ready workforce for the construction sector and increased demand for domestic housing. However, in 2008, with the onset of the financial crisis the Irish economy began to experience a slowdown. The near collapse of the property market put severe pressure on both the Irish banking system and the government finances. Ireland officially entered recession at the mid-2008 point. In November 2010, Ireland agreed to receive €85bn of financial support from the EU and IMF. The UK, Sweden and Denmark also extended bilateral loans.

Even before Ireland’s programme was approved, it had implemented a substantial amount of consolidation, totalling 9.6% of GDP over 2008-2010. This stabilised the deficit at around 10% of GDP in 2010, prior to the large increase due to banking sector interventions. Public debt rose rapidly from 25% of GDP in 2007 to 92.5% of GDP in 2010 and is forecast to peak at around 123% of GDP by the end of 2013.

Ireland entered Excessive Deficit Procedure in April 2009 with a target for reducing the deficit below 3% of GDP in 2013. This was extended to 2015 in December 2010 when the EU/IMF programme was approved, with a correction to the structural balance of at least 9.5% of GDP over 2011-15. Ireland passed a referendum on the Fiscal Stability Treaty on 31 May 2012, which will require it to continue reducing its budget deficit on a gradual basis following the conclusion of its current support programme.

Political Overview

Taoiseach Enda Kenny T.D (Fine Gael)

President Michael D. Higgins (since 11 November 2011)

The present government was formed in 2011 after the general election to Dáil Éireann on 25 February 2011. Fine Gael entered into discussions with the Labour Party which resulted in a joint programme for government.

Ireland is a committed member of the EU and has participated actively in its evolution since joining in 1973. It is also an active member of the United Nations. Close links are maintained with the USA, where there is a significant Irish American population.

Population and demography

Population - 4.58 million (Census 2011). Dublin is the capital city and has a population of 1.2 million.

During the 2011 census 84.2% of the population were Roman Catholic, 3% Church of Ireland and with a small percentage Muslim, other Christian religions and other religions. 7% of the population have no religion or no stated religion.

Getting here and advice about your stay

Getting here

By air

Most European cities are within one to three hours flight from Ireland. The main airports are located as follows:

• Dublin

• Shannon

• Cork

• Donegal - Regional Airport

• Kerry - International Airport

• Knock - Ireland West Airport, International

• Sligo - Regional Airport only

• Waterford - Regional Airport, including UK

Principle airlines flying to Ireland from the UK include Aer Lingus, Ryanair, Flybe and Air France. Most European and international airlines operate services to Dublin airport. There are also airports in Northern Ireland at Derry and Belfast.

How to get to & from the airport

A taxi from Dublin airport will cost around €30 to Dublin city centre. The journey will take up to 30 minutes. Express bus services include Aircoach and Airbus costing up to €15 return, with services running to the city centre every 10 minutes during the day.

By sea/road

There are ferry ports in Rosslare, Cork, Dublin and Dun Laoghaire, also in Northern Ireland at Larne and Belfast. Operators include: Stena Line, Fastnet Line, Seacat (operated by Isle of Man Steam Packet Co ltd), P&O Irish Sea, Norse Merchant and Irish Ferries.

Visas

EU residents do not require a visa to enter Ireland but are advised to travel with a valid passport.

Your stay

Irish tourism websites can help you plan your trip. and .

Preparing to Export to Ireland

According to the 2011 Index of Economic Freedom, Ireland is 3rd in the Europe region and the 11th freest economy in the world (the survey covers 10 factors: business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom trade surplus from corruption and labour freedom). The UK’s trade surplus in goods to Ireland is £4.31bn which is the 2nd largest.

Before you start

Ireland is in the Eurozone and is an English-speaking, close neighbour with similar laws and many cultural elements in common. Therefore, Ireland is ideal for first-time exporters and offers extensive opportunities for experienced exporters. However, you are strongly advised to do as much market research and planning as possible in the UK before entering the Irish market. We also advise visitors to the market and would be more than happy to meet you whilst here and indeed arrange preliminary meetings for you.

UKTI’s team in Dublin can provide a range of services to British-based companies wishing to grow their business in the Irish market. Our services include the provision of market information, validated lists of agents/potential partners, key market players or potential customers; establishing the interest of such contacts in working with the company; and arranging appointments. In addition, they can also organise events for you to meet contacts or promote a company and its products/services.

As a first step or as a follow on from our assisting you, you might consider attending or exhibiting at an Irish event or trade fair relevant to your business. The UKTI team in Dublin can supply you with details of key Irish trade fairs in your business sector. This would give you an idea of the market and your competitors and allow you to meet people operating in the market. It would also demonstrate how serious you are about your plans for exporting to Ireland. Contacts you make at such events may suggest other contacts or routes to pursue. If you get the opportunity, make the most of these contacts to gather as much market intelligence as you can.

How to do business in Ireland

Routes to market

Route to market options include:

• Agent/Commission Agent

• Importer/Distributor

• Direct Sales

• Partnership/ Joint Venture

Using agents or distributors is a common route to market for many companies. If you are looking at these routes, you should consider whether they act for competitors and what their terms and commission charges are likely to be. Ideally, you should know what you will be expecting of them in terms of volume of sales over a given period.

The following might give you an idea of the likely volume of business but much depends on the product. There are relatively few OEMs in Ireland and order volumes tend to be small. A ratio of 1 or 2 sales for a given period of time in Ireland would be equivalent to approximately 10 to 15 sales for the same period in the UK. This does not necessarily apply across the business spectrum.

• Agent or Commission Agent

The agent is your representative in the Irish market and will operate on a commission basis. The agent sells your product and forwards orders to you whereupon you deliver the products. You invoice the customer directly. Prices quoted to customers should include the agent’s commission charges. Typically, the commission charge is 10% but it can vary from 2.5% to 15%. You normally pay your agent after the customer has paid you. Remember that you will have to invoice each customer so getting paid is not straightforward.

• Importer and/or a Distributor

The main difference between this route and using an agent is that the importer/distributor actually buys the goods from you and sells them on at a price that includes a mark-up. The usual mark-up is approximately 33%.

• Direct Sales

In this case, you supply your customers directly from your facility. If you use this route, you should consider setting up a separate Irish website (e.g. with an ‘ie’ suffix) to promote and sell your products.

• Partnership/Joint Venture (JV)

There are a number of permutations and types of partnerships/ JVs and you should seek legal advice before entering into any agreements. A JV is sometimes a good option where your company has not got the capacity to fully meet the demands and/or requirements on your own. One major advantage is that a JV gives you a presence of some form in Ireland.

If you choose the JV route, you need to think carefully about the structure. Where the businesses are in different countries, it might be best to establish a JV company which provides wider and better control.

The partnership options are a Limited Liability Partnership (LLP) or a Standard Partnership. These are not common routes.

Another option is a Co-Operation Agreement. These are perhaps most suitable where each entity contributes separately to the same project, for example, acting as independent contractors. These agreements are sometimes used when, for example, tendering for construction projects.

The Commercial Agents Directive

If you use the Agent route, you should familiarize yourself with the Commercial Agents Directive. The EC (Commercial Agents) Directive, as implemented by the European Communities (Commercial Agents) Regulations 1993, seeks to protect the position of a commercial agent. You are strongly advised to take professional advice on the Irish legal system’s treatment of agency agreements especially in relation to a commercial agent’s compensation for damage on termination of the agency contract.

The Manufacturers’ Agents’ Association (MAA)

Although the MAA is based in the UK, it also covers Ireland and it has a representative here. The MAA is the only membership-owned Commercial Agents' organisation in the UK and Ireland themaa.co.uk .

Customs and Regulations

The Office of the Revenue Commissioners is responsible for tax matters in Ireland revenue.ie. The following information is for guidance only and you should always seek professional advice on tax and customs matters.

Most goods or services supplied in Ireland are subject to VAT as are goods imported into Ireland from outside the E.U. VAT is charged at a number of different rates:

• The standard rate is 23%

• There are reduced rates of 13.5%, 9%, 4.8% and 0%. These lower rates cover a mix of goods and services and cannot be easily categorised. As a guide, the 13.5% rate applies to a number of labour-intensive services, 9% to tourism goods & service, 4.8% to livestock and the 0% rate applies to many foods and medicines and to children’s clothes.

• A number of activities are exempt from VAT and normally apply to services supplied in the public interest, for example, health, childcare and education.

The Office of the Revenue Commissioners is also responsible for Customs matters in Ireland. Their website is revenue.ie. The Customs tab on the website takes you to the Customs area where you can find information relating to aspects such as imports and exports and various customs duties.

Getting your Goods to the Market

The main Irish ports are:

• Cork

• Dublin Port

• Drogheda (Co. Meath, East Coast North of Dublin)

• Dun Laoghaire (Co. Dublin, South of Dublin Port)

• Galway

• New Ross (Co. Wexford, East Coast South of Dublin)

• Rosslare (Co. Wexford, East Coast South of Dublin)

• Foynes (Co. Limerick, West Coast South of Galway)

• Waterford

The current annualised scale of freight RoRo and LoLo shipping capacity serving the island of Ireland stands at 4m trailer and container (FEU) units. In the Irish market 23 different operators serve a total of 70 different routes and provide nearly 350 port calls per week using nine Irish ports.

Responding to tenders

In Ireland tender notices on government and public sector procurement across Ireland are published at .ie.

Projects which are considered to be an opportunity for UK companies will be published on the UKTI portal under the “Business Opportunities” section. Companies can sign up to receive tailored alerts about these opportunities at .uk/ireland.

Standards and Technical Regulation

The National Standards Authority of Ireland (NSAI) is Ireland’s official standards body, nsai.ie. They are the national certification authority for CE Marking and provide a certification service to enable businesses to demonstrate that Irish goods and services conform to applicable standards in the following areas:

• Quality Management Schemes

• Product Certification

• Medical Devices

• Transport

The Irish Patents Office is responsible for granting Patents and registering Trade Marks and Designs and the administration and maintenance of industrial property rights including Intellectual Property, patentsoffice.ie.

The Food Safety Authority of Ireland (FSAI) is the organisation responsible for ensuring that food produced, distributed or marketed in Ireland meets the highest standards of food safety and hygiene reasonably available and to ensure that food complies with legal requirements, or where appropriate with recognised codes of good practice, fsai.ie. Most of the legislation is covered by European Union (EU) regulations. Food supplements marketed for the first time in Ireland must be notified to the FSAI.

The Department of Jobs, Enterprise and Innovation, djei.ie, contains information on product labelling. The FSAI website also sets out labelling requirements for food and drink products.

Environmental regulations

The Environmental Protection Agency (EPA) (epa.ie) is the government agency responsible for monitoring and licensing industrial activities. Irish environmental laws closely follow EU Directives. There are charges for disposing of batteries and electrical material and a levy is charged on the supply of plastic bags.

All producers that place packaging on the Irish market must segregate the packaging waste arising on their own premises into specified waste streams and have it collected by authorised operators for recycling. Producers who have an annual turnover in excess of €1 million and who place more than 25 tonnes of packaging on the Irish market, have additional responsibilities with regard to the recovery of packaging waste from their customers.

Communications

The Irish telecommunications market is fully de-regulated. Currently, there are approximately 15 telecommunications companies servicing the market.

There are six mobile operators in the Irish market and all of them are providing 3G and mobile broadband services. Broadband has moved from being provided at 20mb/s and 24mb/s to up to 150mb/s with fibre broadband in many urban areas. 4G was released by eircom in September 2013 with other networks to also roll out in the coming months.

Documents in electronic format and paper-based documents (softcopy and hardcopy) are considered to be the same under Irish law. Provision is made for voluntary accreditation and supervision for those who issue electronic signatures.

Business Etiquette, Language and Culture

The Irish business culture places great importance on face-to-face contact. Irish business people are generous with information and are particularly appreciative of foreign business people who take the time and effort to visit Ireland.

The Irish are shrewd negotiators; they often have a self deprecating sense of humour with a leaning towards irony. Communication is generally informal but manners are extremely important. In a survey 26% of business men said they would move their business elsewhere were they on the receiving end of bad manners, the top three bugbears were; bad language, interrupting meetings by taking phone calls and taking too much alcohol.

Meetings should commence with a period of small talk – this is when the rapport is built and is as crucial as later discussions. It is advisable to have some knowledge of recent national news or sports prior to the meeting.

What are the challenges?

As a member of the European Union, with a shared language and an age old trading partner of the UK, Ireland does not present major challenges to UK companies wishing to develop trade.

Getting Paid – Terms of Payment

There is legislation in place in Irish law to ensure timely payment. Please refer to the Department of Jobs, Enterprise and Innovation, djei/ie/, for detailed information on payment terms. From the 1st January 2013 the late payment interest rate is 7.75% per annum (based on the ECB rate of 0.5% plus the margin of 8%). That rate equates to a daily rate of 0.021%. Penalty interest due for late payments should be calculated on a daily basis. EU Directive 2011/7/EU on late payments was brought into effect in March 2013.

Payment methods vary – cheques are still widely used, although Direct Debit Mandates or BACS are becoming more prevalent. Standard Payment Terms are usually 30 days, however average payment days currently stand at 62 days.

Before trading with a new company it is possible to use credit management to provide a credit report which will provide an indication of a company’s payment habits and financial situation before you deal with them.

UK Export Finance is the UK’s export credit agency and provides a range of products and services to UK exporters see .uk for more information.

How to Invest in Ireland

Ireland’s inward investment promotion agency is IDA Ireland . The IDA offers a range of services and incentives, including funding and grants, to those considering foreign direct investment in Ireland, to both new and existing investors. The focus of the IDA is on securing investment in the areas of High End Manufacturing, Global Services and Research, Development and Innovation. The IDA continues to work with investors once in Ireland to encourage and assist in expanding and developing their businesses. In addition Connect Ireland is responsible for attracting and assisting SMEs in the Irish market.

In particular key sectors targeted include:

• Life Sciences (Pharmaceutical, Biopharmaceutical and Medical Technologies)

• Information Communications Technology (ICT)

• Engineering

• Professional Services

• Digital Media

• Consumer Brands

• International Services

• Clean Technology

• Convergence and Services Innovation.

According to Unctad figures – Ireland saw negative inflows of FDI for a number of years, however this has been positive since 2009 and the reported figure for 2012 is an inflow of $29.3bn and outflow of $19bn.

Major UK investors include: Boots, HSBC, Barclays, Tesco, Experian, Diageo, GlaxoSmithKline, Unilever , Scottish & Southern Energy, , Aviva, Standard Life and Marks & Spencers.

Contacts

If you have a specific export enquiry about the Irish market which is not answered by the information on this report, you may contact:

UK Trade & Investment Enquiry Service

Tel: +44 (0)20 7215 5000

Fax: +44 (0)141 228 3693

Email: enquiries@ukti..uk

You will be signposted to the appropriate section on our website, or transferred at local call rate directly to the British Embassy in Ireland.

UK Trade & Investment Ireland

British Embassy

29 Merrion Road

Ballsbridge

Dublin 4

Tel: 00353 1 205 3755

Rebecca Wardell (Head of Trade)

00353 1 205 3763

rebecca.wardell@.uk

Paul Caplis (Head of Investment)

00353 1 205 3762

paul.caplis@.uk

Pete McWilliams (Investment Advisor)

00353 1 205 3754

pete.mcwilliams@.uk

Vicki Caplin (Trade Advisor and Events Coordinator)

00353 1 205 3757

vicki.caplin@.uk

Gavin Davidson (Trade Advisor)

00353 1 205 3759

gavin.davidson@.uk

Conor Kenny (Trade Advisor)

00353 1 205 3759

conor.kenny@.uk

Other useful contacts

British Irish Chamber of Commerce

3rd Floor

Newmount House

22-24 Lower Mount Street

Dublin 2

Tel: 00353 1 400 43 22

Email: info@



Chambers Ireland

17 Merrion Square

Dublin 2

Tel: 00353 1 400 4300

Email: info@chambers.ie

chambers.ie

Cork Chamber of Commerce

Fitzgerald House

Summerhill North

Cork

Tel: 00353 21 450 9044

Email: info@corkchamber.ie

corkchamber.ie

Dublin Chamber of Commerce

7 Clare Street

Dublin 2

Tel: 00353 1 644 7200

Email: reception@dublinchamber.ie

dublinchamber.ie

Galway Chamber of Commerce

Commerce House

Merchant’s Road

Galway

Tel: 00353 91 563536

Email: info@



IDA Ireland

Wilton Park House

Wilton Place

Dublin 2

Tel: 00353 1 603 4000



Irish Business and Employers Confederation (IBEC)

Confederation House

84-86 Lower Baggot Street

Dublin 2

Tel: 00353 1 605 1500

ibec.ie

Irish Small and Medium Enterprises Association (ISME)

17 Kildare Street

Dublin 2

Tel: 00353 1 662 2755

isme.ie

Revenue Commissioners

Customs Division

Support Branch

Government Offices

Nenagh

Co Tipperary

Tel: 00353 67 63400

revenue.ie

VAT Refunds

River House

Charlotte’s Quay

Limerick

Registered persons

Tel: 00353 61 212700

Email: regvat@revenue.ie

Unregistered or foreign traders

Tel: 00353 61 212799

Email: unregvat@revenue.ie

revenue.ie

UK Trade & Investment can help you make the most of these opportunities and help you plan your approach to the market. You can find out more about the range of services available to UK companies trading internationally through your local International Trade Team.

We hope that you have found this guide useful. For further information, please contact your International Trade Adviser or one of the UKTI team in Ireland.

Resources/Useful Links

Country Information:

BBC Website:



FCO travel advice:



Culture and communications:

CILT – National Centre for Languages - Regional Language Network in your area:



Kwintessential culture guides:



Customs & Regulations:

SOLVIT



HM Revenue & Customs:

.uk

Export Control

Export Control Organisation:



Export Finance

UK Export Finance



Intellectual Property

Intellectual Property Office:

.uk

UK Trade Tariff



Standard and Technical Regulations:

British Standards Institution (BSI):

Trade Statistics:

National Statistics Information:



UK Trade Info:



Travel

FCO Travel:



NHS:



Travel health:



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Important Information -

Sanctions and Embargoes

Some countries maybe subject to export restrictions due to sanctions and embargoes placed on them by the UN or EU. Exporting companies are responsible for checking that their goods can be exported and that they are using the correct licences.

Further information is available on GOV.UK

The purpose of the Doing Business guides, prepared by UK Trade & Investment (UKTI) is to provide information to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.

FCO Travel Advice

The FCO website has travel advice to help you prepare for your visits overseas and to stay safe and secure while you are there.

For advice please visit the FCO Travel section

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To find out more about commissioning work, please contact your local UKTI office.

Produced by the UKTI Team in Ireland

Contact: Rebecca Wardell

Email: Rebecca.wardell@.uk

Last Updated: September 2013

©Crown Copyright 2013

You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit .uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives..uk. This publication is also available from our website at .uk or for more information please telephone +44 (0)20 7215 5000.

GOV.UK: International Trade

GOV.UK’s International Trade pages provide an overview of export basics including licensing, customs procedures, classifying and movement of goods, other regulatory information and export paperwork issues. It also introduces exporters to the UK Trade Tariff.

Essential reading for exporters!

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