Doing Business In Ireland: Finance
The availability of finance is often a critical factor when deciding where to locate a business. The Irish financial services sector has a long track record in catering for the needs of both domestic and multinational businesses operating here.
The Central Bank of Ireland lists more than 400 credit institutions that are authorised to carry on banking business in the state. These credit institutions include:
1) Domestic banks
2) EU member states’ credit institutions
3) Market-leading international banks
These banks provide the services and support typically required to conduct business both domestically and internationally, including:
a) Checking and clearing account services
b) Treasury and international services
c) Lending and providing a variety of financial
d) Capital markets activities
e) Invoice discounting/factoring
In addition, Ireland’s International Financial Services Centre (IFSC) houses many leading banks that specialise in financial services to the global financial sector. This is complemented by a network of specialist advisors, accountants, lawyers and regulatory professionals located across the country.
Ireland has a number of state and semi-state agencies that provide financial and business support for both indigenous and foreign enterprises. Support is delivered through a number of agencies:
1) IDA Ireland attracts and supports foreign investment in Ireland.
2) Enterprise Ireland develops and promotes indigenous businesses with international growth
3) County Enterprise Boards assist the development of micro-enterprises, with priority given to manufacturing and internationally traded services. The nature of the supports available varies significantly depending on the suitability/requirements of the indigenous/foreign business.
Typical supports include:
a) R&D grants/tax credits
b) Direct financial aid
c) Capital grants
d) Employments grants
e) Training and marketing support
f) Technical development incentives
Private equity finance
The private equity finance sector is varied and support depends on a company’s stage of development. Choices include:
1) Domestic and international venture capital funds
2) Business angel investors
3) High-net-worth individuals
The private equity finance sector in Ireland is growing. Since 2010 there has been a 21% increase in the number of companies that have raised private equity funding. The Irish government has also pledged €175 million in funding through the Seed and Venture Capital Scheme, which will be administered by Enterprise Ireland.
Irish Stock Exchange
The Irish Stock Exchange (ISE) is regulated by the Central Bank of Ireland and it has helped companies raise funds and enabled share trading for more than 200 years. Companies seeking an ISE listing are subject to the exchange’s listing rules and must fulfil its criteria before making a public offer.