Foreign investors who want to open a financial company in Ireland should know that the Irish market is one of the most developed. As such, it is advisable to set up such a business, because it provides one of the most reliable legislative and taxation systems in Europe. Foreign businessmen who are interested in obtaining a financial license in Ireland can receive an in-depth presentation on the subject from our company formation specialists.
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Setting up a financial company in Ireland
Compared to other jurisdictions in Europe, Ireland provides for the following types of companies that can be used to perform financial activities:
- public or joint-stock companies;
- designated activity companies (DAC).
They can be used to carry out from banking and insurance activities (traditional operations) to modern ones (e-payment, crypto-related undertakings). For each of them, special licenses must also be obtained.
If you want to set up a company in Ireland and operate in the financial sector, you can rely on our local agents for support with the registration. They can even handle the procedure on your behalf if you are a foreign investor.
Activities related to various financial licenses in Ireland
The financial sector is one of the most complex industries in Ireland as there are numerous activities that can be completed. Moreover, for some operations specific licenses must be obtained.
Here is a short list of the activities and licenses that must be obtained when creating an Irish financial company:
- banking and credit institutions for which a banking license is required;
- insurance and reinsurance companies for which dedicated licenses must also be obtained;
- e-payment service providers or electronic money institutions for which e-payment licenses must be obtained;
- virtual asset service providers (VASPs) which also require special licenses, namely crypto business permits;
- brokerage companies, capital market service providers, retail intermediaries, and debt management companies which are also covered by special licensing procedures;
- other financial services providers for which special requirements are in place.
Our Irish company formation consultants can help you apply for the designated financial license in accordance with the Central Bank Law.
Special requirements to apply for a financial license in Ireland
All financial companies in Ireland must comply with certain requirements before filing for any license. Among them:
- having a local place of business in Ireland;
- a 3-year business plan may also be required for certain activities;
- anti-money laundering, know-your-client, and security system policies must also be drafted;
- information about the key officers (directors, auditor) must also be provided;
- in addition, specialized staff must also have a good reputation.
Banks in Ireland
Foreign investors who want to open a company in Ireland in the financial sector can establish a financial institution, which represents any type of business activity related to finance and financial transactions. Some of the most common financial companies offer loans or deposits to individuals or legal entities or are set up in the investment market.
Commercial banks offer a set of financial services to both natural persons and companies; they can provide loans or accept deposits and provide financial security to their customers. Credit institutions in Ireland are regulated by the Irish Central Bank, which has the right to supervise the activity in this field in order to provide a stable financial market.
Another type of financial institution is the investment bank, which acts as an intermediary between various entities (usually, between businesses and local governments); investment banks are not available for the general population, as it is the case of commercial banks; our Irish company formation agents can provide you with further information on this matter.
Insurance companies in Ireland
Insurance companies provide financial services available to a large population that is interested in the management of their assets. Insurance companies rely on a very specific statistical model in order to protect themselves from possible liabilities.
Licenses for financial companies in Ireland
Financial companies operating in the field of insurance activities are required to obtain authorization from the Irish Central Bank, which is the main statutory body in this sense. The Central Bank will issue licenses for non-life insurance, life insurance, and reinsurance services.
In order to obtain a license from the Central Bank, the applicant has to submit an application at the institution and provide documentation as prescribed by the legislation in this domain. The bank will offer feedback on the application, stating if the company meets all the required criteria.
As a general rule, the bank will provide an “authorization in principle” to the applicant while it analyses the company’s application.
The formal authorization is issued only after the company meets all the legal and financial requirements.
Ireland, home to some of the best-known financial institutions in the world
Here are some interesting facts about Ireland from a financial industry point of view:
- 20 of the largest 25 financial institutions in the world are based in Ireland;
- 17 banks of the largest banks in the world are also located in Ireland;
- 11 of the most 15 important insurance companies worldwide call Ireland their home.
If you need further information on the financial license in Ireland, please contact our team of Irish company formation representatives for assistance.