Investing in Ireland: building bridges for Indian businesses in the EU

Ireland's position within the European Union, its business-friendly environment, skilled workforce and robust legal and regulatory framework, paired with India's rapidly expanding economy and vast talent pool, present an incredible opportunity for both nations for business expansion and cooperation. In this article we explore how Ireland can offer a 'golden bridge' for Indian businesses eyeing up expansion into the European market.

The deepening commercial ties between India and Ireland serve as an excellent example of two countries making use of one another's respective economic strengths to create mutually beneficial growth and opportunity. The key features of Ireland's offering to Indian business are the English language, its appealing business environment, membership of the European Union (EU), skilled workforce, attractive corporate tax rates, and supportive infrastructure for innovation and entrepreneurship. 

Our dedicated foreign direct investment (FDI) experts advise across the full range of FDI activities, including mergers and acquisitions (M&A), joint ventures, commercial contracts, real estate, intellectual property, GDPR compliance, employment and immigration advice. Ogier is well placed to assist the rising number of Indian companies seeking to establish a presence in Ireland. Ogier was named in India Business Law Journal's Deals of the Year 2023 for its role in Apax Partners' technology acquisition.

Ireland's position within the EU

Ireland has established itself as a highly attractive venue for foreign investment from Indian businesses looking for an avenue into the European market. With unfettered access to the single market flowing from its EU membership, and its skilled and English-speaking workforce, Ireland serves as an inviting entry point into the EU for such Indian businesses.

The key factors behind Ireland's appeal for Indian business looking to establish operations within the EU are as follows:

Business- friendly policies

Ireland's enterprise friendly reputation is grounded upon a low rate of corporation tax, supplemented by its vast network of double taxation treaties, and incentive schemes for research and development (R&D) activities. These factors significantly lower the costs associated with establishing and operating a base of operations within the EU for Indian companies.

Gateway to the EU market

Ireland serves as a convenient gateway for Indian firms to enter into the EU market. By establishing operations in Ireland, Indian businesses can access and trade on an unrestricted basis within the EU, which comprises 450 million consumers, reaping the benefits of the single market's free movement of goods, services, and capital.

Skilled English-speaking workforce

Ireland has a highly educated, English speaking, workforce and a long established and respected professional services ecosystem. This combination not only streamlines procedures for Indian businesses looking to establish a presence in Ireland, but also mitigates the cultural and linguistic challenges they might encounter elsewhere in Europe.

A strong legal framework and IP Protection

Ireland, like India, is a common law jurisdiction (one of two remaining within the EU). This fact, combined with Ireland's strong IP protections, offer Indian businesses confidence that their innovations, creations and products can be robustly protected, within a stable and predictable legal system. This protection has been of critical importance for companies (such as Microsoft and Google) operating within technological, pharmaceutical and other creative industries.

Successes of Indian based companies operating In Ireland

Several notable examples highlight the opportunities Ireland presents for Indian firms seeking to gain a foothold within the EU.

Infosys

This global information technology consulting firm established a technology and innovation hub in Ireland, making use the skilled local workforce to drive solutions within the fintech and healthcare industries across the EU.

Wockhardt

Wockhardt, a large Indian pharmaceutical and biotechnology company, has benefited significantly from Ireland's strong regulatory framework and skilled pharmaceutical workforce.

GC Global 

CG Global, an industrial and engineering solutions firm, benefits from Ireland's focus advanced manufacturing and engineering sectors, as well as from the country's skilled engineering talent pool.

Sun Pharma

As one of the world's leading pharmaceutical companies, Sun Pharma benefits from Ireland's previously mentioned IP protections and Ireland's position within the life sciences and R&D sectors in Europe.

Wipro

As another information technology company, Wipro capitalised upon Ireland's tech ecosystem and strategic location to access and cater to the broader European market.

The trend of Indian firms establishing a presence in Ireland is set to continue, due to India's growing medical research, pharmaceutical and frontier technology industries (for example. AI, cyber security and i-cloud messaging).

Overcoming challenges to entry 

Due partly to the EU standards and regulations, and partly to Ireland's own specific legal requirements, (which can both differ significantly from those of India), Indian companies may encounter challenges when seeking to establish a presence in Ireland. Additionally, and as with any international company setting up operations in Ireland, Indian firms must also adapt to Ireland's local business culture.

To successfully establish a presence in Ireland, Indian firms should dedicate both time and resources towards strategic planning and engagement with local resources and advisers in Ireland. Local Irish advisers can provide market insights, introduce potential partners and clients, and offer support in navigating Irish and European regulatory requirements.

Indian companies seeking to set up in Ireland should also make use of Ireland's supports for foreign investors, such those provided by Ireland's foreign direct investment agency (IDA Ireland), which specialises in assisting companies investing into Ireland on their establishment and growth here.

Conclusion

This opportunity for expansion and mutual success has been repeatedly illustrated by Indian firms in recent years, with Indian IT and pharmaceutical companies leading the way. Similar opportunities for expansion exist for India's exploding technology sector. However, Indian firms should be mindful of the EU and local law regulatory hurdles that exist when establishing a presence within Ireland.

How can Ogier help?

In order to achieve success and encounter fewer surprises, Indian firms should engage with local advisers and other local resources in preparation for any potential move to Ireland.

Ogier is uniquely positioned to advise on international investment structuring and complex cross-border transactions, drawing on multi-disciplinary legal expertise from our teams across the BVI, Cayman Islands, Dubai, Guernsey, Jersey, Hong Kong, London and Luxembourg.

From early-stage venture start-ups to multinational companies, our team in Ireland is perfectly placed to provide targeted expertise and multidisciplinary support to meet your commercial objectives. For any queries, please contact a member of Ogier's Corporate team in Ireland via their contact details below.

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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