The issue of establishing a presence in the other jurisdiction is generally more relevant to service providers rather than to sellers of goods. Sellers of goods can manufacture or procure their products within Ireland and establish a satisfactory means of delivery of those goods into Northern Ireland. The goods may be sold through shops within Northern Ireland and therefore the origin of the manufacture of those goods is not that important. However, a service provider will be providing a personal service and, as such, his presence and identity to the client may be considered more important.
Advantages of it include:
- More direct access to that market. Where you don’t establish an actual presence and you are not planning to service the market directly from Ireland, you are relying on the integrity of sales agents, distributors and couriers’/transport agents. It may be difficult at times to convince buyers/clients that you are in a position to provide an effective service within that jurisdiction where you do not actually have a presence in that jurisdiction.
- Wider opportunities for grant aid depending on your business sector.
- There are also some attractive tax saving methods available in the UK, such as generous capital allowances, Professional tax advisers in Northern Ireland should be able to advise on these issues, enhanced tax reliefs, for e.g. Research and Development, Patent Box.