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50:50 rules waived off support for Irish startup company

Forum to discuss all things Blarney | Ireland immigration

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anand797
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Joined: Thu Feb 01, 2024 10:52 am
Ireland

50:50 rules waived off support for Irish startup company

Post by anand797 » Fri Feb 02, 2024 2:33 pm

Hi Guys,

For applying a new permit Irish company must have 50% staff as an EEA. But, this can be waived for the startup companies. Can anyone please help to apply support letter from either Enterprise Ireland or IDA Ireland?

Any help would be appreciated.

Thanks

meself2
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Posts: 3727
Joined: Mon Sep 06, 2021 5:10 pm
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by meself2 » Fri Feb 02, 2024 2:37 pm

anand797 wrote:
Fri Feb 02, 2024 2:33 pm
Can anyone please help to apply support letter from either Enterprise Ireland or IDA Ireland?
What usually happens is that the process is curated by these companies from the start, for example people applying via STEP that have approval and visa support from ISD already.

Have you got any endorsement from any bodies?
Not a qualified immigration adviser. Use links and references given to gain confirmation and/or extra information.

anand797
Newly Registered
Posts: 4
Joined: Thu Feb 01, 2024 10:52 am
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by anand797 » Fri Feb 02, 2024 3:28 pm

meself2 wrote:
Fri Feb 02, 2024 2:37 pm
anand797 wrote:
Fri Feb 02, 2024 2:33 pm
Can anyone please help to apply support letter from either Enterprise Ireland or IDA Ireland?
What usually happens is that the process is curated by these companies from the start, for example people applying via STEP that have approval and visa support from ISD already.

Have you got any endorsement from any bodies?
Thanks for your reply. Not yet and the company was register on 06/2022. On the other hand, the person who is gonna take the permit, he is already in Ireland.

anand797
Newly Registered
Posts: 4
Joined: Thu Feb 01, 2024 10:52 am
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by anand797 » Fri Feb 02, 2024 6:02 pm

anand797 wrote:
Fri Feb 02, 2024 3:28 pm
meself2 wrote:
Fri Feb 02, 2024 2:37 pm
anand797 wrote:
Fri Feb 02, 2024 2:33 pm
Can anyone please help to apply support letter from either Enterprise Ireland or IDA Ireland?
What usually happens is that the process is curated by these companies from the start, for example people applying via STEP that have approval and visa support from ISD already.

Have you got any endorsement from any bodies?
Thanks for your reply.
I asked with the company director, he just opened company as a startup, but not so sure about the STEP. Can you please explain little bit more. And the company was register on 06/2022. On the other hand, the person who is gonna take the permit, he is already in Ireland.

meself2
Moderator
Posts: 3727
Joined: Mon Sep 06, 2021 5:10 pm
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by meself2 » Sat Feb 03, 2024 2:29 pm

To be able to get the wavier through this, your firm has to be a client of IDA/Enterprise Ireland; it's not just a wavier-granting authority. That's why I mentioned STEP, as that's one of the main ways this relatioship is established, afaik.
DETE does not issue employment permits for jobs in businesses where at the time of application more than 50% of workers are from outside the EEA. This is called the ‘50:50’ rule.

There are some exceptions:

Where the company is new (registered with Revenue as an employer in the past 2 years) and has a letter of support from Enterprise Ireland or IDA Ireland. This only applies to companies that are clients of Enterprise Ireland or IDA Ireland.
For STEP, ISD has a page about it - https://www.irishimmigration.ie/coming- ... amme-step/

At the moment your situation looks rather strange - a company was dormant (?) for almost two years and suddently resurfaced to just hire a single nonEU employee, which seems to not have a way to stay in the country otherwise (and I assume they don't hold Stamp 4, otherwise they could've operated a business themselves). I don't think there's a magic silver bullet for this.
Not a qualified immigration adviser. Use links and references given to gain confirmation and/or extra information.

anand797
Newly Registered
Posts: 4
Joined: Thu Feb 01, 2024 10:52 am
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by anand797 » Sat Feb 03, 2024 8:27 pm

meself2 wrote:
Sat Feb 03, 2024 2:29 pm
To be able to get the wavier through this, your firm has to be a client of IDA/Enterprise Ireland; it's not just a wavier-granting authority. That's why I mentioned STEP, as that's one of the main ways this relatioship is established, afaik.
DETE does not issue employment permits for jobs in businesses where at the time of application more than 50% of workers are from outside the EEA. This is called the ‘50:50’ rule.

There are some exceptions:

Where the company is new (registered with Revenue as an employer in the past 2 years) and has a letter of support from Enterprise Ireland or IDA Ireland. This only applies to companies that are clients of Enterprise Ireland or IDA Ireland.
For STEP, ISD has a page about it - https://www.irishimmigration.ie/coming- ... amme-step/

At the moment your situation looks rather strange - a company was dormant (?) for almost two years and suddently resurfaced to just hire a single nonEU employee, which seems to not have a way to stay in the country otherwise (and I assume they don't hold Stamp 4, otherwise they could've operated a business themselves). I don't think there's a magic silver bullet for this.
No no the company wasn't dormant. The owner of the company were not able to afford Irish employee, just paying the zero tax last year. According the STEP we need 50,000 euro if we are non resident. But the company is already established by Irish resident, who is holding Stamp 4.

meself2
Moderator
Posts: 3727
Joined: Mon Sep 06, 2021 5:10 pm
Ireland

Re: 50:50 rules waived off support for Irish startup company

Post by meself2 » Sun Feb 04, 2024 2:55 pm

anand797 wrote:
Sat Feb 03, 2024 8:27 pm
No no the company wasn't dormant.
anand797 wrote:
Sat Feb 03, 2024 8:27 pm
just paying the zero tax last year.
Being dormant in the company sense might mean "have no business activity".
anand797 wrote:
Sat Feb 03, 2024 8:27 pm
The owner of the company were not able to afford Irish employee,
An obvious question would be then, why would Irish authorities give company owner an exemption in this case?
If they don't, the company would have to hire an Irish employee and pay them fair wages (more money for Irish govt); person who was meant to be sponsored will find a job with appropriate pay level (also more tax), so wins all around.
Not a qualified immigration adviser. Use links and references given to gain confirmation and/or extra information.

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