Everything You Need to Know About Setting Up a Business in Ireland

Ireland has become one of Europe’s most attractive destinations for global entrepreneurs and investors. With a strong pro-business environment, low corporate tax rate, access to EU markets, and a highly skilled workforce, it's no surprise that many choose to establish operations here.

Whether you're expanding your existing company or starting something new, this guide walks you through the essentials of offshore business setup in Ireland, from structure selection to legal requirements, tax setup, and more.

Let’s break it down step-by-step.

Why Set Up a Business in Ireland?

Before getting into the process, here’s why Ireland is a smart choice for international business:

• 12.5% corporate tax rate – one of the lowest in the EU

• Member of the European Union and Eurozone

• Highly educated, English-speaking workforce

• Strong legal and regulatory framework

• Global hub for tech, pharma, and financial services

• No restrictions on foreign ownership in most sectors

Ireland also ranks highly in the World Bank’s ease of doing business indicators, making it a friendly environment for both startups and established businesses.

Step-by-Step Guide to Setting Up a Business in Ireland

1. Choose the Right Legal Structure

Your business structure determines your legal obligations, tax treatment, and administrative requirements. The most common types in Ireland are:

• Private Company Limited by Shares (LTD): Most popular for SMEs. Offers limited liability, flexible management, and only one director required (must be an EEA resident unless you buy a bond).

• Designated Activity Company (DAC): Suitable for companies with a defined business purpose or specific regulations (e.g., financial services).

• Branch Office: For foreign companies that want to operate in Ireland but without forming a separate legal entity.

• Sole Trader: Easiest and fastest to start, but with unlimited liability.

For international entrepreneurs, setting up a Private Limited Company (LTD) is usually the most practical route.

2. Choose a Company Name

Your company name must be:

• Unique (not identical or too similar to an existing registered name)

• Not misleading or offensive

• Compliant with naming conventions set by the Companies Registration Office (CRO)

You can check availability and reserve your company name via the CRO website.

3. Register the Company

To officially incorporate your company in Ireland, you need to submit Form A1 and a constitution to the Companies Registration Office (CRO). This includes:

• Company name

• Business address

• Shareholder and director details

• Company secretary (required for all LTDs)

• Details of share capital

Once processed, you’ll receive a Certificate of Incorporation, which means your business is legally recognized in Ireland.

4. Register for Taxes

Next, register with the Revenue Commissioners for the relevant tax obligations:

• Corporation Tax

• VAT (Value-Added Tax) – required if your turnover exceeds €37,500 for services or €75,000 for goods

• Employer PAYE/PRSI – if you plan to hire employees

This is done online through Revenue's eRegistration system.

5. Open a Business Bank Account

To operate in Ireland, you’ll need an Irish business bank account. Requirements usually include:

• Certificate of Incorporation

• Company constitution

• Proof of ID and address for directors/shareholders

• Tax registration confirmation

Some banks may require you to meet in person, while others offer virtual onboarding for non-residents.

6. Set Up a Registered Office and Director Residency

• You must have a registered office address in Ireland (can be different from your trading address).

• At least one director must be an EEA resident. If not, you’ll need to purchase a Section 137 Non-EEA Resident Bond as insurance for compliance.

Key Compliance Requirements

After registering your company, you’ll need to remain compliant with Irish corporate law and tax regulations.

Annual Return and Accounts

• Submit an Annual Return (Form B1) to CRO.

• File financial statements annually, even if the company is dormant.

Register with the Central Register of Beneficial Ownership (RBO)

All Irish companies must disclose details of individuals who ultimately own or control more than 25% of shares.

Maintain Statutory Registers

You must keep records of directors, shareholders, meetings, and beneficial ownership.

Corporation Tax Returns

File tax returns annually with Revenue, even if the company makes no profit.

Advantages of Opening a Business in Ireland

• 100% foreign ownership allowed

• Access to EU and global markets

• Attractive tax incentives and R&D credits

• Multilingual, skilled talent pool

• Transparent legal system and easy repatriation of profits

These features make Ireland a top-tier choice for startups, holding companies, tech firms, and service providers.

Potential Challenges to Consider

• EEA residency requirement for directors
  Non-EEA directors must post a bond or appoint a resident director.

• Tax complexity
  While corporate tax is low, Ireland has a detailed and well-enforced tax system. It's advisable to work with a qualified local accountant.

• Physical presence may be required
  Some banks and service providers still require in-person meetings, especially for non-resident owners.

Despite these, Ireland remains one of the most efficient places to launch and grow a company, especially with the right local partners.

Final Thoughts

Setting up a business in Ireland is a strategic decision for global entrepreneurs looking for a European base with favorable tax policies, ease of access to talent, and strong legal protections.

With the right planning—choosing the correct structure, understanding tax obligations, and ensuring legal compliance—you can register and launch your company in Ireland with confidence.

If you’re looking for assistance with incorporation, director services, or ongoing compliance, our team can help simplify the process and ensure everything is done right from the start.

FAQs

1. Can a non-resident open a company in Ireland?
Yes, non-residents can fully own a company in Ireland. However, you’ll need at least one EEA-resident director or must purchase a non-EEA resident bond.

2. How long does it take to register a company in Ireland?
It usually takes between 5 to 10 working days once all documentation is complete and submitted to the CRO.

3. What taxes do companies in Ireland pay?
The main taxes include Corporation Tax (12.5%), VAT, and employer-related taxes (PAYE, PRSI). Some businesses may also qualify for R&D tax credits.