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How to start a business in Ireland? Requirements, taxes & more
Start your business in Ireland. Updated requirements for 2026, tax benefits, and steps to incorporate your LLC.
Ireland has become one of the world’s top destinations for international businesses. Companies like Google, Meta, Apple, and LinkedIn all run their European operations from Dublin. While its business-friendly tax system plays a role, it’s far from the only reason. A reliable legal framework, easy access to the EU market, English as the main language, and a business environment that has welcomed talent and investment for years all make Ireland an attractive place to grow.
If you’re thinking about starting a company in Ireland, you’ve probably heard about the 12.5% corporate tax rate. But you might still be wondering how it actually works. How much does it cost to set up a company? What do you need as a foreigner? What other taxes do you have to pay? And what are the steps to get started? In this guide, we’ll explain everything you need to know.
How much does it cost to start a business in Ireland?
Let’s start with the cost. The good news is that setting up a company in Ireland is affordable. The most common type of company for foreigners, a Private Limited Company (LTD), only requires €1 in share capital. There are no large deposits, no blocked funds, and no high upfront costs.
What you do need to consider are the costs involved in the process:
- Company registration: Registering your company with the Companies Registration Office (CRO) costs about $115 for a paper application submitted through the CRO’s online CORE system.
- Professional formation service: Most foreign entrepreneurs use an Irish company formation service to handle the setup for them. These services typically cost around $800 to register a company. Annual maintenance and compliance costs usually start at about $1,035 per year, depending on the provider and the services included.
- Registered office: Every company in Ireland must have a registered business address in the country to receive official correspondence. If you don’t have your own office, you can use a registered office service, which typically costs around $690 per year.
- Corporate secretary: Every Irish LTD must have a company secretary. Many formation providers also offer company secretary services for an additional fee. Be sure to ask about the cost when comparing providers.
- Accounting and annual audit: Every company in Ireland must file annual accounts with the CRO. Small businesses that meet certain requirements may be exempt from an audit, but they still need an accountant to prepare their financial statements. The cost of this service varies depending on the size and activity of the business.
Overall, a foreign entrepreneur using a local company formation service can expect to spend between $1,725 and $2,875 to set up an Irish LTD in the first year. This usually includes company registration, a registered office address, and the initial administration and compliance services.
Although the upfront costs are higher than in countries like Bulgaria or Portugal, Ireland offers a strong international reputation, full access to the EU market, and one of Europe’s lowest corporate tax rates.
What types of companies can you set up in Ireland?
Ireland offers several business structures, so choosing the right one from the start can save you time, money, and unnecessary hassle later on. These are the main options available to foreign entrepreneurs:
1. Private Limited Company (LTD)
By far the most common option. An LTD can be set up with just one director, but it must also have a separate company secretary. If there’s only one director, that person can’t act as the company secretary as well.
Shareholders are only responsible for the money they invest in the company. An LTD also gives you the flexibility to carry out different business activities without being tied to a specific business purpose. It’s the most common choice for small businesses, startups, consultants, and tech companies.
2. Designated Activity Company (DAC)
This is a type of limited company with a specific business purpose. It has more legal requirements than an LTD and is mainly used for regulated businesses, such as financial services, non-profit organizations, or certain financing activities.
3. Sole Trader
This is the simplest way to start a business in Ireland. You don’t need to set up a separate company. Instead, you can trade under your own name or a registered business name. It also involves much less paperwork, with no annual accounts to file, no company secretary, and no shareholder meetings.
The downside is that you have unlimited personal liability. If the business runs into debt, your personal assets could be at risk. For that reason, this option is usually best for freelancers and small businesses with low financial risk.
4. Partnership
A partnership is a business owned by two or more people. All partners are personally responsible for the business’s debts, and a lawyer is usually needed to draft the partnership agreement. It’s not a popular option for foreign entrepreneurs starting a business in Ireland.
5. Branch of a foreign company
If you already own a company outside Ireland, you can open a branch there. A branch isn’t a separate company; it operates as part of your existing business.
The branch must be registered with the CRO and follow Irish tax and accounting rules. It can be a good option if you expect to make losses in the early years, as you may be able to offset those losses against profits in your home country.
What do you need to start a business in Ireland?
Ireland is open to foreign entrepreneurs, and there are no nationality restrictions on owning or managing an Irish company. That said, there are a few key requirements you should know before getting started.
1. EEA-resident director
This is the requirement that catches most foreign entrepreneurs by surprise. Every Irish LTD must have at least one director who lives in the European Economic Area (EEA).
If none of the directors lives in the EU or EEA, the company must obtain a Section 137 Bond. This is a type of financial guarantee that covers certain obligations under Irish company and tax law. The cost depends on the provider, so it’s an extra expense to factor in if you’re based outside the EEA.
2. Company secretary
Every Irish LTD must appoint a company secretary. There are no residency requirements for this role, but the person must be capable of handling the company’s legal and filing obligations with the CRO. Many businesses choose to outsource this role to a professional provider.
3. Registered office in Ireland
Your company must have a registered address in Ireland. This can be your own office, your company formation provider’s address, or a virtual office service. It will be used for official notices and correspondence from Irish authorities.
4. Company constitution
An Irish LTD is formed with a single constitutional document that combines the memorandum and articles of association. It sets out how the company is run, its governance structure, and the rights of its shareholders.
The CRO provides a standard template that works for many businesses. However, if your company has multiple shareholders, different share classes, or employee share options, it’s usually worth having a lawyer prepare a customized constitution.
5. PPS numbers for the directors
The Personal Public Service (PPS) Number is Ireland’s personal identification number. Directors who need to sign official documents or actively manage the company in Ireland will usually need to obtain one.
You can apply for one through the Department of Social Protection.
6. Opening a business bank account
You’ll also need a business bank account. Opening one in Ireland can take time because banks require detailed identity checks for all directors and owners.
Some banks may ask you to visit a branch or meet with a representative in person. Online options like Revolut Business and Wise Business often let you open an account remotely, but it’s worth checking that they’re accepted by your clients and suppliers.
7. Visas for non-EU citizens
Citizens of the European Union can settle and start businesses in Ireland without needing a visa.
If you’re from outside the EU and plan to live in Ireland while running your business, you’ll need the right visa. The most common options are the Entrepreneur Visa and the Start-up Entrepreneur Programme (STEP), which is designed for high-potential businesses.
What taxes must be paid to start a business in Ireland?
Ireland’s tax system is popular with international entrepreneurs. But looking only at the corporate tax rate can be misleading if you don’t understand the full picture. Here’s what you need to know, and you can read our full guide on taxes in Ireland for more details.
1. Corporation Tax
The corporate tax rate on active business income is 12.5%. This rate applies to most trading businesses, including small companies and startups. Passive income, such as investment income, interest, and foreign dividends, is taxed at 25%.
For large multinational companies with global revenues above $865 million, the OECD’s Pillar Two rules set a minimum effective tax rate of 15%. However, these rules do not apply to small businesses or most individual entrepreneurs.
2. Startup Relief
New companies may qualify for a corporate tax exemption during their first three years of operation, as long as their annual profits do not exceed $46,000.
For profits between $46,000 and $69,000, a partial tax relief may apply. This can be especially helpful for new businesses that are still growing and not yet generating high profits.
3. VAT
The standard VAT rate is 23%. Reduced rates also apply: 13.5% for sectors such as construction and certain energy services, and 9% for hospitality, restaurants, and hairdressing services.
VAT registration is required if your annual turnover exceeds $98,000 for goods or $49,000 for services. Below these limits, registration is optional, but it allows you to reclaim VAT paid on business expenses.
4. PRSI (Pay Related Social Insurance)
PRSI is Ireland’s social insurance system. Employers pay 11.25% of each employee’s gross salary (the rate in effect since October 2025, with further increases expected in 2026 and beyond).
Employees contribute 4.35% through payroll deductions. Directors can also be liable for PRSI depending on their role and how they are paid.
5. R&D Tax Credit
Companies involved in research and development can benefit from a 35% tax credit on qualifying R&D expenses.
This credit is fully refundable, meaning that if it exceeds the company’s tax bill, the difference can be paid out in cash. It’s a particularly valuable incentive for tech startups and software companies.
6. Knowledge Development Box (KDB)
Income from patents, copyrighted software, and other qualifying intellectual property assets is taxed at an effective rate of 10% under this scheme. It is a widely used tax planning tool for technology companies operating from Ireland.
7. Double taxation agreements
Ireland has double tax treaties with more than 70 countries. This is especially important for entrepreneurs who have business activities or clients in multiple countries and want to avoid paying tax twice on the same income.
What are the steps to set up a company in Ireland?
Once you know the requirements and have chosen the right structure, the process follows a clear set of steps. Here’s how it works in practice.
1. Choose your company name and check its availability
The company name must be unique in the Irish register. You can check if it’s available on the CRO website using the company search tool.
If you want to protect your business name before setting up the company, you can register it separately with the CRO for $25. You’ll usually get a response within 20 days. This can be useful whether you’re starting as a sole trader or setting up an LTD.
2. Prepare the company constitution and appoint directors and a secretary
For a standard LTD, you can use the CRO’s template, which makes registration quicker and easier. If you need a custom constitution, a lawyer or specialist firm can prepare it for you.
At this stage, you also choose the directors, make sure at least one lives in the EEA (or arrange a Section 137 Bond if none do), and appoint the company secretary.
3. Register the company with the CRO
All documents, including Form A1 with the details of the directors, shareholders, and company address, along with the constitution and registration fee, are submitted through the CRO’s online CORE system.
The process usually takes three to five working days. Once approved, the CRO issues the Certificate of Incorporation and gives the company its registration number.
4. Obtain a tax ID number
After incorporation, the company must register with Revenue (the Irish tax authority) to get its tax number. This is done using Form TR2 and usually takes five to seven working days.
Revenue also handles VAT registration. If VAT registration is required based on your expected turnover, the process can take an additional two to three weeks.
5. Open a business bank account
Once you have the Certificate of Incorporation and tax number, you can apply for a business bank account. Make sure you have proof of identity and address for all directors and beneficial owners, as Irish banks carry out strict anti-money laundering checks.
If you choose digital banking, make sure the terms of service fit your business model before you commit.
6. Register for PAYE/PRSI if you plan to hire employees or pay yourself as a director
If the company will pay salaries in Ireland, either to employees or to you as a director, you must register with Revenue for the PAYE/PRSI system. This allows you to deduct and pay the required taxes and social contributions.
You must also register on the myGovID portal to manage your tax obligations online through the ROS (Revenue Online Service) system.
7. Meet your annual obligations
Once the company is up and running, there are ongoing requirements that must be kept up with. The most important is the annual return (Form B1), which must be filed with the CRO on time. Late filings can result in fines and, in serious cases, the company may be removed from the register.
The corporate tax return must be filed through the ROS portal nine months after the end of the financial year. Keeping up with these deadlines is one of the main reasons why having a local accountant or service provider from the start is highly recommended.
How can I get internet access for a business trip to Ireland?
Ireland is not part of the Schengen Area, but it is still in the EU. This means many visitors can enter freely, although Ireland has its own border controls. For a business trip to Dublin, you’ll need the usual connectivity setup: video calls, access to cloud documents, and communication with your local service providers.
With Holafly’s monthly plans, you get unlimited data or 25 GB to use in more than 160 countries. You can manage your subscription through the app, with no contracts or long-term commitments. This means you can cancel your plan at any time without any extra fees. Plus, you won’t have to worry about finding a local SIM card when you arrive at the airport.
If your plan expires, Always On gives you 1 GB of monthly data automatically in more than 70 countries, including Ireland, at no extra cost. It turns on by itself, so you don’t have to do anything. It’s a useful backup when you need internet access and don’t have time to find another option.
What if you’re only traveling to Ireland for a few days to take care of some business setup tasks? In that case, Holafly’s Ireland eSIM is a great option. It gives you unlimited data for the exact number of days you choose.
Frequently asked questions about starting a business in Ireland
Yes, but at least one LTD director must reside in the EEA. If not, the company needs a Section 137 Bond. A sole director cannot also be the company secretary.
The CRO usually takes three to five working days to register the company once all documents are submitted. Tax registration with Revenue takes another five to seven working days. If you need VAT registration too, it can take an extra two to three weeks. Overall, the process can be completed in less than a month if your documents are ready.
Not necessarily. You can register your company with the CRO online through the CORE system or use a local provider to do it for you. However, some Irish banks may require you to visit in person to open a business account. With digital banking, you may be able to complete the whole process without traveling.
Not always. The 12.5% rate applies to active business income from the company’s main activities. Passive income, such as investment returns, interest, or foreign dividends, is taxed at 25%. Classifying your income correctly from the beginning helps avoid tax surprises later.
No. EU citizens can move to Ireland and set up a company without a visa or special permits. However, they may need a PPS Number if they manage the business from Ireland and must register as residents if they stay for more than three months.
This is a corporate tax exemption for new companies during their first three years, as long as annual profits stay below $46,000. For profits between $46,000–69,000, partial relief is available. If your business is just starting and profits are still low, this incentive can greatly reduce your tax bill in the early years.
Yes. Ireland has double taxation agreements with many countries. They define which country can tax different types of income and help prevent the same profits from being taxed twice. This is especially important for entrepreneurs who operate or have clients in more than one country.
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