Ireland is renowned for its entrepreneurial spirit, business-friendly environment, and vibrant tech and innovation scene. Therefore, it is a great place to start a business. It boasts one of the best corporate tax systems in the world, a young, highly educated, and skilled workforce, and a strategic gateway to Europe via its close proximity to the UK and the EU, offering access to over 500 million consumers, making it attractive to expat entrepreneurs from around the world. Ireland is also the only English-speaking country in the EU. It's no wonder the Emerald Isle is ranked by Forbes as one of the 15 best countries for business.
Good to know:
Ireland currently has one of the lowest corporate tax rates in the European Union, with a standard rate of 12.5%, compared to 25% in France, and 30% in Germany. Ireland is also home to many of the world's leading companies, creating a vibrant and diverse business ecosystem.
Is it easy to start a business in Ireland?
If you are from the European Economic Area (EEA) or Switzerland, or you are a UK citizen, you do not need permission to set up a business in Ireland. If you are not a EU/EEA or Swiss national, or a UK citizen, and you want to open a business or invest in Ireland, then you will need to apply for permission to do so via certain pathways, such as the Start-up Entrepreneur Programme.
Start-up Entrepreneur Programme (STEP)
You can apply for permission to set up a business in Ireland as a non-EEA national under the Start Up Entrepreneur Programme. This allows businesses that have a high level of potential to set up shop in Ireland and to grow in scope.
You must meet specific criteria to be eligible, including having start-up capital of at least €50,000. Applicants must be capable of creating 10 jobs in Ireland and achieving at least €1 million in sales within 3 to 4 years of starting up. Your business should also have a unique product or service with the potential for international growth. The scheme is not intended for retail, personal services, catering, or other businesses of this nature.
There is a fee of €350 to apply for this programme.
Once approved for the STEP route, applicants are granted residence permission for two years. They can also bring their immediate dependents with them to Ireland. This applies to partners/spouses and unmarried children 18 and under. It is possible to extend the initial residence permission for an additional three years to a total of five years. After this period, STEP members can apply for long-term residence in Ireland and eventually citizenship if they wish.
You will need a comprehensive business plan available for the Irish immigration services. The plan must contain proposed details such as your business objectives, market analysis, target customers, products or services, marketing strategy, operational plan, and financial projections.
You will also be required to submit a range of supporting paperwork, including:
- Valid passport;
- Evidence of qualifications and experience, including a CV and education certificates;
- Proof of financial resources to demonstrate you can support the business during the start-up phase. This can be in the form of bank statements, investment statements, or proof of asset ownership;
- A clean criminal record check and, if applicable, references from former employers;
- Proof of health insurance for the applicant and any accompanying dependents;
- Completed application forms;
- Recent colour passport photos.
Business structures in Ireland
One of the first steps when starting a new company in Ireland is choosing a business structure. Ireland offers several business types for entrepreneurs looking to start a business:
Private Company Limited by Shares
The most common type of company in Ireland, also known as an LTD company. Its benefits include:
- Limited liability, separating personal assets from business debts;
- Simple corporate governance structure;
- No minimum capital requirements;
- Flexibility in management structure;
- Only one director required (plus company secretary).
Other common types of structures
Other possible structures include:
Designated Activity Company (DAC) - Similar to an LTD but with a defined area of activity, and shareholders have limited liability.
Public Limited Company (PLC) - For larger businesses that wish to offer shares to the public and be listed on the stock exchange.
Limited Partnership (LP) – There has been a strong growth in the number of LPs in Ireland, following the UK's leaving the European Union. It is often the choice for investment funds or real estate ventures. One partner will have unlimited liability, while one or more limited partners will have their liability limited to the amount of their investment.
Branch Office - When an overseas company sets up an office in Ireland to offer products or services within the country, this is referred to as a branch office structure.
Unlimited Company – Offers no liability protection but greater privacy.
Partnership - Suitable for professionals who want to work in Ireland as partners.
Sole Trader - The most straightforward business structure, a sole trader is someone who creates a company under their own name or a registered business name. The owner is personally responsible for all debts and obligations. This type of business structure is ideal for freelancers and independent entrepreneurs.
For further information on the different business structures in Ireland, go to the Companies Registration Office (CRO) website.
Registering your company in Ireland
There are steps you must complete to register your company in Ireland if you are a non-EEA entrepreneur:
- Choose your business structure.
- Select and check the availability of your company name. Choose a unique business name and verify that it's available using the Companies Registration Office (CRO) CORE tool.
- Appoint company directors and shareholders. You'll need at least one director and one shareholder. If you don't have a resident director who lives in the EEA, you'll need to secure a non-EEA director's bond.
- Arrange your registered office address in Ireland.
- Prepare your company constitution. Once you've identified shareholders, you can form your company's constitution. This critical document outlines two things: authorised share capital (the maximum number of shares the company can issue) and issued share capital (the actual number of shares issued to the shareholders). The constitution must be signed by all shareholders.
- Appoint a company secretary. Under Irish law, registered companies must appoint a separate company secretary aside from directors and shareholders. The company secretary is responsible for making sure your business complies with Irish company law.
- Complete Form A1 and submit all documents to the CRO.
- Pay the registration fee (€50 for online applications or €100 by mail)
- Receive your Certificate of Incorporation from the CRO. If your business registration is approved, you'll receive a certificate of incorporation from the CRO. Company incorporation documents must be signed by your company secretary, director(s), and shareholder(s).
Once you receive your Certificate of Incorporation, your company must register for taxes with the Revenue Commissioners in Ireland within 30 days.
VAT and taxes in Ireland
Value Added Tax (VAT) is a tax on goods and services sold. In Ireland, the standard VAT rate is 23%. If your business makes more than a certain amount each year, you must register for VAT. Keeping track of sales and purchases is important for working out your VAT.
How your business is taxed depends on whether it is incorporated as a company. If it is a company, then it is liable for corporation tax. Corporation tax is on company profits at a 12.5% rate for trading income. The rules for getting deductions and credits can change how much tax you pay. If it is not incorporated, you are considered to be a sole trader and you pay tax under the self-assessment system.
Further information on tax is available on the Revenue website.
Government supports and incentives for setting up a business in Ireland
The Irish government offers a range of funding and support for new companies through grants, tax incentives, and other funding mechanisms, which can help you get your business off the ground.
Enterprise Ireland
Enterprise Ireland is a government organisation that provides funding for innovative start-ups and grants for international expansion, including:
Start-up Grant – Help for new companies in their first year. You must be a registered company with a business plan.
Innovation Voucher – Support for businesses wanting to innovate. Available for registered SMEs in any sector.
Research and Development Grants – Money for R&D to improve products. Companies need to show they can make a big impact.
There are also various incubators, accelerators, and co-working spaces available, providing a nurturing environment for start-ups to thrive.
Local Enterprise Offices
Local Enterprise Offices (LEOs) assist small businesses with training and low-interest loans. They provide a range of complementary supports, including grants to local businesses that are starting up or in development. Grant support is only available to eligible businesses (internationally traded services or manufacturing). The supports range from providing an initial "First Stop Shop" service where individuals can receive advice on the steps involved in setting up a business, to the provision of grants for feasibility studies, provision of financial support for the establishment of new businesses or expansion of existing ones, and the provision of a range of soft supports such as training and mentoring.
Financial support is available to qualifying businesses only, in the establishment and/or growth phase of their business, and that employ up to ten people. Businesses operating in the domestic market (regardless of numbers employed), such as sole traders, micro businesses and small and medium-sized companies, may avail of the soft supports available from the Local Enterprise Office, such as First Stop Shop, Mentoring and/or Training programmes.
The Irish government also offers tax incentives, such as a three-year corporation tax exemption for businesses earning less than €40,000 annually in profits.
Moreover, the Start-up Relief for Entrepreneurs (SURE) programme is an income tax refund for people who leave employment to become entrepreneurs and start up their own company. You must use your refund to set up your new company, which must be an SME that will carry out relevant trading activities. The investment must be based on a business plan. Your company must demonstrate that the investment will contribute directly to the creation or maintenance of employment in the company, or if your company is not yet trading, that your company will use the investment for research and development activities.
Useful resources for entrepreneurs in Ireland
Your Local Enterprise Office provides information, advice, and financial support to small businesses.
Enterprise Ireland is an Irish Government agency responsible for the development of Irish industry. It provides advice and financial support to start-ups, including market research, mentoring, and financial assistance.
IDA (Irish Development Authority) Ireland is an Irish Government agency with responsibility for securing new investment from overseas in manufacturing and internationally traded services sectors. It can provide information about setting up a business in Ireland and may provide grants to companies wishing to locate in Ireland or expand their existing operations in Ireland.
Small Firms Association (SFA) and Irish Small and Medium Enterprises (ISME) provide their members with advice and information about running a business.
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