Setting Up a Company in Ireland: Costs, Steps, Tax & Rules

Thinking about setting up a company in Ireland? The country’s 12.5% corporation tax and business-friendly environment draw entrepreneurs worldwide, but the real cost goes well beyond the €50 CRO fee. This guide walks you through the full process, from choosing your structure to understanding tax residency rules, so you know exactly what you’re signing up for.

CRO registration fee: €50 ·
Commercial formation service: €99 + VAT ·
Corporation tax rate: 12.5% ·
VAT rate: 23% ·
Annual return filing fee: €20

What is the cost of setting up a company in Ireland?

Beyond the €50 CRO fee, formation agents charge €99 + VAT for a basic package (Incorpro). Annual returns cost €20 each year. Hidden costs include a virtual registered office (≈€230–€419/year, Commenda; Kinore), a professional company secretary (from €329/year, Kinore), and a Section 137 bond if no director is EEA-resident (€2,475 + VAT, Kinore).

Registration fees

The CRO charges €50 for online filing and €100 for paper (Commenda).

Hidden costs like bank account and insurance

Business bank accounts are often free to open but may require minimum balances. Professional liability insurance varies by sector.

Cost comparison: DIY vs. using a formation agent

The implication: DIY saves money upfront but requires time and knowledge of Irish regulations.

How do I establish my own company?

Follow these steps to register a limited company in Ireland.

1. Choose a company name and structure – The name must be unique and approved by the CRO (CRO).
2. Prepare required documents – Form A1 (application) and a constitution (CRO).
3. File with CRO online or by post – Online costs €50 and takes 5–10 working days (Incorpro).
4. Register for taxes – Get a CRO number first, then register for Corporation Tax, VAT, and PAYE with Revenue (Open Forest). Use ROS for digital certificate.

“You must register for tax with Revenue when you start a new company.” – Revenue.ie

The pattern: most tasks can be done online, but non-residents should budget extra for a registered address and notary services.

How much tax do I need to pay as a limited company?

Corporation Tax rate and bands

Trading income is taxed at 12.5%; non‑trading income at 25% (Wise).

VAT registration thresholds

Thresholds: €85,000 for goods, €42,500 for services (Open Forest). Standard rate is 23%.

PAYE and PRSI for employees

Employers must deduct PAYE and PRSI from salaries. Registration with Revenue is mandatory.

The 50/100/500 rule for startup relief

Startup relief reduces corporation tax by 50% on profits up to €100,000 for the first three years, provided the company has fewer than 500 employees (Revenue).

“A Section 137 Bond is required if no directors are EEA-resident, costing around €2,475 plus VAT.” – Kinore

The catch: relief applies only to new trades and cannot exceed the total tax due.

What is the 183 day rule in Ireland?

Tax residency rules for individuals

An individual is tax resident if they spend 183 days or more in Ireland in a tax year (Revenue). A second test counts 280 days over two years.

How the 183-day rule affects company directors

Directors who are non-resident avoid personal Irish tax on foreign income, but the company’s control and management location may trigger corporate residency.

The 2-year rule for small companies

A company is treated as Irish resident if it is incorporated in Ireland, unless it is managed and controlled in another country for at least two years (Citizens Information).

What this means: non-resident entrepreneurs can avoid corporate residency if they hold board meetings abroad and central management is elsewhere, but they must document this carefully.

Do I need an accountant if I’m a limited company?

Legal requirements for financial statements and audit

All limited companies must file annual returns with the CRO and prepare financial statements. Audit exemption applies if turnover < €12 million and employees < 50 (CRO).

Benefits of using an accountant

An accountant handles tax planning, payroll, VAT returns, and corporation tax computation. The cost is typically €500–€2,000 per year depending on complexity.

When you can manage without one

Small, simple companies with minimal transactions can use accounting software (e.g., Xero, QuickBooks) and file their own returns. However, professional advice often pays for itself in tax savings.

The implication: if your turnover is under €100,000 and you have no employees, a DIY approach may work, but hiring an accountant reduces compliance risk.

För den som vill förstå grunderna rekommenderas en genomgång av vad ett limited company innebär, då samma struktur används i både Storbritannien och Irland.

Frequently Asked Questions