Doing business in Ireland
Ireland is a great place to do business. The country has a strong economy, with low taxes and a pro-business environment. There are many opportunities for businesses in Ireland, but there are also some challenges that you will need to overcome if you want to be successful. In this article, we will discuss the opportunities and challenges of doing business in Ireland, and we will also give you some tips on how to succeed.
Quick Reference Irish Company Setup at a Glance
Essential Requirements
- At least one EEA-resident director
- One shareholder
- Company secretary
- Irish registered address
- IPN number for each director
Bond required: €1,800-€2,000 (2 years)
Typical Setup Costs
| Company registration | €950 |
| IPN (per person) | €350 |
| VAT registration | €300 |
| Basic setup (1 person): | ~€1,600 |
Add €3,000+ for 6 months nominee director service if needed
Start a company in Ireland
Get a free-of-charge quote for setting up a company in Ireland. Our professionals can help you arrange all paperwork and give you custom advice where needed.
Start a company in Ireland - step-by-step
This guide outlines the essential steps and considerations for businesses looking to expand their operations to Ireland. It draws upon several of our case studies of foreign companies to illustrate the process and requirements.
Initial Consultation and Assessment
Begin by scheduling a consultation with a professional specializing in Irish company formations. During this meeting, discuss your business objectives, products or services offered, and overall expansion plans. The consultant will then provide tailored advice on the optimal approach for establishing your presence in Ireland.
Company Registration and Structure
A common strategy is to form an Irish company with your existing company as a shareholder. This structure facilitates straightforward financial transactions between your entities.
The company registration process in Ireland generally involves the following steps:
1. Verification of Identification: Obtain an Individual Personal Number (IPN) for each director.
2. Company Registration: Officially register your Irish company with the relevant authorities.
3. Tax Registration: Register for corporate and income tax with the Irish Revenue.
4. Banking: Open a corporate bank account with an Irish bank.
5. VAT Registration: If your business will conduct taxable transactions in Ireland or within the EU, you'll need to register for Value-Added Tax (VAT).
Note: The process of obtaining an IPN may involve additional steps and time for non-EU residents, potentially including a meeting with a notary.
Visa Considerations for Non-European Businesses
For non-European entrepreneurs and their key personnel who plan to relocate to Ireland, visa applications will be essential. Your consultant can advise on the appropriate visa types and assist with the application process.
VAT Registration and Takeover Option
In some cases, it may be possible to expedite the setup process by taking over a dormant Irish company that already possesses a VAT number. This can be particularly advantageous for businesses eager to commence trading immediately. However, it's crucial to ensure that the dormant company has no prior trading history or liabilities.
Nominee Director Service
Consider engaging a Nominee Director service, especially if you are unfamiliar with Irish business practices and regulations. A Nominee Director can provide expertise, ensure compliance, and assist with various aspects of company administration.
Billing and Payment
The consultant will provide a detailed breakdown of their fees, which may include costs associated with company registration, tax registration, IPN applications, VAT registration, and Nominee Director services.
Here's a sample breakdown of potential fees, based on a 2024 project involving a Irish limited company with 3 persons involved:
- Company and Tax Registration, Company Secretary/Annual, and Registered Address/Annual: 950 EUR
- Verification of Identification for 3 persons: 1050 EUR
- VAT Registration: 300 EUR
- 6 months of Nominee Directorship Service: 3000 EUR ex VAT
- Total: 5300 EUR ex VAT
The 'Resident Director' Requirement
Starting a business in Ireland as a non-EU resident can seem straightforward, but there's a key requirement that often surprises foreign entrepreneurs: the resident director rule. Understanding this before you start can save you time and money.
To incorporate a company in Ireland, you must have at least one director who is a resident of the European Economic Area (EEA). Note that this person does not need to be a citizen of the EEA, just a resident. The EEA includes all EU member states plus Iceland, Liechtenstein, and Norway. This is a common hurdle for entrepreneurs from countries like the US, UK, India, or Australia.
Without an EEA-resident director, your company cannot be incorporated. There are, however, two primary solutions to this.
The Two Solutions
- EEA-Resident Director: If one of your co-founders or directors is a citizen and resident of an EEA country, you can use them to meet the requirement. This is the simplest and most cost-effective solution.
- The Bond: If you don't have an EEA-resident director, you can purchase a non-resident director bond. This is an insurance policy that costs around €1,800 to €2,000 and must be renewed every two years. It's a guarantee to the Irish government that if the company fails to pay certain fines or penalties, the bond will cover them.
Before you begin the company formation process in Ireland, verify if you have an EEA-resident director. This small detail dictates whether you can incorporate with minimal fuss or if you will need to purchase the two-year non-resident director bond. Knowing this upfront is a must.
For more detailed information on Irish company law and director requirements, refer to the official Companies Registration Office (CRO) website.
Company formation consultants in Ireland
Business opportunities in Ireland
There are many business opportunities in Ireland. The country has a strong economy, with low taxes and a pro-business environment. There are many opportunities for businesses in Ireland, but there are also some challenges that you will need to overcome if you want to be successful. In this article, we will discuss the opportunities and challenges of doing business in Ireland, and we will also give you some tips on how to succeed.
Some of the most promising business opportunities in Ireland include:
- Technology: The technology sector is booming in Ireland, and there are many opportunities for tech companies looking to do business in this country. The Irish government is actively supporting the growth of the technology sector, and there are many incentives available for tech companies doing business in Ireland.
- The pharmaceutics and life sciences sector is one of the most important in Ireland. The country is a major player in the global pharmaceuticals industry, and it is home to many leading medical device companies. There are many opportunities for companies in this sector, and the Irish government is actively supporting its growth. There are several incentives available for companies in the pharmaceutics and life sciences sector doing business in Ireland. These include: tax breaks, grants and funding and fast-track approval.
- This is a very important point to note for businesses looking to do business in Ireland. The country has a strong export sector, and exports play a major role in its economy. The Irish pharmaceuticals, medical devices and software industries are some of the largest in the world, so there are many opportunities for companies in these industries.
- Manufacturing: There are many manufacturing opportunities in Ireland, thanks to the country's strong economy and pro-business environment. Companies that manufacture goods in Ireland can benefit from the country's low taxes and access to European markets.
- Tourism: Tourism is a major industry in Ireland, and there are many opportunities for businesses in this sector. The Irish government is investing heavily in tourism, and there are many incentives available for businesses that operate in this sector.
Challenges of doing business in Ireland
There are also some challenges that you will need to overcome if you want to do business in Ireland. Some of the most common challenges include:
The main challenge is that finding suitable housing for employees in Ireland can be a difficult and time-consuming process. Many SMEs and startups are met with the challenge of limited rental options and high rental prices.
Labor costs: Labor costs can be high in Ireland, particularly when compared to other countries in Europe. This can be a challenge for businesses that are not used to paying high wages.
The cost of living in Ireland can be expensive, particularly in larger cities such as Dublin. The cost of housing, food, and transportation can be quite costly, so you will need to factor these expenses into your budget if you plan to do business in Ireland.
Ireland's geographical location in the north-west of Europe, making it a long journey for many companies to do business with this country.
An additional 'issue' with the location of Ireland within Europe is its border with Northern-Ireland, part of the United Kingdom. Since the UK has left the EU after Brexit, the
The Irish economy is heavily reliant on exports, which can make it vulnerable to economic downturns in other parts of the world.
The country has a small population, which can limit the size of the market for businesses operating in Ireland.
The regulatory environment can be challenging for businesses operating in Ireland. The Irish government is very strict when it comes to regulations, and businesses need to be aware of all the applicable laws and regulations.
Business consultants in Ireland
Tax advantages of doing business in Ireland
The Irish government offers a wide range of tax incentives for businesses operating in Ireland. This includes a lower corporate tax rate, a tax exemption for new businesses, and a variety of tax credits and deductions available for businesses.
There are a number of tax advantages available for businesses operating in Ireland. The most significant advantage is the lower corporate tax rate, which is one of the lowest in entire Europe. This compares favorably to the corporate tax rates in other European countries, and it makes Ireland an attractive location for businesses to set up shop.
Even lower rates may apply for highly innovative businesses.
The Irish government also offers a tax exemption for new businesses. This means that businesses that are new small businesses can apply for an additional tax cut in their first years of operation.
Additionally, the Irish government offers a wide range of tax credits and deductions for businesses. This includes a research and development credit, a foreign earnings deduction, and a deduction for start-up costs.
Ireland is a member of the European Union, which means that businesses can take advantage of the EU's 'single market' and do business with other member states at reduced costs. Furthermore, profits from subsidiaries in other countries can normally be transferred free of tax to the Ireland HQ.
The Irish government is committed to promoting foreign investment in this country, and they offer a number of incentives to businesses that set up operations in Ireland.
The Irish economy is stable and has weathered the most recent global recessions well. This makes Ireland an attractive place to do business, as your company will be less likely to experience financial problems in the event of another economic downturn.
Ireland has a well-educated workforce and is known for its high-quality infrastructure. This makes it easier for businesses to operate in this country and enables them to more easily export their products and services to other parts of the world.
???? Case Study: Hong Kong Payment Gateway's European Expansion
The Challenge
Hong Kong-based payment gateway needed EU base for UK, Irish, and Nordic markets. Founder relocating personally but no existing EU/EEA directors. Required full payment institution licensing with immediate hiring and genuine operations.
Jurisdictions Evaluated
???????? Ireland: 90-day licensing, 12.5% corporate tax, EUR 25,000 bond eliminates director residency requirement, strong HK tax treaty, English-language operations
???????? Netherlands: Fastest EU licensing (5-6 months), Europe's most developed fintech ecosystem, requires different structuring for non-EU founders
???????? Estonia: Digital-first approach, 0% tax on retained profits, complete digital management capabilities, ideal for capital-efficient growth
???????? Denmark: No director residency requirements, strong Nordic market access
???????? Germany: Scale opportunity but significantly higher complexity and cost
The Brexit Factor
No EU location provides automatic UK market access post-Brexit - separate UK licensing needed regardless. This made Ireland's common law system and regulatory relationships more valuable.
The Decision
Ireland won. Total first-year investment: EUR 1.2-2.0M for full EMI licensing + 8-person local team. EU passporting provides access to all target markets with single authorization.
Tax advisors & Accountants in Ireland
Business bank account in Ireland
Opening a bank account in Ireland is a relatively simple process. You can do this at any of the major banks in the country. In order to open an account, you will need to provide some basic documentation, including your passport or driver's license and proof of address. You will also need to provide information about your company, such as its registration number with the CRO.
In most cases an EU business bank account is actually sufficient! So choosing one of the banks below works too.
Business banks in Ireland
Visa and relocation to Ireland
If you are an EU national, you can move and do business in Ireland without a visa. However, if you are not an EU national, you will need to obtain a visa in order to live and work in Ireland. The Irish government offers a number of different types of visas, including visas for investors, entrepreneurs, and workers. One of the most popular ones is the Irish startup visa, called STEP.
The Irish Startup Visa, officially known as the Start-up Entrepreneur Programme (STEP), offers a pathway for non-EEA nationals with innovative business ideas to establish their companies and reside in Ireland. This guide details the current rules, requirements, costs, timeline, and practical steps for applying for the Irish Startup Visa.
What is the Irish Startup Visa?
Introduced in 2012, the STEP is designed to attract experienced entrepreneurs and professionals with innovative business plans that can contribute to Ireland's economy. Successful applicants can obtain a two-year residency permit, renewable for a further three years, and potentially leading to permanent residency after five years.
Benefits of the Irish Startup Visa:
- Access to the Irish and European markets: Ireland is a growing business hub with a strong presence of multinational companies and financial institutions, providing access to both the Irish and European markets.
- Path to residency: The STEP offers a clear path to permanent residency after five years, allowing entrepreneurs to establish roots in Ireland.
- Reasonable investment requirement: Compared to other startup visa programs, the Irish Startup Visa has a relatively low minimum investment requirement of €50,000.
- Family inclusion: Successful applicants can bring their immediate family (spouse/partner and dependent children under 18) to Ireland.
Requirements for the Irish Startup Visa
- Innovative business proposal: The proposed business must be innovative and have the potential to contribute to the Irish economy, focusing on sectors such as manufacturing, internationally traded services, and technology.
- Minimum funding of €50,000: Applicants must demonstrate access to at least €50,000 in funding to establish their business. This funding can come from personal resources, business loans, angel investors, venture capital, or a combination of sources.
- No criminal record: Applicants must have a clean criminal record in any jurisdiction.
- Comprehensive health insurance: Applicants must have comprehensive health insurance coverage.
- Good character: Applicants must be of good character and provide a statement of character from police authorities where they have resided for more than six months in the past 10 years.
Application Process
- Complete the STEP application form: The application form can be found on the Irish Immigration Service Delivery (ISD) website.
- Gather supporting documents: This includes passport, photographs, comprehensive health insurance details, evidence of funding, business plan, and statement of character.
- Pay the application fee: The non-refundable application fee is €350.
- Submit the application: The application must be submitted online to the email address provided on the application form.
Timeline
The processing time for the Irish Startup Visa is typically 12 to 16 weeks.
Practical Considerations
- Accommodation: Secure accommodation before arriving in Ireland or book a hotel for a few nights while searching for a more permanent residence.
- Cultural adaptation: Be prepared to adapt to Irish culture and customs.
- Banking: Open a personal and business bank account in Ireland. We recommend the following banks when doing business in Ireland.
Further reading:
Ireland abandoned its golden visa (resident by investment scheme) called IIP. If you are interested in countries with such programs, please read this golden visa comparison article.
The process of obtaining a visa can be complicated, so it is important to consult with an immigration lawyer or the Irish embassy in your home country to determine which visa is best for you.
Start-up Entrepreneur Programme Flowchart
Relocation and Visa Experts in Ireland
Legal contracts for doing business in Ireland
Contracts are an essential part of doing business in any country. When doing business in Ireland, you will need to have a number of different contracts in place. Some of the most important contracts include:
- Employment contract: All employees in Ireland must have an employment contract, which outlines the terms and conditions of their employment.
- Contractor agreement: Service contracts are used for contractors and consultants, and outline the specific services that will be provided.
- Terms and conditions: used for businesses that are supplying goods or services to another company or consumer. This contract outlines the terms and conditions of the sale, as well as the payment terms.
- Shareholders' agreement is a contract between the shareholders of a company. It outlines the rights and responsibilities of each shareholder, as well as how they will be compensated. This document is important for businesses that have more than one shareholder, as it helps to ensure that everyone is aware of their rights and responsibilities.
When negotiating any type of business contract, it is important to have a lawyer who can help you protect your interests. The Irish legal system can be complex, so it is important to have someone who understands the laws in this country.
Legal advisors and lawyers in Ireland
Office and real estate in Ireland
The office market in Ireland is competitive, with rents and prices increasing in recent years. Office space can be expensive, particularly in Dublin and other larger cities.
There are a number of different types of office space available in Ireland, including:
- Serviced offices: these are fully furnished and equipped offices, which are typically leased on a short-term basis
- co-working spaces: these are shared workspaces where members share common areas and services
- Business parks: these are large complexes that offer office space, as well as other amenities such as restaurants and retail outlets
- Virtual offices: these allow businesses to have a physical address in Ireland without having to lease or purchase office space
The Irish economy has been growing steadily in recent years, and this has led to an increase in demand for office space. The market is still expected to continue to grow over the next few years.
(Virtual) office providers in Ireland
Hiring employees in Ireland
The hiring process in Ireland can be relatively complex, particularly for businesses that are not used to working with the Irish government. Here are some of the steps that you will need to take:
- Register with the Department of Social Protection: All employers in Ireland must register with the Department of Social Protection and must pay social welfare contributions for their employees. You can find more information on the Department of Social Protection's website.
- Obtain a tax number: All businesses in Ireland must obtain a tax number from the Irish Revenue Commissioners. You can find more information on the Revenue Commissioners' website.
- Obtain a PPS number: All employees in Ireland must have a Personal Public Service (PPS) number. You can find more information on the PPS Number website.
- Set up a payroll system: You will need to set up a payroll system to track and report employee wages and taxes. You can find more information on the Revenue Commissioners' website.
Get funding for your Irish company
There are a number of ways that you can fund your company in Ireland. Some of the most common options include:
- Bank loans: You can obtain a bank loan from a number of different banks in Ireland. The interest rates on bank loans in Ireland are relatively high, but the banks are willing to lend to businesses that have a good credit history.
- Venture capital: There is a healthy venture capital market in Ireland, and you can obtain funding from venture capitalists if your business has a solid track record and a strong business plan.
- Government grants: The Irish government offers a number of grants to businesses that operate in certain sectors or have a certain level of innovation. You can find more information on government grants on the website of Enterprise Ireland, the Irish government's agency for funding and supporting businesses.
- Crowdfunding: You can raise money from individual investors through crowdfunding platforms such as Kickstarter or Indiegogo. This is a popular option for businesses that need to raise smaller amounts of money.
Investors and lenders in Ireland
Is Ireland a good pick for your business?
In short, there are a good number of reasons why you should consider doing business in Ireland. It is not for everyone, but Ireland does have a few objective advantages over many other European countries:
- The Irish economy is one of the strongest in Europe, and the country has a very low unemployment rate.
- The native language is English, which makes it very easy to get started and communicate with customers, partners and government institutions.
- The Irish government is actively encouraging businesses to start up in Ireland, and offers a number of incentives for businesses that operate in certain sectors.
- The Irish business environment is very friendly to startups, and the government offers a wide range of support for businesses that are just starting out.
- The Irish tax system is favourable to businesses, and there are a number of tax breaks available for companies that operate in Ireland.
Get in touch
About Ireland
Mollie
Mollie is a leading European payment service provider that empowers businesses of…
View Profile
Enterprise Ireland
Enterprise Ireland provides businesses with financial support and accompanying services to help…
View Profile
Bibby Financial Services
Bibby Financial Services is a leading factoring company that specializes in providing…
View Profile
Other posts on Ireland
Sorry, we couldn't find any posts. Please try a different search.