Starting a business in Ireland

Ireland’s corporate tax rate stands at 12.5%. For large multinational corporations with a global turnover exceeding €750 million, the rate is set to rise to 15% in 2024 under the OECD's global tax reform. Despite this, Ireland's tax regime remains highly attractive, particularly when compared to rates exceeding 20% in many other European nations.

Ireland has over 70 double taxation agreements (DTAs) with countries such as Australia, Canada, China, Italy, Germany, Singapore and the United States. These treaties are designed to prevent double taxation, ensuring that income generated is not taxed both in Ireland and abroad.

As part of the European Union (EU), Ireland enjoys unrestricted access to the other member states like France, Germany, Italy, Spain, and Sweden. This means trading without facing tariffs and complex customs procedures. Common standards and regulations enable businesses to operate under a unified framework, reducing the complexity and cost of regulatory compliance. This is particularly beneficial if you are looking to expand into other EU markets.

Ireland is also a member of the Eurozone, having adopted the Euro as its official currency in 1999. Presently, 20 of the 27 EU member states use the Euro. With expansion in mind, this may simplify future transactions and make it easier to consistently price your goods and services.

Ireland has a proportional representation method of voting in public representatives, leading to a diverse spread of political views and a distribution of parliamentary seats broadly in line with the wishes of the population. This is key of political stability.

Since the foundation of the state, one of the two major centre-right parties has always been in power and although historically they have been fierce rivals, they have been in coalition government since 2020.

This continuity of office provides assurance that the rule of law will not change rapidly or without notice and provides considerable stability for businesses seeking to plan for the long term.

Situated between Europe and the United States, Ireland offers companies a highly advantageous entry point into two of the world’s largest economic markets. Its strategic location allows businesses to easily access both the EU’s single market of over 450 million consumers and the expansive North American market, making it a prime hub for global operations.

Many leading multinationals, particularly in technology and pharmaceuticals, have chosen Ireland for their European headquarters. Firms such as Apple, Google, Pfizer and GSK have substantial operations here.

Additionally, Ireland’s well-developed transport links, including international airports and major shipping routes, further solidify its role as a key gateway for trade and investment between the important markets.

Ireland recognises both English and Irish as official languages, though English is much more widely spoken. As the de facto language for professional and social interactions, this presents a huge benefit for businesses coming from English-speaking countries.

The ease of communication can reduce potential misunderstandings and simplify many aspects of starting and running your business in Ireland. This may be useful when you are hiring talent, negotiating deals, and liaising with local partners and government bodies.

With a rapidly growing globally mobile population and a large presence of multinational companies, Ireland now boasts a highly diverse, multi-lingual workforce. With an increasing non-Irish workforce, languages from across the globe can be heard in all parts of the country.

Starting a business in Ireland means you can tap into a skilled and diverse talent pool. Ireland continues to have one of the most educated workforces in the world, with over 50% of people in the key 25-34 age group having a university degree or other third-level qualification.

In addition to cultivating a highly educated domestic workforce, Ireland is also actively attracting talent from overseas. For example, its Global Citizens 2030 initiative aims to boost the number of international higher education students by 10 percent and draw in outstanding PhD students for research and innovation.

Combined, this may provide you with a steady stream of domestic and international talent to tap into for your business growth in the years to come.

A private company limited by shares (LTD) is a popular type of structure for businesses looking to set up in Ireland. For this, your company name must end with “Limited” or “Teoranta.”

Ireland's regulations allow an LTD to have a flexible governance structure. The company can operate with a single director, provided a separate company secretary is appointed. This is unique to LTDs only, a feature that can better support small businesses and sole entrepreneurs in Ireland.

This company setup is also attractive as it limits members' liability to the amount unpaid on their shares, ensuring that personal assets are protected. An LTD may have up to 149 members, which allows for a broad base of ownership. Should your LTD have only one shareholder, it will be referred to as a single member company.

A designated activity company (DAC) can be either a private company limited by shares, or a private company limited by guarantee with share capital. When compared to an LTD, a DAC will have more specific regulations to which it must adhere.

As such, for entities incorporated for specific purposes like joint ventures, the requirements of the DAC structure can enable more control and governance. Trustee companies and special purpose vehicle (SPV) companies also typically opt for this company setup in Ireland.

A DAC will require at least two directors, and its name must end with “Designated Activity Company” or “Cuideachta Gníomhnaíochta Ainmnithe” unless it qualifies for an exemption.

For a DAC limited by shares, member liability during winding up is restricted to unpaid share amounts. Whereas in a DAC limited by guarantee, members are liable for unpaid share amounts as well as any promised contributions to the company's assets if it is wound up.

If you do not need to raise funds through the sale of shares, you might consider setting up a company limited by guarantee (CLG). A CLG needs at least two directors and unless granted an exemption, your company name must end with “Company Limited by Guarantee” or “Cuideachta faoi Theorainn Ráthaíochta.”

With a CLG, your members’ liability will be limited to the amount they have agreed to contribute to the company's assets in the event of winding up. This company setup is suitable for and is most often used by charitable organisations and professional bodies as it combines the features of limited liability and separate legal personality without requiring members to purchase shares.

If you are planning to list your business on the stock exchange and raise capital, you may consider the public limited company (PLC) structure. As a PLC, your shareholders can enjoy limited liability. However, as you might expect, a PLC brings with it more significant share capital requirements.

You must ensure that your PLC has a minimum nominal value of allotted share capital amounting to €25,000, with at least 25% paid up before you start business or exercise borrowing powers in Ireland.

As part of business registration requirements, you will need to appoint at least two directors, and your company name must end with “Public Limited Company” or “Cuideachta Phoiblí Theoranta.”

Unlike other company types, an unlimited company does not provide limited liability protection to its members. This means that if the company incurs debts or has other financial obligations, your members' personal assets may be used to meet these liabilities.

You may establish an unlimited company as either a public or private entity. A public unlimited company can either have share capital (PUC) or operate without share capital (PULC), while a private unlimited company is required to have share capital (ULC). This flexibility allows you to choose the most suitable form based on your financial and operational needs.

For the incorporation, you will need at least two directors, and your company name must end with “Unlimited Company” or “Cuideachta Neamhtheoranta.”

If you have one or more co-founders or business associates with whom you share a common business goal, you may consider forming a partnership. A partnership involves at least two individuals or entities collaborating with the aim of conducting business and generating profit.

Partnerships in Ireland can be formed by both natural persons and corporate bodies. A general partnership is the more common form, requiring at least two partners and typically accommodating up to 20. Here, you and your partners will share responsibility for the business, including its debts and obligations.

Alternatively, if you prefer to have a clear distinction between those who manage the business and those who simply invest, you may opt for a limited partnership instead.