Setting up a company in Ireland: What foreign employers need to know
Despite its small population, Ireland is a country that overseas business owners and employers shouldn’t overlook. From Dublin to Cork, the Emerald Isle offers a low corporate tax rate, the youngest population in Europe, and a gateway to 741 million potential consumers via its close proximity to the UK and the EU. It’s no wonder Ireland is ranked by Forbes as one of the 15 best countries for business.
Whether you’re an overseas entrepreneur, a growing startup, a small business looking to expand globally, or an international enterprise, there are many reasons to expand your business to Ireland—or hire employees there. But setting up a company in Ireland or any foreign country comes with challenges, especially if you aren’t familiar with the legal and regulatory requirements you’ll encounter.
In this guide, we’re helping business owners learn the legal requirements, business structures, and alternatives to setting up a company in Ireland—like partnering with an employer of record service to hire overseas employees without registering a company.
Why register a company in Ireland?
If you want to hire and pay employees in Ireland without using a third-party service provider like an employer of record (EOR), establishing a local legal entity is another viable option. Setting up a company in Ireland allows you to legally hire employees in the country. It also gives you more control over operations, compliance, and brand representation in the Irish market than you’d get with an alternative like an EOR.
Pros and cons of a legal entity vs. EOR
Legal entity
EOR
✔ More operational control
✔ Direct relationships with employees
✔ Potential tax benefits
✘ Longer setup process
✘ Higher initial investment
✘ More administrative duties
✔ Faster market entry
✔ Fewer administrative duties
✔ Built-in compliance management
✘ Slightly less control over employee management
✘ May be more expensive as your business scales
Requirements for setting up a company in Ireland
Under Ireland’s company law, there are some requirements that all businesses, whether foreign or domestic—from sole traders to large enterprises—need to meet and follow.
While Ireland allows anyone to start a business in the country, those who aren’t European Union (EU), European Economic Area (EEA), or Swiss nationals are required to apply for permission first.
Most companies in Ireland are required to appoint company directors. While it isn’t strictly a requirement for any of your company directors to reside in a specific country, companies with Non-EEA resident directors must secure a bond valued at €25,000 to safeguard against company debts.
Additional requirements for new businesses in Ireland are similar to those in other countries: filing and paying tax returns and filing an annual return to update your business information with the government.
Common business entities for foreign companies in Ireland
One of the first steps when starting a new company—or expanding your business to Ireland—is choosing a business structure. In Ireland, there are two main company types that are common for foreign or overseas businesses looking to expand to the Emerald Isle: a limited company and an external company.
Limited company
In a limited company, shares are owned by shareholders. In a limited liability company, the shareholders’ liability is limited to the amount, if any, unpaid on the shares they hold. The company is separate and distinct from those who run it, and in the case of a foreign company expanding into Ireland, it’s separate and distinct from other businesses in other countries.
Irish limited companies come in multiple forms:
- Private Company Limited by Shares (LTD company)
- Designated Activity Company (DAC)
- Company Limited by Guarantee (CLG)
- Public Limited Company (PLC)
- Private Limited Company
- Unlimited Company
- Investment Company
- Societas Europaea
External company
The other common type of company for foreign business owners to start in Ireland is an external company, which is similar to a branch office. An external company is incorporated under the laws of another jurisdiction and establishes operations in Ireland. The Irish government requires the company to register if it:
- Has a physical place of business in Ireland
- Has the appearance of permanency in Ireland
- Has a person to manage the business in Ireland
- Has the authority to independently negotiate and contract directly with third parties in Ireland
However, external companies aren’t seen as separate legal entities from their “home” or “parent” companies.
Do you need a company seal?
Under the Companies Act 2014, all registered companies are required to have a company seal (also called a common seal), engraved with their company name and used to stamp and certify official documents.
How to register a company in Ireland
After choosing a business entity type, you’re ready to continue with company formation. Below, find a step-by-step guide to the registration process.
- Choose a company name. Choose a unique business name and verify that it’s available using the Companies Registration Office (CRO) CORE tool. Limited companies must include “Limited” or “Teoranta” to signify their legal status.
- Choose a registered office address. Every Irish company needs a registered office address where it can receive documents by mail.
- Appoint company directors and shareholders. Once you have a name and address, appoint your company’s 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.
- Form a company constitution. Once you’ve identified shareholders, you can form your company’s constitution. This critical document outlines two things: authorized 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.
- Prepare and register your company’s articles of association. You can file these with the CRO.
- Register for taxes. Depending on your business structure, you may need to pay income tax, corporation tax, value added tax, and other taxes. Tax registration is through the Revenue Commissioners.
- Open a business bank account. The bank may require a business plan, especially if you apply for credit.
Once you complete the steps above, and 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).
Employer of record: A time- and money-saving alternative to setting up a company in Ireland
As seen in the steps above, registering a company in Ireland can be time-consuming (and expensive). A potentially time- and cost-effective alternative is to partner with an employer of record (EOR) service.
An EOR is a third-party service provider that can help companies legally hire employees in other countries without establishing local business entities first. The EOR acts as the legal employer for the company’s foreign employees, hiring them on the company’s behalf to help comply with local tax, labor, and employment laws. It takes on employment-related HR duties like payroll processing, tax compliance, employment contracts, and benefits administration.
This allows you to hire employees in different countries without assuming as much risk—and without taking on as much time-consuming administrative work.
Rippling EOR can help you hire employees in Ireland quickly and compliantly. And if you ever decide to register a company in Ireland, Rippling can still help you save time and money by supporting your employees with global payroll—or even a complete workforce management platform.
Frequently asked questions about setting up a company in Ireland
Can a foreigner register a company in Ireland?
Yes, a foreigner can register an Irish business. Ireland allows non-resident directors to form and manage companies within the country. However, certain requirements may apply, such as appointing a local resident director or securing a bond.
What is a foreign entity for tax purposes?
For tax purposes, a foreign entity is a company or organization that is registered, managed, or controlled outside of Ireland. Foreign entities may have different tax obligations compared to domestic companies, depending on their activities within the country.Is it required to have a physical office in Ireland?
No, having a physical office is not strictly required to register a company in Ireland. However, every Irish company must have a registered office address within the country, which can be provided by a virtual office or a professional service provider, as long as it can receive documents.
How long does it take to register a company in Ireland?
Typically, company setup and registration takes between three to five working days, after submitting all the necessary documentation to the Companies Registration Office.
What is a beneficial owner?
A beneficial owner is an individual who ultimately owns or controls a company, either directly or indirectly. This person benefits from the assets and profits of the company, even if they are not listed as the legal owner on official records. EU law requires the beneficial owners of all companies to register to help monitor and prevent money laundering, so depending on your residency, that may be a requirement for your business.
This blog is based on information available to Rippling as of November 29, 2024.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.
