The combination that keeps drawing founders to Ireland is a low headline corporation tax rate, an English-speaking workforce, and unrestricted access to the EU single market, and on top of that, the registration process itself moves quickly by European standards. Here's the process as it stands in 2026.
1. Sole trader, partnership, or LTD
Three structures account for most Irish businesses.
- Sole trader. Legally the same entity as you, and the lightest structure on paperwork of the three. Debts fall on you personally, and profit gets taxed at your personal Income Tax rate.
- Partnership. Two or more people in business together, with liability typically shared among the partners.
- Private company limited by shares (LTD). Its own legal entity, offering limited liability and the 12.5% trading rate of corporation tax, in exchange for a heavier ongoing compliance load.
A useful rule of thumb: incorporating tends to make financial sense once profit consistently sits above roughly €40,000 to €50,000, the point where the gap between personal Income Tax (which can reach 40%, plus USC and PRSI) and the 12.5% corporation rate is wide enough to justify the extra paperwork.
2. Registering the business
Sole traders
Trading under your own name means nothing to file with the Companies Registration Office (CRO). Want a business name instead? File Form RBN1 with the CRO for €20 online. Either way, you'll also register with Revenue as self-employed using Form TR1, which costs nothing.
Limited companies
Forming an LTD means filing Form A1 online through the CRO's CORE system (core.cro.ie), which costs €50 online or €100 on paper. You'll need a unique company name, at least one director resident in the European Economic Area (or, lacking that, a Section 137 bond providing roughly €25,000 of cover instead), a company secretary, an Irish registered office, and a constitution, and the CRO's pre-approved template constitution can make that last piece quick. Online applications are typically approved within 5 to 10 working days.
3. Registering for tax
CRO incorporation and tax registration are two separate things. Companies register independently for Corporation Tax, VAT, and PAYE/PRSI as needed, using Form TR2 through Revenue's eRegistration service, and Corporation Tax registration has to happen within one month of starting to trade. None of it carries a fee.
4. Licenses and permits
Ireland has no single national business license covering everything. What you need comes down to your industry: regulated professions and sectors like food, alcohol, childcare, and construction each need their own authorization, and local authorities sometimes add requirements of their own on top. Check directly with the relevant regulator.
5. Income tax, corporation tax, and VAT
Sole traders pay Income Tax on profit: 20% up to roughly €44,000 (the precise cut-off shifts slightly by year and personal circumstances), 40% above that, plus PRSI at 4.2% and the Universal Social Charge (USC), which is banded separately again.
Irish limited companies pay corporation tax at 12.5% on trading income, unchanged in the 2026 budget, and 25% on non-trading or passive income such as investment returns. Very large multinationals answer to separate OECD Pillar Two minimum tax rules, though that's not a concern for a typical small Irish business.
VAT registration is required once turnover is expected to exceed €42,500 for services or €85,000 for goods within any 12-month period, with the standard rate sitting at 23%.
6. Staying compliant
Every Irish company files a Register of Beneficial Owners (RBO) return within five months of incorporation. The first CRO Annual Return (Form B1) falls exactly six months after incorporation, with no financial accounts needed on that first one, then every year afterward with accounts attached. On top of that, companies file an annual Corporation Tax return (Form CT1) with Revenue.
Ireland business costs at a glance
| Item | Cost |
|---|---|
| Sole trader business name registration (if applicable) | €20 online |
| LTD company registration (Form A1) | €50 online / €100 paper |
| Section 137 bond (no EEA-resident director) | ~€25,000 cover |
| Revenue tax registration (TR1/TR2) | Free |
| Corporation tax, trading income | 12.5% |
| Corporation tax, passive income | 25% |
| VAT registration threshold | €42,500 services / €85,000 goods |
| VAT (standard rate) | 23% |
Frequently asked questions
How much does it cost to register a limited company in Ireland?
€50 online (€100 by paper) via Form A1 through the CRO's CORE system, plus a Section 137 bond of about €25,000 cover if you don't have an EEA-resident director.
What's the corporation tax rate in Ireland?
12.5% on trading income, 25% on non-trading or passive income like investment returns.
Do I need an EEA-resident director to form a company in Ireland?
Yes, unless you provide a Section 137 bond, roughly €25,000 of cover, as an alternative.
When do I need to register for VAT in Ireland?
Once turnover is expected to exceed €42,500 for services or €85,000 for goods in any 12-month period. The standard VAT rate is 23%.
How long does it take to register a company in Ireland?
Online approval through the CRO typically takes 5 to 10 working days.
Fees and rates above come from the Companies Registration Office and Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Ireland-qualified accountant or solicitor about your specific situation.