Ireland's combination of a low headline corporation tax rate, an English-speaking market, and full access to the EU has made it one of Europe's more popular places to incorporate, and the registration process itself is refreshingly quick. Here's what it takes to start a business in Ireland in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Sole trader. You and the business are the same legal entity, with the least paperwork of any structure. You're personally liable for business debts, and profit is taxed at your personal Income Tax rate.
- Partnership. Two or more people running a business together, with liability generally shared across the partners.
- Private company limited by shares (LTD). A separate legal entity with limited liability and access to the 12.5% trading rate of corporation tax, at the cost of more ongoing compliance.
As a rough guide, incorporating starts to pay off once profit is consistently above about €40,000 to €50,000, where the gap between personal Income Tax (up to 40%, plus USC and PRSI) and the 12.5% corporation tax rate becomes large enough to justify the extra admin.
2. Register your business
Sole traders
If you're trading under your own name, there's nothing to register with the Companies Registration Office (CRO). If you want to use a business name instead, you'll file Form RBN1 with the CRO for €20 online. Either way, you'll register with Revenue as a self-employed person using Form TR1, which is free.
Limited companies
You form an LTD by filing Form A1 online through the CRO's CORE system (core.cro.ie), for €50 online or €100 by paper. You'll need a unique company name, at least one director who's resident in the European Economic Area (or a Section 137 bond providing about €25,000 of cover if you don't have one), a company secretary, a registered office in Ireland, and a constitution, for which the CRO's pre-approved template can speed things along. Online approval typically takes 5 to 10 working days.
3. Register for tax
Incorporating with the CRO doesn't register you for tax. Companies separately register for Corporation Tax, VAT, and PAYE/PRSI as applicable using Form TR2 through Revenue's eRegistration service, and Corporation Tax registration is mandatory within one month of starting to trade. There's no fee for any of this.
4. Check licenses and permits
Ireland doesn't issue a single national business license. What you need depends on your industry: regulated professions and certain sectors, food, alcohol, childcare, construction, need their own authorization, and local authorities may layer on their own requirements. Check with the relevant regulator directly.
5. Understand Irish taxes
Sole traders pay Income Tax on profit: 20% up to around €44,000 (the exact cut-off varies slightly by year and personal circumstances), 40% above that, plus PRSI at 4.2% and the Universal Social Charge (USC), which is tiered separately.
Irish limited companies pay corporation tax at 12.5% on trading income, a rate that held steady through the 2026 budget, and 25% on non-trading or passive income like investment returns. Very large multinationals fall under separate OECD Pillar Two minimum tax rules, but this doesn't affect typical Irish small businesses.
VAT registration is required once turnover is expected to exceed €42,500 for services or €85,000 for goods within any 12-month period. The standard VAT rate is 23%.
6. Stay compliant
Every Irish company files a Register of Beneficial Owners (RBO) return within five months of incorporation. Your first CRO Annual Return (Form B1) is due exactly six months after incorporation, with no financial accounts required on that first filing, then annually after that with accounts attached. Companies also 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.