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Step-by-Step Guide to Setting Up a Company in Ireland

12 min read January 2024

Setting up a company in Ireland involves several important steps beyond just registration. This comprehensive guide takes you through the entire journey from initial planning to your first day of trading.

€50

CRO fee (online)

3-5 Days

CRO processing

7 Steps

To full setup

4 Types

Business structures

Step 1: Choose Your Business Structure

Your first major decision is choosing the right legal structure. This affects your liability, taxation, and compliance requirements.

Sole Trader

Simplest structure

No CRO registration

You are personally liable for business debts. All profits are yours but higher tax at higher incomes.

Advantages

  • Simple to set up
  • Less paperwork
  • All profits yours

Disadvantages

  • Unlimited liability
  • Higher tax rates

Partnership

2+ people

Shared liability

Two or more people sharing profits and liabilities. Each partner is responsible for the business debts.

Private Limited Company (LTD)

Separate legal entity

Recommended

A separate legal entity with limited liability. Most popular choice for Irish businesses.

Advantages

  • Limited liability
  • Tax efficient
  • Professional image

Disadvantages

  • More compliance
  • Annual filings

Limited Liability Partnership (LLP)

Protected partners

Partners with limited liability protection. Common for professional services firms.

Pro Tip

If you expect profits over €50,000, a limited company becomes more tax-efficient due to the 12.5% corporation tax rate compared to up to 52% marginal income tax for sole traders.

Step 2: Plan Your Business

Before registering, develop a clear plan covering these essential areas:

Business Name

Check availability with CRO before committing

Products/Services

Define exactly what you'll offer

Target Market

Identify who your customers are

Pricing Strategy

Determine how you'll charge

Funding Requirements

Calculate your startup capital needs

Legal Obligations

Understand compliance requirements

The Complete Setup Process

3

Register Your Company

For a limited company, register with the CRO

  • Check company name availability
  • Prepare company constitution
  • Complete Form A1
  • Submit online via CORE (€50) or by post (€100)
  • Receive Certificate of Incorporation (3-5 days)
4

Register for Taxes

Within 30 days of starting to trade, register with Revenue

  • Corporation Tax (12.5% on trading profits)
  • VAT if turnover exceeds thresholds
  • PAYE/PRSI if you have employees
5

Open a Business Bank Account

A separate business bank account is essential

  • Certificate of Incorporation required
  • Company constitution
  • Director ID documents
  • Proof of business address
6

Set Up Your Systems

Establish bookkeeping and operational systems

  • Choose accounting software (Xero, QuickBooks, Sage)
  • Set up chart of accounts and invoice templates
  • Prepare terms and conditions
  • Create privacy policy and service agreements
7

Insurance and Compliance

Protect your business with appropriate coverage

  • Public liability insurance
  • Professional indemnity insurance
  • Employer's liability (if hiring)
  • Register beneficial ownership (RBO)

VAT Registration Thresholds

You must register for VAT if turnover exceeds €37,500 for services or €75,000 for goods. Voluntary registration is possible below these thresholds. Learn more in our VAT returns guide.

Company Setup Checklist

Choose business structure
Check company name availability
Register with CRO
Register for taxes with Revenue
Open business bank account
Set up bookkeeping software
Arrange business insurance
Register beneficial ownership (RBO)
Set up contracts and terms
Create your website

Typical Setup Costs

Cost ItemAmount
CRO registration (online)€50
Professional incorporation service€299-€599
Registered office address (yearly)€100-€200
Public liability insurance (yearly)€250-€500
Accounting software (yearly)€150-€360

Recommended Software

Popular

Xero

Cloud accounting, great for small businesses

Scalable

QuickBooks

Feature-rich, good for growing companies

Established

Sage

Traditional choice, comprehensive features

Ready to Set Up Your Company?

Let us handle the paperwork while you focus on building your business. We'll guide you through every step of the process.

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