Ireland
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If you are interested in starting a business in Ireland, the experts on Relocate are here to support you during this process. It takes a lot of market research to launch a company in another country. Through Relocate, you can easily connect with Irish Advisors who can guide you through this process.
Dig deeper into important issues by submitting general inquiries to qualified Advisors in Ireland. You can also request consultations directly with Irish Advisors to get detailed-tailored advice and make informed decisions about your next move .
Starting a Business in Ireland
Not only is Ireland a great place to live — it is also an amazing place to own a business. As a foreign entrepreneur, there are many intriguing business opportunities awaiting you in the Emerald Isle.
Overseas companies make up a substantial amount of the Irish economy. There are more than 1,600 overseas companies in the country that hire more than 250,000 people. In fact, foreigner-owned companies are responsible for about 20% of all private-sector employment.
This article will walk foreign business owners through forming and operating a company in Ireland. For additional guidance, browse qualified Advisors and read featured Articles on Relocate, an independent marketplace for global migration.
Why Start a Business in Ireland?
Whether you are an established multinational company, a small business owner or launching a startup, there are numerous benefits to owning a business in Ireland as a foreigner.
The economy is booming in Ireland, which enjoys the fourth-highest GDP in the world. This is thanks, in part, to the many overseas investors that pump around €19.2 billion into the economy each year. Even coming out of the economic crisis caused by the pandemic, Ireland remains strong, recording higher growth in 2020 than all other major economies in the world.
Foreign investors often see Ireland as a strategic move. Operating from Ireland provides easy access to the rest of Europe, both by proximity and because the country is a member of the European Union (EU) and Eurozone.
Businesses are also drawn to the low corporate tax rate. At 12.5%, Ireland has one of the lowest corporation tax rates in Europe. There are other tax incentives, as well, including a 25% tax credit for research and development costs and double taxation agreements with dozens of countries.
Types of Businesses in Ireland
If you are starting a business in Ireland, it is important to understand the types of companies permitted there, so you can select the best legal entity for your endeavor. There are various business types to choose from, many of them limited companies that create separate legal entities from those forming them, protecting their personal assets. Here are some of the more common types of businesses in Ireland.
This is probably the most common type of incorporation in Ireland and is the equivalent of a limited liability company (LLC). The company’s members’ liability is limited to the amount unpaid on shares they hold. And there is a limited number of members — 149 — who can be involved.
As a private company, a designated activity company (DAC) is limited to the activities laid out in its memorandum and articles of association. It must have a minimum of two directors and a maximum of 149 members.
This type of public company is ideal for nonprofit companies and nongovernmental organizations, as it establishes a separate legal entity, and corporate protection, in bodies like charities, trade associations, sports clubs, societies and social clubs. Its members have limited liability and must contribute to the company’s assets.
Public limited companies (PLCs) are allowed to list their shares on the stock exchange and offer them to the public. There is no restriction on the number of shareholders, but a PLC must have a minimum of two directors. It must also have a minimum issued share capital of €25,000.
Unlimited Company
Unlimited companies, which make up only around 2% of all companies in Ireland, do not offer limited liability to their members. They have two-document constitutions, at least two directors, and one or more members.
Limited Partnership
In this business structure, there is no separate legal entity, and some members have limited liability, which is based on their contribution, for the company’s debts. Most limited partnerships cannot consist of more than 20 people.
Societas Europaea Company
This European public limited company is formed through EU regulation.
Sole Trader/General Partnership
This option involves the registration of a business name as an individual or partnership as an alternative to a limited company. There is no separate legal entity formed and no limited liability. This registration also does not prevent others from registering under the same or a similar name.
Holding Company
This is a common legal structure for international companies, as there are significant tax benefits, including capital gains tax exemption, foreign dividends exemption, double tax relief, dividend withholding tax and transfer pricing.
Branch/Subsidiary
These are also attractive options for foreign companies in Ireland. Subsidiaries create separate legal identities separate from the parent company. Meanwhile, a branch company or office is considered an extension of the parent company.
How Foreigners Can Start a Business in Ireland
The process of starting a business in Ireland will vary based on the type of business you intend to launch. There are other factors that can affect your company formation, including whether you plan to move abroad and whether you currently own a business that you want to expand to Ireland.
There are multiple government agencies to help you through this process. The Citizens Information Board in Ireland is a national agency that provides information regarding various social services. Through this agency, you’ll also be able to learn much about starting a business in Ireland as a foreign investor.
You’ll also come to rely on the Companies Registration Office (CRO) and Enterprise Ireland as you form your new business or expand your existing company. Once you are in Ireland, you can also visit your local enterprise office (LEO) for additional information and advice for local businesses.
Not ready to reach out to the Irish government? A qualified Advisor on Relocate can provide preliminary advice on starting a business in Ireland. Browse qualified Advisors in Ireland today.
If you are a European Economic Area (EEA) citizen or Swiss national, it is easy for you to live and work in Ireland as an employed or self-employed individual. You also do not need to receive any special permissions to start a business there. U.K. citizens also have the right to work in Ireland. This includes as a self-employed person.
For those from other countries, the Immigrant Investor Programme (IIP) offers a number of investment options for approved non-EEA investors and their immediate family. This program allows them to stay in Ireland for up to five years with a possible renewal.
Any investment you propose will be scrutinized before being given approval. It must be considered good for the public interest in Ireland and bring jobs to the country. Your endeavor must be funded solely by your own money, rather than borrowed funds, and you must have a minimum net worth of €2 million.
There are four categories under which your proposed business must fall:
1. Enterprise Investment: This involves a minimum €1 million aggregate investment into new companies or existing Irish businesses for at least three years. This could be your own startup registered in your name or an investment in one or more existing Irish businesses. 2. Investment Fund: This involves a minimum €1 million investment in an investment fund for at least three years. The investment fund must invest in Irish businesses or projects. 3. Real Estate Investment Trust: This involves a minimum €2 million spread across one or more Irish REIT listed on the Irish Stock Exchange. 4. Endowment: You must give at least €500,000 to a public project in the arts, sports, health, culture or education.
The Start-up Entrepreneur Programme (STEP) is designed to encourage non-EEA citizens in the early stages of starting their enterprises to bring their innovative business ideas to Ireland. A minimum funding of €50,000 is required for this program. The program also offers 12-month immigration permission to individuals participating in incubators or innovation bootcamps and mentoring programs leading up to their STEP application. This program also allows those accepted, and their immediate families, to stay in the country for up to five years.
It is possible to start a business in Ireland without moving there — you just need to be aware of the legal requirements.
Most Irish companies have more than one director. At least one of these directors must be an EEA resident, meaning they are residents of one of these countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain or Sweden.
It should be noted that nationality and residency are not the same in this scenario. An Irish national living abroad would still need to find an EEA resident to serve as a director of their business.
If none of the company’s directors meet this requirement, your company must take out a non-EEA resident director bond of €25,000 in case the company fails to pay any taxes, fines or penalties.
Also, even if you are not living in Ireland, your company must have a registered address there, an Irish bank account, and you must be paying corporate and income taxes.
If you are expanding an existing non-Irish business into Ireland, you have several options that could work well for you.
Many international companies opt to create a holding company as an easy way to expand into Ireland. When you create a holding company, it will become a majority shareholder of your existing international company. An Irish holding company can hold shares in multiple companies at the same time. Most holding companies are registered as a private company limited by shares or a private unlimited company.
In addition to holding companies, you might choose to go with a branch or subsidiary of your existing company. The main difference between the two is that a subsidiary creates a new, separate legal identity of your parent company, while a branch office is an extension of your existing business.
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