Last updated: Apr 12, 2023
Ireland is an attractive location for businesses aiming to establish a European presence or expand their global operations. Boasting a competitive corporation tax rate of 12.5% and a business friendly environment, Ireland consistently ranks high up the list when deciding where to register a company in the EU. However, businesses should also consider regulations, local taxes, costs, and other factors outlined below before setting up a company in Ireland from abroad.
If you want to know more about these implications, then you can book a video consultation with an Incorpro accountant via the button below for €99 + VAT.
From 23 April 2023, when filing incorporation documents with the Companies Registration Office (CRO), company directors will be required to provide their PPS numbers. If you do not have an Irish PPS number, then you must apply for an Verified Identity Number, by means of a Form VIF - Declaration as to Verification of Identity.
The VIF is a Declaration as to Verification of Identity containing the name, date of birth, nationality and address of the person. The company director must solemnly declare this information to be correct and true and have this Declaration verified, witnessed and signed by a Notary Public. Incorpro will submit the form to the CRO on behalf of the director, obtaining the VIF Number in order to proceed with the company registration.
Irish registered companies are regarded as tax resident in Ireland unless they are deemed tax resident in another jurisdiction under a Double Taxation Treaty. An Irish company that is centrally managed and controlled from another treaty jurisdiction will be regarded as tax resident in that jurisdiction and subject to taxes there. For further information, see Revenue's company residence guidance note here.
When registering for VAT in Ireland, the tax authorities allow for Domestic VAT registration and Intra-EU VAT registration. To obtain Intra-EU VAT registration, the Revenue Commissioners will request evidence of trade within the state, so the company must demonstrate that it has tangible business in State with someone physically located in Ireland making business decisions. See the note on our website here for more information.
Salary payments to proprietary directors i.e. directors controlling > 15% of share capital, must be taxed at source in Ireland under Irish tax rules. It may be possible to request a refund of Irish tax after the year end by filing an Irish Income Tax Return. The Revenue Commissioners have a short note regarding payments to proprietary directors here.
Dividend Withholding Tax (DWT) at 25% operates on distributions from an Irish company. Qualifying non-residents are exempt from DWT, so long as they provide certain documentation to the company - see Revenue Commissioners guidance note here.
Beneficial owners of Irish companies with a greater than 25% interest must register with the RBO. Beneficial owners that do not hold a PPSN (Irish social security number) are required to have a Form BEN2 signed and stamped by a notary in their home country and this form must be provided to the RBO. See the note on our website here for more information.
Irish companies are required to have at least one EEA Resident Director. As the UK left the EU on 1 Jan 2021, UK residents are no longer considered part of the EEA. There are two options available to an incorporating company that does not have an EEA Resident Director (see CRO guidance here):
If the company cannot appoint an EEA Resident Director then it will be required to obtain a bond. Incorpro will obtain the bond on the company's behalf at a cost of €1,950. The bond is renewable every two years until the company appoints an EEA Resident Director or is granted a certificate from the CRO confirming the company has a real and continuous link with one or more economic activities that are in carried on in Ireland.
Our fee for the standard company incorporation package is €99 + VAT. Registration for Corporation Tax, Payroll Tax and Domestic VAT is included in this price, as is registration with the RBO.
With the increased workload registering a company with non-Irish residents, Incorpro have the following additional costs:
Also, there are optional extras that you may wish to avail of:
If you wish to understand more about setting up an Irish company as a non-resident and whether it is the right option, then you can book a 30 minute video consultation with a Chartered Accountant for €99 + VAT for a time that suits you.
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Effective June 11, 2023, directors of all Irish limited companies must supply their PPS numbers when submitting a number of CRO filing forms, such as the company's Annual …
