Brew business growth in Ireland with low taxes and top talent
Ireland emerges as a premier destination for international businesses. Its pro-business policies, low corporate tax rates (12.5% for trading income), and highly skilled workforce create a robust ecosystem for corporate growth. The nation’s digital infrastructure and EU membership provide unparalleled market access and operational efficiency.
Companies venturing into Ireland can choose between two primary paths for establishing their presence: traditional company registration or partnering with an Employer of Record (EOR). Each approach offers unique benefits, demanding careful consideration of your specific business objectives, scalability needs, and market entry timeline. This guide helps you choose the best way to expand your business into Ireland.
Key benefits of business expansion in Ireland
Registering a company in Ireland offers numerous strategic advantages that can significantly enhance a business’s growth and operational efficiency. Here’s how:
Low taxes: Ireland boasts a corporate tax rate of 12.5%, one of the lowest in the European Union.
Tax incentives: The country offers various tax breaks, such as a 30% Research & Development Tax Credit (this was 25% before January 1, 2024). Additionally, the Knowledge Development Box (KDB) allows a reduced tax rate of 6.25% on profits from your company’s intellectual property.
Expansion into new markets: Ireland’s EU membership provides seamless access to a vast European market, while its strategic location acts as a gateway to Europe, the Middle East, and North America, supported by excellent transport links.
Skilled workforce: Ireland boasts a young and highly educated workforce. In 2024 Q2, 56% of those aged 25-64 years had attained a third-level education, according to Ireland’s Central Statistics Office (CSO).
Ease of doing business: Ireland ranked fourth globally in the IMD Competitiveness Index 2024 because of its stable political climate, transparent regulatory framework, and supportive government agencies.
Government support: The Irish government offers grants and financial support for research and development activities, fostering innovation and technological advancement. Additionally, Ireland actively encourages foreign investment with attractive incentives, including funding for training and exporting.
Extensive infrastructure: Ireland’s top-notch infrastructure, especially in communication and transport, ensures smooth and reliable operations for businesses.
Clear regulatory guidelines: Ireland’s strong legal framework, bolstered by extensive tax treaties and a robust common law system, provides comprehensive protection for businesses and their intellectual property.
Now that you understand Ireland’s business advantages, it’s time to determine the best expansion strategy. Should you take the traditional route of company registration or opt for the flexibility of an EOR? Let’s compare both approaches.
Company registration vs. EOR: The smarter way to expand in Ireland?
When expanding your business into Ireland, you have two primary options. Here’s how standard registration compares to using an EOR:
Aspect | Standard registration | EOR |
Purpose | Sets up a permanent base for your business in Ireland, giving you full control. | Hire in Ireland quickly and easily, ideal for testing the market or short-term projects. |
Control | You’re in the driver’s seat: you control everything. | Less control, as the EOR handles the legal stuff, but you still manage your team’s daily work. |
Cost | Higher upfront costs and ongoing expenses. | Lower upfront costs, but the EOR’s fees increase as you hire more people. |
Compliance | You hold direct responsibility for compliance with Irish corporate laws, tax regulations, and employment standards. | Lower costs at the start, but the EOR’s fees grow as your team does. |
Setup time | Takes longer to set up, usually several weeks to months | Get started quickly, often within days. |
Scalability | More scalable for long-term growth. | Suitable for small-scale operations or initial market entry. |
An EOR simplifies your market expansion. It eliminates the need for an entity setup, compliance, and many administrative tasks related to payroll, onboarding and offboarding, allowing you to focus on your core business, and expand in Ireland.
How does an EOR accelerate market entry and hiring in Ireland?
When you partner with An EOR, it will hire employees in Ireland on your behalf. Adhering to employment laws is the EOR’s responsibility. This partnership gives your business many advantages, including:
- Streamlined setup: Without entity setup, you accelerate market entry and reduce administrative work.
- Payroll and tax management: EORs manage payroll, taxes, and social contributions, ensuring accurate, compliant, and timely payments in Ireland.
- Compliance with local labor laws: EORs ensure compliance with Ireland’s labor laws, reducing legal risks in contracts, benefits, and terminations.
- Cost savings: EORs cut costs by removing entity setup, handling admin tasks, and enabling efficient resource allocation.
- Workforce scalability: EORs let you scale your workforce easily, so you can adapt to market needs free of long-term commitments.
- Talent acquisition: EORs help you onboard talent and manage critical tasks like contracts.
- Risk Mitigation: EORs are legal employers for payroll and compliance. They have experts to ensure adherence to the latest labor and employment regulations, reducing your legal risks.
However, an EOR cannot legally represent a permanent establishment in Ireland. You may need to register a local entity if you need to set up a warehouse, physical office, or store. Certain financial services regulated by the Central Bank of Ireland (CBI) and Health Products Regulatory Authority (HPRA) (banking, insurance, payment services), healthcare services, pharmaceuticals) must also register their company and obtain licenses to operate in Ireland. Similarly, companies wishing to participate directly in Irish government tenders or public contracts usually require formal entity registration. The next section outlines how to complete this entity registration.
A step-by-step guide to registering a company in Ireland
Whether you choose the EOR route or the traditional path, we’ve got you covered. Here are the five main steps for registering a company in Ireland, in case you want to explore that option.
Step 1: Select company structure and name
Determine the legal structure that best suits your business needs. Standard options in Ireland include:
- Private company limited by shares (LTD): The most common type, offering limited liability to shareholders.
- Public limited company (PLC): Suitable for larger companies seeking to raise capital from the public.
- Sole trader: For individuals operating as a single business owner.
- Partnership: For two or more individuals running a business together.
Select a company name
Choose a unique name for your company and verify its availability using the Companies Registration Office (CRO) name search facility. The name should not be identical or too similar to existing companies.
Appoint directors and a CS
Appoint at least one director and a company secretary. While the director manages the company’s operations, the company secretary ensures compliance with legal obligations. It’s advisable to have at least one director who is an Irish resident.
Step 2: Prepare incorporation documents
To register your company in Ireland, you’ll need some essential documents. These include an application form (Form A1), a document outlining your company’s purpose and rules (Memorandum and Articles of Association), details about your company’s directors and secretary, and a statement that shows your company’s capital.
Step 3: File with the Companies Registration Office (CRO)
Submit your completed incorporation documents and the associated filing fee to the CRO. You can file online or by mail.
Step 4: Obtain your certificate of incorporation
Once approved, you’ll get a certificate stating that your company has been officially registered in Ireland.
Step 5: Post-registration requirements
After incorporation, you’ll need to:
- Obtain a tax registration number: Register with the Revenue Commissioners for tax purposes.
- Open a corporate account: Digital banks like Revolut or N26 offer streamlined account opening processes.
- Comply with ongoing obligations: Fulfill annual filing requirements and maintain proper financial records.
If traditional registration feels overwhelming, remember that an Employer of Record (EOR) provides a simpler alternative—reducing your administrative load, speeding up market entry, and offering predictable costs.
How much does it cost to register a company in Ireland?
Understanding the costs involved in company registration can help you decide if this is the right path for your expansion into Ireland.
1. Registration costs
- CRO fee: Charges a €50 fee for filing a new company registration application (Form A1), a mandatory cost for all new companies planning incorporation in Ireland.
2. State fees and share capital
- There is no statutory minimum share capital required to form a Private Company Limited by Shares (LTD) in Ireland. But some banks may impose their own minimum capital requirements when opening a business account.
- Stamp duty:1% rate applies to the transfer of shares where the consideration exceeds €1,000.
3. Legal services
Solicitor fees vary based on your company’s needs. It’s best to talk to a solicitor for an accurate estimate.
4. Annual maintenance costs
- Annual return filing: File your company’s annual return online with the CRO for a €20 fee.
- Registered office: You can find options ranging from around €200 to €400 per year, so you can choose one that fits your budget.
5. Accounting and taxes
- Accountant fees: Basic bookkeeping can range from €25-€50 per hour, while tax services can be €50-€150 per hour. Many accountants also offer fixed monthly or annual fees.
- Corporation tax: 12.5% on trading income and 25% on non-trading income.
An Employer of Record eliminates many of your entity setup costs. It also reduces the need for you to consult expensive legal or financial consultants and cuts the administrative costs of managing compliance internally.
Cost analysis: Standard company registration in Ireland vs. EOR
Cost category | Standard registration | EOR |
Setup | €50 fee plus legal fees (from €1,000) | No entity setup is required. |
Compliance | Ongoing legal and administrative costs for compliance with Irish laws | Included in the EOR service fee |
Accounting & taxes | Accountant fees (€1,000 – €5,000+ per year) <br> – Corporation tax (12.5% or 25%) | managing taxes is part of the EOR monthly fee. |
HR & payroll | Costs associated with setting up and managing payroll, HR software, and benefits administration | Bundled into the EOR fee |
Ongoing costs | Annual return filing fee (€20-€120) | Fees included in EOR services |
Choosing a dependable EOR like Multiplier doesn’t just reduce costs, it prevents expensive errors, fines, and compliance complications. It simplifies market entry, eliminating the need for a complex administrative setup, and allowing you more time to focus on your core business goals.
Streamline your Ireland expansion with Multiplier
Ireland offers a dynamic business environment, but navigating its company registration process and compliance requirements can be complex. Multiplier‘s EOR provides a seamless, cost-effective, and compliant way to hire talent in Ireland without establishing a local entity.
Here’s how we help
- Effortless compliance: We ensure your contracts and payroll adhere to Irish regulations.
- Streamlined HR: Our intuitive, all-in-one platform is recognized for simplifying onboarding, expense tracking, and time-off management.
- Local expertise: Our local experts have in-depth knowledge of Irish labor laws and tax codes and are available to support you 24/7.
- Talent acquisition: We help you attract and retain top Irish talent with competitive benefits packages.
- Expert support: Our team provides dedicated support and prioritizes data security.
Ready to simplify your Irish expansion? Request a demo today.
