Starting a business in Ireland is an exciting venture, but navigating the process of company formation can feel overwhelming, especially for small business owners or single-person companies.

The first thing to understand is, do I really need to set up a Limited Company (LTD) or can I commence/continue as a sole trader? Advice from a professional before set-up will be the best investment you, as a businessperson will make.

Setting up a Limited company is relatively cheap and straight forward, particularly if you use a third party to set it up. However, this should not be done lightly as:

The ongoing professional fees, such as accountancy fees can be multiple of the costs of professional fees for a sole trader owing to the work involved.

If a Companies Registration Office (CRO) deadline is missed, the company losses its audit exemption, meaning a full professional audit is required, which can be very expensive even for any size of business.

Finally, if a business fails to take off an you simply wish to cease trading, the cessation of a Limited Company is complex and expensive.

Understanding the steps involved in setting up a company in Ireland ensures your business is legally compliant and positioned for growth. From registering with the Companies Registration Office (CRO) to fulfilling tax obligations with the Revenue Commissioners, each stage plays a critical role in establishing a strong foundation.

If you’re unsure where to start, speak to Tax Return Plus to guide you through company setup and ensure your business is set up correctly from day one.

Key takeaways

Choosing the right company type, name, and structure is critical for long-term success

Incorporation under the Companies Act 2014, registering with the CRO, appointing a company secretary, and maintaining a registered office are mandatory steps

Shareholders, share certificates, share capital, and the Register of Beneficial Owners must all be maintained correctly

Consider CRO fees, formation agent services, virtual offices, and ongoing corporate service costs when planning your company setup

Filing annual returns, meeting tax obligations, and maintaining statutory registers ensures your company remains in good standing

Trusted services like Tax Return Plus can guide you through company formation, tax registration, and ongoing compliance, helping you focus on growing your business

Understanding company formation in Ireland

Company formation in Ireland involves creating an Irish limited company, which is the most common structure for small businesses.

A limited company provides legal protection for its owners, separates personal and business liabilities, and allows for structured shareholding.

Legal framework for company registration

The legal framework for company formation is governed by the Companies Act 2014, which sets out the rules for incorporation, ongoing compliance, and reporting. Key requirements include:

Having a registered office

Appointing a company secretary

Preparing a memorandum and articles of association

Maintaining accurate records of share capital and beneficial ownership

Filing correctly with the CRO ensures your business receives its Certificate of Incorporation, marking the official start of your company’s life in Ireland.

Contact Tax Return Plus today to get expert advice on registering your company and meeting all compliance requirements.

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

1. Decide your company type and company name

Setting up a company in Ireland starts with choosing the right company type and name. Your business name must be unique and comply with Irish company law, ensuring it does not conflict with existing companies.

2. Preparing the necessary documents

Once decided, you will need to prepare key documents, including the memorandum and articles of association, which outline your company’s structure, rules, and shareholding arrangements.

3. Choosing a registered office and company secretary

Next, you must establish a registered office and appoint a company secretary. The registered office is the official address for your company, where legal notices and correspondence from the Companies Registration Office and Revenue Commissioners will be sent.

The company secretary plays a vital role in maintaining statutory records and ensuring ongoing compliance with Irish company law.

4. Filing with the Companies Registration Office (CRO)

Once your documents are ready, the next step is filing with the Companies Registration Office (CRO). This process officially incorporates your company and issues your Certificate of Incorporation, which confirms your business is legally recognised in Ireland.

The CRO will also collect the required fees and register your company details, including share capital and directors.

5. Registering for Taxes

After incorporation, registering for taxes with the Revenue Commissioners is essential. This includes corporation tax, VAT (if applicable), and other relevant tax obligations.

Understanding corporate tax rates and ensuring timely registration helps you avoid penalties and keeps your business compliant.

Contact Tax Return Plus to guide you through all tax registrations, advise on corporate tax rates, and help manage your ongoing compliance, so you can focus on running your business.

How much does it cost to set up a company in Ireland?

Setting up a company in Ireland comes with several costs that small business owners should plan for.

The Companies Registration Office lists all the associated fees for setting up a company in Ireland.

Mandatory CRO cost

New Company (electronic filing): €50

This is the only mandatory CRO fee for incorporating a standard Irish limited company (LTD).

Optional but common costs

These are not required by law but are typically part of the real-world cost of setting up a company:

Registered Office Address (if using a service provider): €150–€300 per year.

Many small business owners use a serviced address rather than their home

Company Secretary (if appointing a third party): €200–€400 per year

A single-director LTD must have an external company secretary unless there are two directors

Section 137 Bond (only required if no EEA-resident director): approx. €2,000 for 2 years

Only applies in specific situations

Virtual Office / Mail Handling (optional): €150–€250 per year

Often bundled with registered office services

Professional formation agent fees (optional)

If the business uses a formation agent or accountant to complete all paperwork. Typical agent fee: €250–€500

This usually includes preparation of the constitution, CRO filing, beneficial ownership filing, and statutory register setup

Banking and other setup costs

These are usually free, but some banks may require:

Shareholder/beneficial ownership documentation

Initial deposit (varies by bank)

No CRO fees apply for bank account opening.

Approximate cost estimate

Cost type	Estimated cost
Mandatory CRO Filing (A1)	€50
Registered Office (optional)	€150–€300
Company Secretary (if outsourced)	€200–€400
Formation Agent (optional)	€250–€500
Section 137 Bond (only if required)	€2,000–€2,500
Virtual Office (optional)	€150–€250

Most small Irish businesses do not need a Section 137 bond, which means that the estimated total cost of setting up a company in Ireland may be between €450–€1,250,
depending on whether you use a registered office service and a formation agent.

If a Section 137 Bond is required, the estimated cost is between €2,500–€3,000+.

Understanding the normal cost versus potential additional costs helps you budget effectively and avoid surprises during the setup process.

Tax Return Plus can provide a clear breakdown of all costs involved in company formation, helping you make informed decisions and keep your setup within budget.

Shareholders and beneficial ownership

In addition to initial setup fees, ongoing costs such as maintaining a registered office, paying annual CRO fees, and using corporate services should also be considered.

These costs ensure your company remains compliant with Irish company law and the Companies Act 2014.

For small business owners and single-person companies, using professional support can save time and reduce the risk of errors.

Let Tax Return Plus guide you through all these costs and services, ensuring your company stays compliant while you focus on growing your business.

Post-incorporation requirements

Understanding shareholders and beneficial ownership is a key part of company formation in Ireland.

Every Irish limited company must maintain a register of its shareholders and record their shareholdings through share certificates.

The share capital determines each shareholder’s stake in the business and can influence decisions and profit distribution.

Accurate record-keeping ensures compliance with the Companies Act 2014 and provides transparency for all parties involved.

Banking setup

In addition to shareholders, Irish company law requires companies to maintain a Register of Beneficial Owners. This register identifies individuals who ultimately own or control the company, even if they are not formally listed as shareholders.

The Register of Beneficial Owners must be kept up to date and made available to authorities upon request.

Maintaining this register is not just a legal requirement, it also promotes trust and accountability within your business.

If you’re unsure how to set up or manage your beneficial ownership register, Tax Return Plus can help ensure all records are accurate and compliant.

Operating as an Irish company

Certain obligations, such as the Section 137 Revenue Bond, may apply depending on your company’s structure and financial activities.

Section 137 governs transactions involving beneficial owners and requires careful documentation to meet compliance standards.

Understanding these rules early on can prevent complications later and keep your company in good standing with the Revenue Commissioners.

Contact our friendly team for support

Once your company is incorporated, staying on top of post-incorporation requirements is essential.

This includes filing your Annual Return with the Companies Registration Office, maintaining accurate statutory registers, and ensuring ongoing compliance with Irish company law and corporate tax obligations.

Regularly meeting these requirements not only keeps your company in good standing but also builds credibility with banks, investors, and clients.

Speak to our friendly team today to help you make a decision if setting up a company or sole trader is the best route for your business.

Guide to company formation in Ireland