How to Start a Business in Ireland from the UK

Interested in setting up a company in Ireland? It’s a popular and attractive location for UK entrepreneurs, for a number of reasons. These include a low corporate tax rate, access to the European market and a skilled, well-educated workforce.

Here, we’ll run through everything you need to know about starting a business in Ireland from the UK. This includes info about the business landscape in Ireland, how to register your new company and the different legal business structures you can choose from. Plus, a helpful step-by-step guide to getting your new company off the ground.

We’ll also show you a smart way to manage your Irish company’s finances, using Wise Business - the ideal solution for international businesses.

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Starting a business in Ireland from the UK

Ireland has a stable, fast-growing and thriving economy, backed by pro-business policies and boasting a competitive business environment. This is why it’s home to a number of the world’s leading companies, including over 1,000 multinational businesses in the fields of finance, tech, social media and pharmaceuticals. In fact, a survey by The World Bank found that Ireland was the 24th easiest place to do business.¹

The country offers a trading gateway into the EU. For UK-based businesses navigating foreign exchange rate risks and customs challenges when trading with the EU, this makes Ireland a very attractive prospect indeed.

The main industries which contribute the most to the Irish economy include:²

• Agriculture
• Textiles
• Chemicals
• Electronics
• Banking and finance
• Tourism

Company house Ireland

Your first port of call when starting a business in Ireland will be the Companies Registration Office (CRO). This is the Irish equivalent of the UK’s Companies House.

The CRO is involved in the incorporation of companies and the maintenance of the Ireland company register. This is also where businesses will file documents, such as annual returns and accounts, and changes of company officers.

If you’re a small business, you might also find it useful to look up the Local Enterprise Office (LEO). The LEO acts as a gateway to government and non-government support to help small businesses develop.

Business for sale in Ireland

Before you start the process of setting up a new Irish business from scratch, there’s another option to consider. Buying an existing business could provide you with a route into the Irish market, with the benefit of taking over an established organisation. This may include everything from premises and staff to brand names and a credible market reputation.

You’ll need to do quite a lot of research if this is an option you’re interested in. This includes gathering and analysing information on the industry, target customers, regulatory and legal concerns and of course, opportunities.

You can find Irish businesses to buy through a number of routes. Listing websites are a good place to start, but you may want to engage the services of a specialist broker or agent. They can also help you navigate the legal requirements of purchasing a business in Ireland. The Local Enterprise Office (LEO) may also be able to offer assistance in buying a new company.

For the acquisition process itself, you’ll need a business broker to help you negotiate the purchase agreement and conduct due diligence.

You’ll also need to think about how you’ll cover initial payments, such as broker fees for example. Consider using Wise Business, which offers a convenient, secure and low-cost way to send money between the UK and EU.

Get started with Wise Business 🚀

Ireland company register

If you’re setting up a company from scratch, you’ll need to register it at the Companies Registration Office (CRO). You must do this within a month of adopting your business name.

You can either register online, or download and complete a paper form. There’s a small registration fee of between €20-€40 to pay depending which registration method you choose.³ Once registered, you’ll receive a Certificate of Registration to be prominently displayed at your business premises.

Before you can do this though, you’ll need to choose a legal structure for your business. Here are some of the most commonly used business structures in Ireland, which we’ll cover in more detail next:⁴

• Limited company- including Private Company Limited by Shares (LTD), Designated Activity Company (DAC - limited by share), Designated Activity Company Limited by Guarantee (DAC - limited by guarantee), Company Limited by Guarantee (CLG) and Public Limited Company (PLC).
• Single member company
• Unlimited company

Limited company⁴

One of the most common legal structures used to open a business in Ireland is a limited company. This is an organisation where the shares in the business are owned by shareholders. The company is usually a separate legal entity, which means that those that run it will have limited or no liability. All limited companies need to pay corporation tax in Ireland.

But there are a few different types of limited company to choose from in Ireland, which we’ll look at next.

Private Company Limited by Shares (LTD)⁴

A LTD company can undertake any kind of activity and doesn’t have stated objects. If the company is wound up, liability is limited to the amount of unpaid debit on the shares each shareholder has. Only the actual company can be sued for its debts and obligations.

A Private Company Limited by Shares can have a single director.

Designated Activity Company (DAC - limited by share)⁴

A Designated Activity Company is a relatively new business type in Ireland. It was introduced for businesses with a specific or sole purpose.

A DAC (limited by shares) needs to have at least two directors. If the company should go into administration, liability for shareholders is limited to the amount unpaid on any shares they hold.

A DAC needs to have a memorandum and articles of association.

Designated Activity Company Limited by Guarantee (DAC - limited by guarantee)⁴

The second type of DAC is one limited by guarantee.

When a DAC is limited by guarantee, its members have liability in two ways. The first is liability for the amount unpaid on the shares they hold, while the second is the amount they have contributed to the assets of the business - both apply if the business is wound up.

Like the other type of DAC, a DAC Limited by Guarantee needs to have a memorandum and articles of association.

Company Limited by Guarantee (CLG)⁴

This kind of limited company doesn’t have a share capital, so members aren’t required to buy shares in the company. For this reason, this business type is often used by professional bodies, social enterprises and charities.

Within a CLG, members' liability is limited to the amount they contribute to the assets of the company, in the case that it is wound up.

Public Limited Company (PLC)⁴

A PLC is usually set up for businesses which wish to be publicly listed on the Stock Exchange, so that shares can be offered out to the general public. Liability for shareholders is limited to the amount unpaid on any shares held.

Stocks in PLCs can be bought and sold freely. However, the nominal value of the company’s share capital must not be less than €25,000, and at least 25% of this must be fully paid up before the business can begin trading.

Single member company⁴

Not to be confused with a sole tradership, a single member company in Ireland is incorporated with just one member. However, it must have at least two directors, plus a secretary. Single member companies need to prepare financial statements, reports and returns, but don’t need to hold an AGM.

Unlimited company⁴

In Irish unlimited companies, there’s no limit to liability for members. This kind of company can be either public or private.

Other types of Irish entities

There are a handful of other business structures available in Ireland, including the following:⁴

• Undertakings for Collective Investment in Transferable Securities (UCITS) - public limited companies formed under specific EU regulations, with the purpose of collective investment in transferable securities of capital raised from the public.
• European Economic Interest Groupings (EEIG) - businesses which facilitate the development of economic activities of its members, particularly in relation to cross-border commerce within the EU.
• Societas Europaea (SE) - European public limited liability companies, which have members from different EU Member States.
• Cross Border Merger- companies which have merged with a company from another EEA State to form a new enterprise.

Setting up a company in Ireland from UK - Step-by-step

To make it just a little easier to get your new business off the ground, here’s a step-by-step look at the process of starting a company in Ireland:

1. Conduct market research, develop a business plan and test out your business idea
2. Identify the key requirements for your new business, from location and premises to staff numbers and initial overhead costs
3. Choose a legal structure
4. Register your business name with the Companies Registration Office (CRO)
5. Register with your local Revenue office
6. Research and understand your other statutory obligations, including planning permission, health and safety, trading licences and insurance
7. Set up a system for keeping business records
8. Start the process of setting up your new business

Manage your Irish company's finances with Wise Business

Right now, you’re focusing on the legal aspects of setting up your new business in Ireland. But it’s also crucial to consider how you’ll manage your finances in a country with a different currency. And if you’re expanding to Ireland from the UK, how you’ll deal with cross-border payments. Luckily, there’s an ideal solution available.

Open a Wise Business account and you can manage your company’s finances between the UK and Ireland. You’ll be able to pay suppliers and staff in euros and British pounds, as well as receiving payments in multiple currencies.

You can even automate payments using the powerful Wise API to save even more time. See how it works here in our case study

There are even Wise cards to cover business expenses, letting you and your team spend like locals in 150+ countries across the EU and beyond.

Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

This is the rate that banks use to buy and sell currency, and is widely considered the fairest rate you can get. When banks carry out currency conversions on behalf of customers, they usually add a mark-up or margin to the exchange rate. This makes it more expensive for your business, as less of your money reaches your recipient.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Get started with Wise Business 🚀

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And that’s it - your complete guide on how to start a business in Ireland. We’ve covered all the key aspects, including how to register your company and an overview of legal structures. This should act as a solid starting point as you embark upon the exciting process of starting a new company or expanding your business to Ireland. Good luck!

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Sources used for this article:

1. HSBC - International Business Guides - Ireland
2. Lloyds Bank - Ireland: Economic and Political Overview
3. Companies Registration Office - Business Name Registration
4. Companies Registration Office - Company Registration
5. Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Sources checked on 11-12-2023.