Wondering, can I set up a company in Ireland as a non-resident? Ireland is a popular choice for entrepreneurs looking to establish a company within the EU. With a corporate tax rate of 12.5% and a business-friendly environment, it attracts non-residents seeking expansion opportunities.
However, factors like legal requirements, tax obligations, and local regulations should be carefully considered before setting up a company in Ireland from abroad.
In this blog, we will help you learn legal steps, tax requirements, and how to start your business hassle-free.
Let’s start!
Can I Set Up a Company in Ireland As a Non-Resident?
Ireland is a preferred location for non-residents looking to establish a business within the EU. With a corporate tax rate of 12.5% and a favourable regulatory environment, it offers attractive opportunities.
However, understanding legal procedures is crucial before proceeding.
Registering a Company with the CRO
The Companies Registration Office (CRO) requires all company directors to provide a PPS Number. If a director does not have an Irish PPS Number, they must apply for a Verified Identity Number (VIN).
This involves submitting Form VIF, which must be verified and signed by a Notary Public.
Corporate Tax Residence
Irish-registered companies are typically considered tax residents in Ireland unless they qualify for tax residency in another country under a Double Taxation Treaty.
If a company is centrally managed and controlled from another jurisdiction, it may be deemed a tax resident there.
Irish VAT Registration
Businesses can apply for either Domestic VAT Registration or Intra-EU VAT Registration. To qualify for Intra-EU VAT, the company must provide evidence of trade within Ireland.
This includes having a physical presence where business decisions are made.
Salaries for Non-Resident Directors
Salary payments to proprietary directors (who control over 15% of share capital) must be taxed at source under Irish tax regulations. PAYE Exclusion Orders are generally not granted to non-resident directors.
However, they may be able to request a tax refund after the financial year ends by filing an Irish Income Tax Return.
Dividend Tax for Non-Residents
Dividend Withholding Tax (DWT) of 25% applies to distributions from Irish companies. However, non-residents who meet specific criteria may qualify for an exemption by submitting the necessary documentation.
Register of Beneficial Ownership (RBO)
Beneficial owners with at least a 25% stake in an Irish company must register with the Register of Beneficial Owners (RBO).
If they do not have an Irish PPS Number, they must obtain a Verified Identity Number and submit Form VIF to verify their identity through a Notary Public.
Requirement to Have an EEA Resident Director
Irish companies must have at least one director who is a resident of the European Economic Area (EEA).
If this is not possible, the company must purchase a two-year Section 137 Bond as an alternative. This bond ensures financial security for compliance with Irish regulations.
Conclusion
So now your question “can I set up a company in Ireland as a non-resident?” has a clear answer! Yes, you can. Setting up a company in Ireland as a non-resident is entirely possible, but it requires careful consideration of legal, tax, and compliance obligations.
From registering with the CRO and obtaining a Verified Identity Number to meeting VAT requirements and appointing an EEA resident director, each step plays a crucial role in ensuring smooth business operations. Additionally, understanding tax residency, salary obligations, and dividend tax is essential for financial compliance.
If you’re looking for expert guidance on company formation, tax planning, or compliance in Ireland, Peak Accounting is here to help. Contact us today to simplify the process and ensure your business meets all legal requirements hassle-free.
FAQs
Can a non-resident establish a company in Ireland?
Yes, non-residents can establish a company in Ireland. However, certain requirements must be met, such as appointing at least one director who is a resident of the European Economic Area (EEA) or obtaining a Section 137 Bond as an alternative.
What taxes will my Irish company be subject to?
Irish companies are subject to a corporate tax rate of 12.5% on trading income. Additionally, depending on your business activities, you may need to register for Value Added Tax (VAT) and comply with employer obligations if you have employees.
Is it mandatory to have an EEA-resident director?
While it’s standard to have at least one EEA-resident director, non-resident companies can instead obtain a Section 137 Bond, which acts as insurance to cover any potential penalties for non-compliance with the Companies Act.
How can I open a business bank account in Ireland as a non-resident?
Opening a business bank account in Ireland as a non-resident can be challenging due to strict anti-money laundering regulations. Partnering with a local firm like Peak Accounting can facilitate this process through established banking relationships.
How can Peak Accounting assist non-residents in setting up an Irish company?
At Peak Accounting, we specialise in assisting non-residents with company formation in Ireland. Our services include handling legal requirements, providing a registered office address, and offering ongoing compliance support to ensure your business operates smoothly.
How quickly can Peak Accounting help me establish my Irish company?
With our efficient processes and expertise, Peak Accounting can typically have your Irish company registered within a few working days, assuming all necessary documentation is in order.
