A company is required to have an Irish legal entity established in order to process a payroll in Ireland.

Company

In order to set up as a company, the client must first register with the CRO and receive a CRO number. For multinationals, registering as a Limited Company with the Companies Registration Office (CRO) typically takes 2-4 weeks.

If the client uses a tax agent, then the agent must register with Office of the Revenue Commissioners (Revenue) online through Revenue Online Services (ROS). If no tax agent will be used, then the client must register through mail using Form TR2 for Irish resident companies or Form TR2 (FT) for foreign companies; Revenue will then send the client instructions to complete registration using ROS.

Revenue will provide the client with a Tax Reference Number (TRN), which it will use when trading and filing tax returns. Tax filings and payments must be done using ROS.

Setting up an in-country bank account is not necessary as it is not mandatory to make payments to employees from an in-country bank account.

Sole trader

In order to set up as a sole trader, the client must first register for a Personal Public Service (PPS) number by going in person to the nearest PPS Number Allocation Centre (in Ireland only). It is also possible to register for the PPS number from overseas by submitting a general enquiry through this link.

The client then registers with Ireland’s revenue department and pays all of taxes using their personal PPS number. This link can be used to register. Then, all payments and returns can be filed on myAccount.

If the client wants to use a business name rather than their own name or surname, then they can register with the Companies Registration Office (CRO) using Form RBN1.

Trust or partnership

In order to set up as a partnership, the client must first register for PPS number by going in person to the nearest PPS Number Allocation Centre (in Ireland only). It is also possible to register for the PPS number from overseas by submitting a general enquiry through this link.

If the client uses a tax agent, then the agent must register with Revenue online using this link. If no tax agent will be used, then the client must register through mail using this form; Revenue will then send the client instructions to complete registration using Revenue Online Services (ROS).

Revenue will provide the client with a TRN, which it will use when trading and filing tax returns. Tax filings and payments must be done using ROS.

If the client wants to use a business name rather than their personal names, then they can register with the CRO using Form RBN1A.

Employee considerations

New employees in Ireland require a PPS number in order to receive credits for their income tax and social security obligations. If the employer must process payroll for the employee before a PPS number is obtained, he or she will be taxed 40% on all earnings until the tax credits are established.