We recently wrote about registering a business in the Republic of Ireland.
Here, we’ll go into more detail about topics relating to banking, Revenue (the Revenue Commissioners) and tax that are essential for you to know if you are thinking about starting a business in the Republic of Ireland.
In order to operate fully in Ireland, you need more than just registration with the CRO, you need to make sure that you are fully registered for tax and VAT payments as well.
How do I get an Irish bank account?
In order to use the Revenue’s online service (ROS) and to be eligible for other aspects of tax, such as VAT refunds, you need an Irish bank account.
You won’t be able to do everything that you need to do with your home bank account.
Thankfully, Irish banks are very relaxed about non-residents setting up accounts, particularly if you are from another EU country.
1.Correspondence and documents
Most of the process for setting up an Irish bank account can be handled via correspondence.
You can get an application form from a local branch of the Irish bank that you want an account with, or the bank can send you a form directly. You’ll just need to fill in the form and then send it back along with a copy of a form of ID and proof of your address.
For the ID, anything like a passport or a driving license will suffice, and a copy of a recent utility bill will provide proof of your address.
It is important to note that if you are sending copies of the ID in the post, they will need to be approved by someone like a chartered accountant, a solicitor, or an embassy official. If in doubt, ask the embassy or the bank who they would recommend. The person that approves the document will need to sign it, print their name in clear capitals, and provide details of their current employment and how to contact them.
Whilst most of the application process can be carried out through correspondence, it is still somewhat likely that the bank will ask to meet you in person before opening the account. If they ask this, you might just have to make the most of it and book a short break to Ireland around the time they want to meet!
2.Business bank accounts
Several Irish banks provide excellent offers along with their business accounts, so it’s worth doing your research before you choose which bank to apply to.
The three biggest and best-established banks in the country are:
All of these offer competitive business accounts.
If you’re just starting up your company, then you should look into the Bank of Ireland’s start-up account option and AIB’s equivalent offer. The Bank of Ireland offers perks such as a free custom-built website and access to a network of resources and other support to get you off the ground. At AIB, there is option to a similar support network, as well as start-up loans which might be just what you need to make your business idea possible.
Take those suggestions as a starting point, and do your research to work out which bank offers you the best deal for your business.
Registering with the ROS
The Revenue Commissioners, known more simply as Revenue, is the Irish tax office that you’ll need to be registered with if you want to operate a business in the Republic of Ireland. Once the CRO has confirmed your company number (see here for more information), you’ll be able to use it to register with Revenue.
The easiest way to use Revenue’s services is to use the ROS - their online services. To use this, you need an Irish bank account, which is why we’ve spent the time going through how to open one.
Once you’re registered with the ROS, you’ll be able to manage all of your tax payments online, which will make your life a lot easier if you’re not a resident.
Registering for VAT
Registering for VAT in the Republic of Ireland can be tricky, but it needs to be done if your company is registered there.
Having an Irish bank account is essential if you want to be able to receive VAT refunds, and it’s also a sign to Revenue that your business has substance in the country.
The registration process is particularly taxing (pardon the pun) for non-residents, as it is possible that the government will be fairly rigorous with their identification and verification process. The important thing for you is to make sure you read everything that is sent to you carefully and correctly supply all of the information that is required. A mistake in the registration process can turn the whole thing into a very lengthy process.
Next Steps
For more information on VAT in Ireland, I recommend going to the government site before anything else. In general, the process for setting up a company, opening a bank account and registering for tax is made to be accessible for people from other EU countries, so with this information in mind, you should be able to navigate the process without a problem.
published under Tax and Legislation Guides
