Small Business Accounting & Start-Up Services Dublin

Company Formation in Ireland

Setting up a limited company in Ireland involves registering with the Companies Registration Office (CRO) and establishing the correct share structure, directorship, and constitution. McManus McCabe advises on the optimal structure for your business and manages the full formation process:

1. Advising on the appropriate company type (private company limited by shares is standard for SMEs)
2. Drafting the constitution (previously called the Memorandum and Articles of Association)
3. Registering the company with the CRO (Form A1)
4. Applying for PPS numbers for foreign directors where required
5. Registering with Revenue for corporation tax, employer PAYE, and VAT as required
6. Setting up the company bank account requirements

For start-ups, the decision whether to incorporate as a limited company or trade as a sole trader has significant tax and liability implications. McManus McCabe advises on the appropriate structure based on your projected income, business model, and risk profile.

Sole Trader vs Limited Company: Key Differences

Annual Compliance Package for Small Businesses

McManus McCabe offers fixed-fee annual compliance packages tailored to the size and structure of your business. These packages provide certainty on cost and ensure all compliance obligations are met on time.

Bookkeeping and Management Accounts

Accurate bookkeeping is the foundation of good financial management and tax compliance. McManus McCabe provides bookkeeping services for businesses that prefer to outsource this function entirely, and bookkeeping review and support for businesses that manage their own day-to-day records.

We work with all major Irish accounting packages including Xero, Sage, and QuickBooks, and provide cloud-based access to your accounts so you can view up-to-date financial information at any time. For businesses that require it, we prepare quarterly management accounts to help owner-managers track performance against plan and identify issues early.

Payroll Services

Irish payroll involves employer PAYE, PRSI, and USC obligations that must be reported to Revenue in real time under the PAYE Modernisation system. Each payroll run is a Revenue submission - errors are visible to Revenue immediately.

McManus McCabe provides end-to-end payroll processing including:

• Employee registration with Revenue (RPNs)
• Weekly, fortnightly, or monthly payroll calculation
• Revenue real-time reporting (RPN lookups, payroll submissions)
• Payslip preparation and distribution
• Monthly employer PAYE/PRSI/USC payment scheduling and P30 management
• Annual P60 preparation for employees
• Advice on benefits-in-kind, share options, and non-cash remuneration treatment

VAT Registration and Returns

VAT registration in Ireland is compulsory once your annual taxable turnover exceeds EUR40,000 (services) or EUR80,000 (goods). Many businesses benefit from registering before reaching the threshold to recover input VAT on start-up costs.

McManus McCabe manages VAT registration, bi-monthly VAT return preparation and filing, VIES and Intrastat reporting for businesses trading across the EU, and advises on the VAT treatment of specific transactions including reverse charge, intra-EU services, and import VAT.

Corporation Tax for Small Businesses

Irish trading companies pay corporation tax at 12.5% on trading profits - one of the lowest rates in the EU and a significant advantage for Irish SMEs. The CT1 return is due 9 months after the end of the accounting period and must be accompanied by iXBRL-tagged accounts.

McManus McCabe prepares and files CT1 returns for all company clients, advises on the close company surcharge (which applies where a company retains excessive passive income), and identifies available credits and reliefs including Research and Development Tax Credit, Employment and Investment Incentive (EII), and Accelerated Capital Allowances for energy-efficient equipment.

Start-Up Advisory

For businesses in their first 1-3 years, McManus McCabe provides dedicated start-up advisory services covering:

• Business model review and financial projections
• Tax-efficient remuneration planning from day one
• Funding support - Enterprise Ireland grants, SURE, BES, EII
• Start-Up Refund for Entrepreneurs (SURE) - tax refund scheme for entrepreneurs investing in their own company
• Revenue start-up registration and early compliance management
• Exit planning - Entrepreneur Relief planning from inception

Small Business Accounting FAQs

• Do I need an accountant for my small business in Ireland?

  There is no legal requirement to use a professional accountant for a sole trader business in Ireland, and you can file your own Form 11 income tax return via ROS. However, a qualified Chartered Accountant will ensure all available deductions are claimed, preliminary tax is correctly estimated, and VAT and payroll obligations are managed correctly. For limited companies, the CRO requires financial statements prepared in accordance with the Companies Act 2014 - these must be accompanied by a directors' report and are subject to specific disclosure requirements that most business owners are not familiar with.
• How much does an accountant cost for a small business in Ireland?

  Typical annual fees for a sole trader range from EUR800-EUR1,500; for a limited company from EUR1,500-EUR4,000. See our detailed guide: How Much Does a Small Business Accountant Cost in Ireland? for a full breakdown by service type and business structure.
• What is the 12.5% corporation tax rate in Ireland?

  The 12.5% corporation tax rate applies to the trading income of Irish resident companies. Non-trading income (such as rental income, passive investment income, and income not from active trading) is taxed at 25%. The Rate applies to the net taxable profit after all allowable deductions and reliefs. For the Pillar Two global minimum tax rules (15% minimum), companies with global revenues exceeding EUR750m per year are subject to top-up taxes - this does not apply to the vast majority of Irish SMEs.