This article is for international business owners and CFOs deciding how to establish operations in Ireland.
If you're weighing whether to set up an Irish subsidiary or register a branch—and wondering how each affects your liability, taxes, and compliance obligations—this guide breaks down the legal differences, setup requirements, and which structure suits your specific business situation.
Key Takeaways
• Subsidiaries provide complete liability protection limiting parent company exposure to share capital investment, while branches expose parent company's global assets.
• Irish subsidiaries pay 12.5% corporate tax on trading income as standalone entities, while branch taxation involves complex parent company reporting.
• Establishing a subsidiary requires full CRO incorporation with EEA-resident director, while branches file Form B13 within one month of operations.
• Regulated activities like financial services typically require subsidiary structure as Central Bank authorization demands Irish legal entity establishment.
• Subsidiaries can own Irish intellectual property separately from parent companies, enabling strategic IP positioning across jurisdictions with transfer pricing considerations.
Laura Ryan is a practising Barrister at the Bar of Ireland. She graduated from the Honourable Society of King’s Inns in 2024, having previously qualified and practised as a Chartered Accountant in a big four accounting firm.
What's the main difference between setting up a branch versus a subsidiary in Ireland?
A subsidiary is a completely separate Irish company that you own and control, while a branch is just an extension of your existing foreign company operating in Ireland. This fundamental distinction affects everything from your liability protection to how you're taxed and the operational flexibility you'll have.
Will my parent company be protected from liability if I set up an Irish branch?
No, branches offer no liability protection because they're not separate legal entities. Any debts, legal claims, or obligations against your Irish branch become direct liabilities of your parent company, potentially exposing your global assets to claims arising from Irish operations.
How does the 12.5% Irish corporate tax rate apply to branches versus subsidiaries?
Irish subsidiaries pay the 12.5% rate on their trading income and file as standalone Irish resident companies. Branch taxation is more complex—your parent company reports branch income in its home jurisdiction while potentially owing Irish tax on branch profits, with the final treatment determined by double taxation treaties.
How long does it take to set up an Irish subsidiary?
The incorporation process typically takes 5-10 working days once you've met all requirements. You'll need to appoint at least one EEA-resident director (or purchase a Section 137 bond), designate a company secretary, establish an Irish registered office, and file Form A1 with constitutional documents through the Companies Registration Office.
Can my Irish subsidiary own intellectual property separately from my parent company?
Yes, Irish subsidiaries function as independent legal entities that can own intellectual property separately. This allows you to strategically position valuable assets within your corporate group, such as holding European IP rights in the subsidiary while the parent retains rights in other territories.
Do branches have to file their parent company's global accounts in Ireland?
Yes, branches must file annual returns containing their parent company accounts, meaning you're preparing and filing documents about your entire global business, not just Irish operations. This is significantly different from subsidiaries, which only file Irish financial statements for their standalone operations.
Which structure should I choose if I'm testing the Irish market before making a full commitment?
A branch makes sense when testing the Irish market before committing to a full subsidiary. Branches are also suitable for providing limited services to existing clients, operating short-term projects with defined end dates, or when your parent company needs to maintain tight operational control.
Do I need special authorization to operate financial services as a branch or subsidiary?
Financial services, insurance, and payment services require Central Bank authorization regardless of structure. However, these regulations typically require Irish legal entity establishment, effectively mandating subsidiary structure for regulated activities rather than allowing branch operations.
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