🇮🇪 Annual Compliance — Ireland

Assuming the 12.5% rate covers all income

Fix: Only active trading income qualifies for 12.5%. Passive income (interest, rental, certain royalties) is taxed at 25%. Structure your revenue streams carefully and take professional advice on what qualifies as trading income in your specific case.

Not meeting the EEA-resident director requirement

Fix: At least one director must be resident in the European Economic Area. If all directors are based outside the EEA, you must obtain a Section 137 bond from an authorised insurer (costing approximately €2,000/year). Plan your board composition before incorporation to avoid delays.

Missing the Annual Return filing deadline

Fix: The first Annual Return (Form B1) is due within six months of incorporation, and subsequent returns are due annually on the company's Annual Return Date. Late filing results in a loss of the audit exemption for two years and potential strike-off. Set calendar reminders immediately after incorporation and consider appointing a company secretary or compliance firm to manage deadlines.

Choosing a DAC when an Ltd would suffice

Fix: Many founders default to a DAC because it sounds more substantial, but for most startups and SMEs, the Ltd is simpler, cheaper, and more flexible. Choose a DAC only if you need a defined objects clause (typically for regulated entities, SPVs, or joint ventures). Otherwise, the Ltd's single-document constitution and single-director option will save time and money.