Do I Need a Local Entity to Hire in Ireland?

In Ireland, a "local entity" refers to a recognized employing presence, such as a subsidiary or branch office, that can legally act as an employer. This setup allows you (or a provider acting on your behalf) to manage payroll and comply with local employment laws.

Without establishing a local entity, you typically can't register as an employer, manage mandatory payroll processes, or issue compliant employment contracts. An alternative is to use an Employer of Record (EOR), which can handle these responsibilities on your behalf.

What is Required to Employ Someone in Ireland?

• Local employing entity required to directly employ? Yes (you need a local entity for direct employment)
• Payroll registration required? Yes (register with the Revenue Commissioners)
• Withholding/tax remittance required? Yes (employers must withhold PAYE and USC)
• Social contributions required? Yes (employer must pay PRSI contributions)
• Local employment agreement required? Yes (written contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory leave, pension contributions, etc.)
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements)

Best Options If You're Hiring in Ireland

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about misclassification risks.

While hiring contractors doesn't require a local entity, Ireland has strict regulations regarding employment classification. If the contractor's work resembles that of an employee, you might face legal challenges.

• Ensure the contractor operates independently and isn't integrated into your business.
• Be mindful of how much control you exert over their work.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to establish an entity in Ireland, depending on the type of entity and registration processes.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €200–€600 per month ($220–$660)
• Payroll provider: Estimated €25–€75 per employee per month ($27–$82)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated €1,500–€3,500 per year ($1,650–$3,850)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Ireland

Hiring in Ireland can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Ireland quickly without establishing a local entity, eliminating incorporation costs and ongoing administration.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.