Limited Partnership (LP) in Ireland

Limited Partnership · Formation from $110

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$110

Annual Fee

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy9/10

Remote Setup8/10

Banking4/10

Tax Efficiency8/10

Overall Score7/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

International investors and venture capital funds seeking a tax-transparent European vehicle.
Joint ventures where one party provides capital (limited partner) and the other provides expertise and management (general partner).
Entrepreneurs looking for a highly confidential business structure with minimal public reporting requirements.
Businesses that want to trade within the EU without being subject to Irish corporate tax (provided partners are non-resident and no income is sourced in Ireland).

Who Should Avoid This?

Scenarios where another structure may be better

Solo founders or freelancers who need a simple, single-member limited liability structure (an LTD is better).
E-commerce businesses that require a local Irish VAT number but have no physical presence in the country.
Founders who want to raise capital through equity crowdfunding or issuing shares (LPs do not have shares).
Businesses that need the entity to enter into contracts or hold property in its own name.

Advantages

+Tax transparency: The LP itself is not subject to corporate tax; profits pass through to partners who are taxed in their own jurisdictions.
+No minimum capital requirement: Partners can contribute as little as €1 to the partnership.
+High confidentiality: Limited partnerships are generally exempt from filing with the Register of Beneficial Ownership (RBO) and do not need to file public financial accounts if structured correctly.
+EU Access: Provides a reputable European Union vehicle for cross-border trade and investment.
+Limited liability for limited partners: Limited partners are protected from the partnership's debts beyond their capital contribution, provided they do not participate in management.
+Fast and inexpensive setup: Registration with the Companies Registration Office (CRO) is quick, and the state filing fee is exceptionally low (€2.50).

Disadvantages

-Unlimited liability for the General Partner: At least one general partner must bear unlimited personal liability for the debts and obligations of the firm.
-Not a separate legal entity: The LP cannot own property or enter into contracts in its own name; the general partner must do so on its behalf.
-Management restrictions: Limited partners cannot participate in the management of the business; doing so strips them of their limited liability protection.
-Banking difficulties: Opening a traditional Irish bank account for an LP with non-resident partners is extremely difficult due to strict AML regulations.
-Tax complexity for non-residents: While tax-transparent, partners must carefully manage their own tax residency to avoid unintended tax liabilities, and the LP cannot benefit from Ireland's double tax treaties.

Formation Steps

Choose a Partnership Name: Ensure the name is unique and complies with CRO guidelines. If the name differs from the partners' true names, register it as a Business Name (Form RBN1B).

Draft the Limited Partnership Agreement: Create a private agreement outlining the rights, duties, profit-sharing, and capital contributions of the general and limited partners.

Appoint the Partners: Designate at least one General Partner (unlimited liability, manages the business) and at least one Limited Partner (limited liability, passive investor).

Secure a Registered Office: Obtain a physical address in the Republic of Ireland to serve as the principal place of business.

Submit Form LP1 to the CRO: Complete the Application for Registration of a Limited Partnership, signed by all partners, and pay the €2.50 filing fee.

Obtain the Certificate of Registration: Receive the official certificate from the Companies Registration Office, confirming the LP's legal status.

Apply for a Tax Reference Number (TRN): If the LP will trade in Ireland or requires a VAT number, register with the Revenue Commissioners (requires a local presence or active business).

Open a Business Bank Account: Apply for a corporate account using digital fintech platforms (like Revolut or Wise) or a traditional Irish bank if local substance requirements are met.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
State filing fee (CRO Form LP1)	One-time	$3
Registered Office & Agent Service	Annual	$107
First year total		$110
Annual ongoing		$107

Real-World Examples

Typical use cases for this entity type

Private Equity Funds: Many international private equity and venture capital firms use Irish LPs to pool investments, as the tax-transparent nature allows investors to be taxed only in their home jurisdictions.
Family Wealth Management: High-net-worth families use LPs to manage assets, where the parents act as general partners (controlling the assets) and children are limited partners (benefiting from the assets with limited liability).
Cross-Border Joint Ventures: Two foreign companies form an Irish LP to collaborate on a European project, benefiting from Ireland's common law system and avoiding double taxation.

Common Mistakes

Pitfalls to avoid during setup and operations

Limited partners participating in daily management, inadvertently exposing themselves to unlimited personal liability.
Assuming the LP is a separate legal entity and trying to sign contracts in the name of the LP rather than the general partner.
Failing to realize that the General Partner has unlimited liability, and not using a corporate entity (like an LTD) as the General Partner to mitigate this risk.
Expecting to easily open a traditional Irish bank account without any local resident partners or physical substance in Ireland.
Neglecting to register a Business Name with the CRO if the LP operates under a name different from the partners' names.

Other entity types

Other formation options in Ireland

Private Company Limited by Shares (LTD)

Primary

Tax: 12.5%
Formation: $58

Designated Activity Company (DAC)

Tax: 12.5%
Formation: $54

Public Limited Company (PLC)

Tax: 12.5%
Formation: $55

Company Limited by Guarantee

Tax: 12.5%
Formation: $58

Unlimited Company (ULC)

Tax: 12.5%
Formation: $54

General Partnership

Tax: 0.0%
Formation: $22

Branch Office (External Company)

Tax: 12.5%
Formation: $58

Compare with Other Countries

Country / Type	Tax	Formation	Annual
🇮🇪 Limited Partnership (LP)(Limited Partnership)	0.0%	$110	$0

🇮🇪 vs 🇺🇸 United States 🇮🇪 vs 🇪🇪 Estonia 🇮🇪 vs 🇬🇧 United Kingdom 🇮🇪 vs 🇬🇪 Georgia All comparisons →

FAQ

Does an Irish LP pay corporate tax?

No, an Irish LP is tax-transparent. Profits and losses pass through to the partners, who report and pay taxes in their respective countries of tax residence.

Can a non-resident be a partner in an Irish LP?

Yes, both general and limited partners can be non-residents or foreign corporate entities. However, non-EEA general partners may need permission from the Minister for Justice if they intend to reside in Ireland.

Is an Irish LP a separate legal entity?

No, unlike a private limited company (LTD), an Irish LP does not have a separate legal personality. Contracts and assets are held in the name of the general partner(s).

Do I need to file annual financial statements?

Generally, no. Unless the LP is a 'qualifying partnership' (e.g., all general partners are limited companies), it is not required to file annual accounts with the CRO.

What happens if a limited partner gets involved in management?

If a limited partner takes part in the management of the partnership, they lose their limited liability protection and become jointly liable for all debts incurred during that period.

Do I need to register the beneficial owners of an Irish LP?

Currently, Irish Limited Partnerships are generally exempt from filing details with the central Register of Beneficial Ownership (RBO), offering a higher degree of privacy.

How much does it cost to register an Irish LP?

The official CRO filing fee is only €2.50. However, using a corporate service provider for the registered address and formation process typically costs between €100 and €400.

Can an Irish LP get a VAT number?

Yes, but obtaining an Irish VAT number requires demonstrating real economic substance in Ireland, such as local trading activities, a physical office, or local employees.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate

An Irish Limited Partnership (LP) is tax-transparent. The LP itself does not pay corporate tax; instead, corporate partners pay 12.5% on their share of trading income and 25% on passive income.

Personal Income Tax (Top rate: 40.0%)

From	To	Rate
$0	$44,000	20.0%
$44,001	No limit	40.0%

Individual partners are taxed on their share of LP profits at progressive rates up to 40%, plus the Universal Social Charge (USC) up to 8% and PRSI.

Capital Gains Tax

33.0%

The standard capital gains tax rate is 33%. A Revised Entrepreneur Relief may apply a reduced rate on qualifying business assets up to a €1.5 million lifetime limit.

VAT / GST

23.0%

Registration Threshold: EUR80,000

Non-established businesses supplying digital services to Irish consumers must register for VAT from the first sale, with no threshold, or use the EU OSS scheme.

Withholding Tax

Dividends25.0%

Royalties20.0%

Interest20.0%

Domestic exemptions and Ireland's extensive double tax treaty network often reduce withholding taxes on dividends, interest, and royalties to 0% for EU or treaty-resident companies.

Payroll & Social Security

Employer11.3%

Employee4.2%

PRSI rates are 11.25% for employers and 4.2% for employees, increasing to 11.40% and 4.35% respectively from October 2026. Employers must also contribute 1.5% under the new 2026 auto-enrolment pension scheme.

Other Taxes

Stamp Duty

Levied at 1% on transfers of shares, 1-2% on residential property, and 7.5% on non-residential property transfers.

Universal Social Charge (USC)

A progressive tax on individual income ranging from 0.5% to 8%, payable by employees and self-employed partners.

Incentives & Support

Knowledge Development Box (KDB)

A corporate tax relief that applies a lower rate to profits from qualifying patents and copyrighted software.

Effective tax rate of 6.25% on qualifying IP income.

Eligibility: Companies carrying out qualifying R&D in Ireland (applies to corporate partners of the LP).

R&D Tax Credit

A tax credit for qualifying research and development expenditure.

30% tax credit on qualifying R&D expenditure.

Eligibility: Must be carrying out qualifying R&D activities within the EEA.

Formation Requirements

Minimum Capital

No requirement

There is no minimum capital requirement for an Irish Limited Partnership. Partners can contribute as little as €1.

Local Director

Not Required

No local resident partner is required. Both General and Limited Partners can be non-residents or foreign entities.

Registered Office

Required

Virtual office allowed. $100 - $300 per year

Notarization Required

Power of Attorney (Remote)

Required

A Power of Attorney may be required if a corporate service provider is signing the formation documents on behalf of the partners.

Timeline

Standard: 5-10 business days days

Expedited: 1-3 business days days ($150)

Required Documents

1Form LP1 (Application for Registration)
2Limited Partnership Agreement (LPA)
3Certified Passport Copies of PartnersApostille needed
4Proof of Address for Partners (Utility Bill)
5Proof of Registered Office in Ireland

Compliance & Reporting

Annual Filings

Form 1 (Firm's Tax Return)

Penalty: Surcharge of 5% or 10% of the tax due, depending on the delay.

October 31 (or mid-November via ROS)

Annual Return (Form QP1) - Only for Qualifying Partnerships

Penalty: Late filing fee of €100 plus €3 per day (up to €1,200) and loss of audit exemption.

Within 6 months of the financial year-end

Audit Requirement

Not Required

Only applies to 'Qualifying Partnerships' exceeding two of: Turnover > €12m, Balance Sheet > €6m, Employees > 50.

Accounting Standard

Irish GAAP (FRS 102) or IFRS

Tax Return Deadline

October 31 (paper) or mid-November (online via ROS) of the following year.

VAT Filing Frequency

Bi-monthly (standard), but can be 4-monthly, 6-monthly, or annual depending on liability.

Data Protection

Subject to the EU GDPR and the Irish Data Protection Act 2018. Must maintain a data privacy policy if processing EU resident data.

Banking & Payments

Bank of Ireland

A leading traditional bank in Ireland. Requires significant local ties or an Irish resident partner to open an account.

Revolut Business

Remote-friendly

Highly popular digital bank in Ireland offering multi-currency accounts and easy remote setup for companies with EEA ties.

Wise

Remote-friendly

Excellent for international LPs needing to manage multiple currencies with low conversion fees.

Fire

Remote-friendly

An Irish fintech providing digital accounts with dual EUR and GBP IBANs, ideal for UK-Ireland cross-border trade.

Payment Gateways

Stripe, PayPal, Square, Paddle, Adyen

Currency

EUR

Multi-Currency: Supported

Account Opening

Opening a traditional bank account in Ireland for a non-resident LP can be challenging due to strict AML regulations, often requiring an Irish resident partner or a face-to-face meeting. However, digital fintech platforms like Revolut Business, Wise, and Fire offer more accessible, remote-friendly alternatives for international founders.

Practical Information

Timezone

UTC to UTC+1

Business Language

English

Legal System

Common law

Ease of Doing Business

#24

IP Protection

Ireland offers a robust intellectual property regime, including a Knowledge Development Box (KDB) that reduces corporate tax on qualifying IP income, and strong protections under EU and international frameworks.

Double Tax Treaties

75 countries

Notable treaties: United States, United Kingdom, Germany, France, Canada, Australia

Visa & Residency Options

Start-up Entrepreneur Programme (STEP)

Allows non-EEA founders with an innovative business proposal and at least €50,000 in funding to establish their startup and reside in Ireland.

Critical Skills Employment Permit

Aimed at highly skilled professionals in sectors with labor shortages, offering a fast track to permanent residency.