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Company Limited by Guarantee (CLG)Digital Products Seller

Company Limited by Guarantee in Ireland — Digital Products Seller Formation Guide

Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.

Last verified: June 13, 2026

Corporate Tax

12.5%

State Tax

0.0%

Formation Cost

$58

Annual Fee

$23

Forming a Company Limited by Guarantee in Ireland as a Digital Products Seller means a total tax burden of 12.5% and an official formation cost of $58. There is no minimum capital requirement. Standard formation takes 5-10 business days, or 3-5 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$455

Ongoing (per year)

$422

Detailed cost calculator →

Why Company Limited by Guarantee for Digital Products Seller?

Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.

Ideal for

  • E-book authors
  • Online course creators
  • Software and SaaS developers
  • Digital template designers

Challenges to watch

  • Managing global VAT and sales tax compliance
  • High chargeback rates for digital goods
  • Intellectual property protection across borders

Key decision criteria

  • Access to Stripe, PayPal, and other major payment gateways
  • Tax treaties to avoid double taxation on royalties
  • Ease of remote company management and banking

Company Limited by Guarantee formation requirements

Minimum capital

None

Standard timeline

5-10 business days

Expedited timeline

3-5 business days

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

At least one director must be resident in the European Economic Area (EEA). If neither director is an EEA resident, the company must secure a Section 137 Non-Resident Director Bond (costing approx. €1,500-€2,000 for two years).

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $60,000 revenue)

Gross Revenue$60,000
Corporate Tax-$7,500
Formation Cost-$58
Annual Fee-$23
Net Profit$52,419

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 23%. Registration threshold: 80,000 EUR. 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. The domestic threshold is €80,000 for goods and €40,000 for services.

Banking & payments for Digital Products Seller

Opening a traditional bank account in Ireland as a non-resident director can be challenging and often requires an in-person meeting or extensive documentation. However, digital banking platforms and fintechs like Revolut Business, Wise, or Fire offer a much smoother, fully remote onboarding process for Irish companies with non-resident founders.

Supported payment gateways

StripePayPalSquarePaddleAdyenBraintree

Remote-friendly accounts

  • Revolut Business

    Highly popular among Irish startups for its multi-currency accounts, virtual cards, and fully remote onboarding process.

  • Wise Business

    Excellent for international transactions and holding multiple currencies. Easy remote setup for Irish companies.

  • Fire

    An Irish fintech providing digital accounts with EUR and GBP IBANs, ideal for businesses operating across the UK and Ireland.

Ireland incentives & advantages

Charitable Tax Exemption (CHY Status)

0% corporate tax rate on income applied to charitable purposes.

Company Limited by Guarantee formation steps

1

Choose a unique company name that ends with 'Company Limited by Guarantee' or 'CLG' (or the Irish equivalent 'CTR').

2

Draft the company's Constitution, which must include a Memorandum of Association detailing the specific non-profit objects, and Articles of Association.

3

Appoint a minimum of two directors and a company secretary. The secretary can be one of the directors.

4

Secure a registered office address located physically within the Republic of Ireland.

5

Submit Form A1 along with the Constitution to the Companies Registration Office (CRO) and pay the €50 state filing fee.

6

Register the new CLG with Revenue for Corporation Tax and, if applicable, apply for Charitable Tax Exemption (CHY status) via the Charities Regulator.

7

Open a corporate bank account in Ireland or through a remote-friendly European fintech platform like Revolut Business or Fire.

8

File the company's details with the Register of Beneficial Ownership (RBO) within 5 months of incorporation.

Digital Products Seller FAQ

Do I need to charge VAT on digital products?

Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.

Which country is best for a digital product business?

The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.

Can I run this business as a digital nomad?

Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.

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