January is always a time to plan for the year ahead; a chance to reflect, reset and make meaningful changes at the start of a new chapter. If you’re thinking, “This is the year I take control of my contracting career and financial future”, then moving to a Personal Limited Company could be the right next step for you.
This blog is designed to guide contractors through the key considerations, benefits and practical steps involved in setting up your own Personal Limited Company, helping you decide whether this structure is the right fit for your goals in 2026.
Is It Really Time to Set Up a Personal Limited Company?
Before making any major decisions, it’s important to pause and ask yourself a few key questions:
- Do your clients support the move?
Will your current clients support a transition from another structure (such as umbrella or sole trader) to a Personal Limited Company? - Does it align with your 2026 goals?
Are you aiming to build a multi-client portfolio, develop additional business activities outside of contracting, or employ others to support your growth? Your long-term vision should drive this decision. - Are you financially ready for the change?
Consider whether the shift in structure supports your income plans and long-term wealth strategy. Can you afford to build company reserves? If your monthly income exceeds your personal financial commitments, this may create opportunities to retain funds in the company for tax-efficient planning, reinvestment, or future business growth.
What Is a Personal Limited Company?
A Personal Limited Company is a limited company structure where you act as the 100% shareholder. The company is a separate legal entity, meaning its finances and liabilities are distinct from your personal finances, offering limited liability protection for directors and shareholders.
Key Benefits of Setting Up a Company
1. Greater Financial Control & Tax Efficiency
Directors of a Personal Limited Company have flexibility in how they pay themselves. You can choose to take a salary, leave funds in the company for the likes of pension contributions, or reinvest in business development. This flexibility can support tax-efficient planning, long-term financial stability and sustainable business growth.
2. Ability to Purchase Company Assets
If you are considering purchasing company assets such as property or a company vehicle, this is only possible through a Personal Limited Company structure. Asset purchases are not supported under umbrella company arrangements.
3. Professional Credibility and Branding
Operating through a limited company can enhance your professional image. It signals stability and credibility to clients, while also allowing you to build a distinct brand around your services and expertise.
4. Scalability — Hiring and Growth
As your business grows, a company structure allows you to take on employees or subcontractors, delegate tasks such as marketing and administration, and expand into new services or markets with confidence.
What You Should Consider Before You Start
Setting up a Personal Limited Company creates opportunity — but it also comes with additional responsibilities.
Incorporation and Tax Registration
- Cost: €249 + VAT for company setup, plus €20 (non-vatable) for the B1 submission
- Timeline: Certificate of incorporation is typically issued within 5–7 working days. Full setup, including tax registration, usually takes up to 6 weeks.
Choosing a Company Name
- Your company name must be unique and not match an existing registered company. We recommend incorporating using initials or references linked directly to your profession. If you’re unsure, our Personal Limited Company team can guide you.
Registered Office
- You will need a registered office address in Ireland. This can be your residential address if business premises are not available.
Business Bank Account
- A business bank account must be opened in your company’s name after your incorporation certificate is issued. Company and personal finances must always remain separate.
Director and Secretary Requirements
- You cannot act as both the sole director and company secretary. Your options include:
- Appointing another individual as company secretary while you remain sole director, or
- Appointing another director while you take on the dual role of director and company secretary.
Is It Right for You in 2026?
If 2026 feels like the year to take greater control of your career and finances, setting up a Personal Limited Company could be a natural next step. The right structure can provide flexibility, tax-efficient planning and a strong foundation for long-term business growth — but it’s essential to get it right from the beginning.
At Icon Accounting, we work closely with contractors and business owners to help them understand their options and make informed decisions that align with their goals. If you’re considering making the move this year, our team is here to support you at every stage from setup to ongoing management.
Got a Question?
Let us help
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Icon Accounting, Columba House, Airside,
Swords, Co. Dublin, Ireland, K67 R2Y9