A clear-eyed comparison for independent contractors in Ireland

When you land your first big pharma contract, one of the first financial questions you'll face is:
Should I operate as a sole trader or set up a limited company?

There’s no one-size-fits-all answer — but if you’re working with multinational pharma clients, the structure you choose affects your tax, legal protection, and long-term strategy in ways you might not expect.

Let’s walk through the key considerations.

1. 📦 Setup: What’s Actually Involved?

Sole Trader:

• Register with Revenue as self-employed (ROS).

• Simple to start — minimal paperwork.

• You operate as you — no separate legal entity.

Limited Company:

• Register with the Companies Registration Office (CRO).

• Appoint a director (likely you), issue shares, and open a company bank account.

• The company is a separate legal and tax entity.

🔗 Want a full checklist? Download our [Contractor Setup Guide].

2. 💰 Tax: How Much Will You Pay?

Sole Trader:

• You pay Income Tax, PRSI, and USC on all profits.

• Top rates can hit 52% once you cross €36,800 (single person).

Limited Company:

• The company pays 12.5% Corporation Tax on profits.

• You decide when and how to take money out — via salary or dividends.

• With planning, effective tax rates can be much lower.

Example:
A contractor earning €120,000 could save €7,000–€12,000 per year via strategic company structuring.

✅ This is where our [Strategic Tax Review] comes in — not just compliance, but smart planning.

3. 🛡️ Liability: Who’s On the Hook?

Sole Trader:

• No legal separation — you’re personally liable for business debts and legal claims.

Limited Company:

• The company holds contracts, invoices clients, and bears liability.

• You’re protected — unless you’ve given personal guarantees or acted recklessly.

For pharma contractors working in regulated environments or technical risk zones, this can be a major advantage.

4. 📈 Long-Term Planning: What If You Grow?

Your business might be just you today — but what about 3 years from now?

• Will you bring on a subcontractor?

• Want to sell or transfer your business?

• Need to build up retained earnings for time off?

Only a company structure gives you this kind of flexibility.

We work with many contractors who began as sole traders and later needed to restructure — often at unnecessary cost and complexity.

5. 🤝 What Do MNC Clients Prefer?

This one’s often overlooked:
Some multinational companies will only contract with limited companies — not individuals.

Why?
It protects them from perceived employer obligations (PAYE risk) and streamlines procurement.

We’ve seen contracts fall through when a contractor wasn’t set up correctly.

Our Take: The Bottom Line

Next Step: Make the Right Move from Day One

We help pharma engineers and technical contractors set up the right way — not just to tick boxes, but to build real financial stability.

📞 Book a free onboarding call
We’ll walk through your current setup, future plans, and whether a company makes sense — and if it does, we’ll handle everything.

👉 Or dive deeper in our [Ultimate Guide to Financial Strategy for Pharma Contractors] — Section 1 breaks this down further.