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What is Nace Code and Why It’s Important for Your Irish Ltd

A lot of things are required for the proper operation of your business in Ireland, starting with the NACE and IPN to EORI and VAT. The NACE code is an integral component that is included in the list of essential documentation for company registration in Ireland. However, despite its criticality many business owners still face certain difficulties in understanding what is NACE. Those obstacles include understanding which category their business falls into, and registration misunderstandings.

What is a NACE Code in Ireland

NACE code is a special number assigned to your business according to its economic activity. It stands for Nomenclature of Economic Activities, so it’s crucial to ensure that the general nature of the company’s activity coincides with the code’s information. The full list of NACE codes can be found on the CRO portal by the link.

How to Read a NACE Code

In Ireland, reading and interpreting NACE codes follows the general European NACE classification system. The sections are divided into different categories of human activity where each is responsible for a certain area of activity, for example in section A we have activities associated with Agriculture, Forestry, and Fishing. Let’s see the hierarchy levels:

Section: Denoted by a single letter (e.g., A, B, C), representing broad sectors of the economy.

Division: Two-digit number (e.g., 01, 02, 10), representing a specific sector within the broader section.

Group: Three-digit number (e.g., 011, 012, 101), representing a more specific segment within the division.

Class: Four-digit number (e.g., 0111, 0112, 1011), representing the most specific economic activity within the group.

Why Your Irish Ltd Needs a NACE Code

When the startup, company, or venture is registered, you as an owner have to submit the NACE code in A1 form to the Company Registration Office. If the details have been submitted correctly the confirmation from the CRO will be received shortly.

Do I Need to Change a NACE Code If I Buy a Ready-Made Company

So do you have to change a NACE code when you buy a ready-made company? The answer to that question is pretty simple. There is no need to change the NACE code unless you want to change the fields of the company’s activity that were established by the previous owner. Therefore, if you buy a marketing agency, and you want to continue to provide marketing services, there is no need to change the previous NACE code. Therefore, you have legal rights to keep the previous documentation.

Wrapping UP

Despite its simplicity, the choice of the NACE code hides a lot of pitfalls, that can remain invisible for the new entrepreneurs. However, if you want to register your company flawlessly, and choose the NACE code without any effort, reach out to Chern & Co and our professionals would be happy to assist you.

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