European Parliament proposals could cut the cost of setting up a company to €1 and allow people to complete the process in just hours instead of days.

It costs €50 to set up a new company in the Republic and it can take two to five days to register it. In Austria it can take up to 10 days and cost €305 while the Italian authorities charge €2,000. In Germany it's €376 and takes six days. In the UK, the Republic's nearest trading partner, the costs run between €16 and €50 and it can take one to five days.

The European Parliament has passed proposals that could cut costs to as little as €1 and allow for new companies to be registered online in just a matter of hours.

Irish MEP Brian Hayes said procedures would be made easier and costs would be cut.

Central Bank research last year showed companies in the first five years of existence account for two-thirds of all new jobs created in the Republic.

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“Under new proposals passed by the European Parliament recently, it will soon be possible to set up a company for €1 and through online registration,” Mr Hayes said. “This is a very pro-business idea. It will allow people with good ideas to start a business within a couple of hours and at virtually no cost.

“Central Bank research from 2014 showed start-up companies in the first five years of existence account for two-thirds of all new jobs created in Ireland. This highlights how important this new European Parliament proposal could be for the creation of Irish jobs and growth opportunities.”