Starting a Business in Ireland

If you are thinking of setting up a business there are a number of things you will need to consider. Different supports and regulations apply, depending on your particular situation. You may be employed, unemployed or someone who is coming from outside Ireland to set up a business. This page highlights some of the important information you need to know with links to relevant topics. 

Business planning

The National Enterprise Hub is a one-stop shop where you can easily find and learn about the range of government support programs available to Irish businesses. The Hub makes it easier than ever to access the resources and guidance you need to succeed.

Local Enterprise Offices provide supports to local businesses that are starting up or in development. Their role is to stimulate economic activity at local level and to promote microenterprises (10 or fewer employees). You can find information about their training programmes and start your own business courses as well as mentoring and financial supports on localenterprise.ie.

New Frontiers is a development programme for potential entrepreneurs, funded and coordinated by Enterprise Ireland, which is delivered locally by Institutes of Technology.

 

Unemployed people

If you are unemployed you may be eligible for the Back to Work Enterprise Allowance (BTWEA) or the Short-Term Enterprise Allowance (STEA). If you are starting a business, you also may get extra supports under these schemes, such as grants for training, market research and business plans as well as access to loans to buy equipment.

 

Coming from outside Ireland

Nationals of the European Economic Area (EEA) or Switzerland do not need permission to set up a business in Ireland. You can find out more here with a step-by-step guide to set up a business or invest in Ireland.

 

Legal Structure

You can set up a business as a sole trader, as a partnership or as a limited company. The type of structure you choose depends on the kind of business you are running, with whom you will be doing business and your attitude to risk. It is advisable to get the advice of a solicitor or accountant when considering the structure for your business. The Companies Registration Office (CRO) has information about these different structures on its website, CRO.ie

 

Sole trader

It is relatively simple to set up as a sole trader but if your business fails, your personal assets could be used to pay your creditors. Your main legal obligation is that you must register as a self-employed person with Revenue (see Tax, PRSI and Employing Staff). If you wish to use a business name you must register your name with the Companies Registration Office (CRO).

 

Partnership

This is where 2 or more people agree to run a business in partnership with each other. The partnership agreement should be drawn up by a solicitor. The partners are jointly responsible for running the business and if it fails all partners are jointly responsible for the debt.

 

Limited company

If you set up your business as a limited company, the business is a separate legal entity. If the company gets into debt, the creditors generally only have a claim on the assets of the company. The company must be registered with the Companies Registration Office (CRO) and the company reports and accounts must be returned to the CRO each year.

 

Companies Act 2014

The Companies Act 2014, which replaced the Companies Acts 1963-2013, came into effect on 1 June 2015. Under the Act, private companies limited by shares can be registered as an LTD (private company limited by shares) or a DAC (Designated Activity Company). You can read more about the requirements for different types of companies under the companies Act 2014.

You can register your business name and file company returns online with the CRO using CORE (Companies Online Registration Environment).

 

Funding

Microfinance Ireland provides loans to small businesses with no more than 10 employees, including sole traders and start-ups. The loans of between €2,000 and €25,000 are for commercially viable proposals. Information on how to apply can be found here.

JobsPlus is an employer incentive which encourages and rewards employers who employ jobseekers on the Live Register.

Under the Trading Online Voucher Scheme vouchers of up to €2,500 may be available to businesses who demonstrate that they have a credible plan for trading online. Further details are available from your Local Enterprise Office.

 

Credit difficulties

If you have a small or medium business and your application for credit is refused by one of the participating banks you may apply to the Credit Review Office to have your case reviewed. To be eligible for a review your application must have been in writing. Details of the application process are available, here. The fee for the review ranges from €100 up to a maximum of €250.

The Credit Guarantee Scheme aims to encourage additional lending to small and medium businesses who are commercially viable but have difficulty in accessing credit. Under the Scheme eligible applicants will be assisted in obtaining a loan and in establishing a favourable credit history. You can find out more in the information booklet about the Scheme. There are also Customer Frequently Asked Questions (pdf) and eligibility criteria.

If you are having difficulties with your creditors the Chartered Accountants Voluntary Advice service  can give free advice and assistance on your business affairs. Contact your local Citizens Information Service or Money advice and Budgeting Service (MABS) to see if they offer their services.

 

Tax, PRSI and Employing Staff

Tax

How your business is taxed depends on whether or not it is incorporated as a company. If it is a company then it is liable for corporation tax. If your business is not incorporated as a company then you are considered to be a sole trader and you pay tax under the self-assessment system. Further information on tax for self-employed people is avaible here and from Revenue.

Earned Income tax credit: The Earned Income Tax Credit is equal to the lesser of 20% of your qualifying earned income or the specified amount. The specified amount for 2024 is €1,875. It is also available for business owners or managers who are not eligible for a PAYE credit on their salaried income. If a taxpayer also qualifies for the PAYE tax credit, the combined value of these 2 tax credits cannot exceed the maximum value of the Employee Tax Credit.

SURE tax relief: The Start-Up Relief for Entrepreneurs (SURE) is a tax relief that provides a refund of Income Tax that you paid in previous years. More information can be found here.

Start-up companies: New companies may get tax relief on the first five years of corporation tax. The value of the relief will be linked to the amount of employers’ PRSI paid by a company in an accounting period subject to a maximum of €5,000 per employee or €40,000 in total.

PRSI

If you are self-employed you pay Class S social insurance contributions. A helpful guide is available at this link: PRSI for the Self-Employed (pdf download).

Employing staff

If you are starting up a business and decide to recruit staff you must register for PAYE and PRSI with Revenue. You can find information in our document Employers' obligations in Ireland. The Workplace Relations Commission govern employee rights in Ireland and have produced a guide for employers who are starting a new business with a paid employee (PDF).

 

Further information

The Local Enterprise Office website is a fantastic place to start for anyone seeking information and support on starting or growing a business in Ireland. The Local Enterprise Office provides advice, information and support in starting up or growing your business.

The National Enterprise Hub is a one-stop shop where you can easily find and learn about the range of government support programs available to Irish businesses. The Hub makes it easier than ever to access the resources and guidance you need to succeed.

 

Additional helpful information relevant to starting a business in Ireland can be found in the links below:

Becoming Self-Employed

Opening a bank account

A-Z Listing of Licences/Permit 

Support for business available in Ireland

Business Plan Template (word doc download)

 

The following websites listed below also provide general information on starting a business in Ireland.

Setting up a Business (Citizens Information website)

Start a Business in Ireland (Enterprise Ireland website)

Starting and Running a Business (Office of the Revenue Commissioners website)

  

 Updated 19 September 2024


 

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