Starting a business in Ireland is one of the quickest set-ups in Europe on paper: an online form, a tax registration and you can invoice. The nuance is that the form you choose decides who is liable, who files what and how much you contribute. This guide covers the two main routes, sole trader and limited company, with the 2026 figures from Revenue, the Companies Registration Office and Citizens Information.
Do you need permission to start a business in Ireland?
Not if you are a citizen of the EU, the EEA or Switzerland (freedom of establishment) or British (Common Travel Area). Citizens of other countries need an authorisation, such as the Start-up Entrepreneur Programme. You do need a PPS number, because your tax reference number is your PPS number (see the PPS number guide).
If you remain insured in another country because you work in two, EU social security rules decide where you contribute: check with your home institution before registering.
Which structure should you choose?
- Sole trader: you register with Revenue. You pay income tax on profits and are personally liable for debts. If the business fails, your personal assets can be used.
- Partnership: several people share liability.
- Limited company ("LTD"): a separate legal entity, registered with the CRO.
Your Local Enterprise Office offers free initial advice, and Citizens Information recommends a professional's help when choosing. There is no legal obligation for a sole trader to have an accountant.
How do you register as a sole trader?
- Get your PPS number.
- If you already have a myAccount, go to Manage My Record, then Tax registrations, choose Income Tax, and give your activity code (NACE), start date and expected turnover. Otherwise use ROS (Revenue Online Service). Paper form TR1 is only for people who cannot register online.
- If you trade under a name other than your own, register it with the CRO within the month you start using it (form RBN1 on CORE). The certificate is usually asked for when opening a business bank account.
- Keep your books from day one: sales, purchases, receipts and payments.
- Once registered, you must file and pay online through ROS.
How do you set up a limited company?
- Register at the CRO with the online A1 form on CORE (fee €50 in 2026, online only). You can reserve a name first for €25, valid 28 days and deducted from the registration fee.
- Appoint at least one director and a company secretary (the secretary cannot be a sole director), all adults, with at least one director living in the EEA, or else a €25,000 bond or a section 140 certificate from the CRO. The United Kingdom has not counted as part of the EEA since 31 December 2020.
- Declare beneficial owners to the Register of Beneficial Ownership within five months.
- Register the company with Revenue (form TR2).
- File an annual return (B1, €20) with the CRO and the corporation tax return on ROS.
The CRO aims for 10 working days for ordinary online registrations; a faster route, Fé Phráinn, uses pre-approved model articles.
The choice between sole trader and company depends on income, risk, clients and where you live. If you want a quick walk-through of the decision with the official numbers, Moovy can structure it for you, and an accountant should confirm before you register.
What tax and contributions will you pay?
- Income tax and USC for a sole trader: same bands as employees (20% up to €44,000 for a single person in 2026, then 40%), with an earned income credit of up to €2,000 (€2,000 at most when combined with the employee credit). USC adds 3% on non-PAYE income, such as self-employment, rent or investments, above €100,000, which makes 11% on that slice.
- PRSI class S: 4.2% of gross income until 30 September 2026 and 4.35% from 1 October 2026, with a minimum payment of €650. Below €5,000 of income a year, class S PRSI is not due. Class S does not cover short-term sick pay, so consider insurance.
- Corporation tax: 12.5% on trading profits, 25% on non-trading income such as rents and investments.
For personal tax and deadlines, see taxes in Ireland for new residents.
When do you register for VAT?
In 2026: €42,500 turnover for services, €85,000 for goods (or for a mixed business with at least 90% of turnover from goods), €10,000 for EU distance sales and €41,000 for purchases from other EU countries. Standard rate 23%, reduced rates 13.5% and 9%. You can register voluntarily, for instance to recover VAT on start-up costs. Invoicing without VAT above the threshold can cost a €4,000 penalty plus daily interest.
What deadlines should you remember?
Every year before 31 October: the Form 11 self-assessment return for the previous year, the balance for that year and the preliminary tax for the current year. In 2026 the date is 31 October, or 18 November if you file and pay on ROS. Preliminary tax is at least 90% of this year's tax, or 100% of last year's, or 105% of the year before (direct debit only). In the first year, it can be nil.
Financial help exists: Microfinance Ireland lends €2,000 to €50,000 to businesses of fewer than 10 people, and the 31 Local Enterprise Offices offer feasibility and start-up grants.
Is it easy to start a business in Ireland as a newcomer?
The registration is quick: an online form and a tax number. The effort goes into the choices that follow. Decide the structure, check whether you will pass the VAT threshold, set up your books and understand the calendar. If you have just arrived, add a prior question: what is your tax residence this year? See taxes in Ireland for new residents.
When you start a business in Ireland, the Local Enterprise Office near you can give free initial guidance. Microfinance Ireland offers loans to small firms. Neither replaces an accountant, but both help you test an idea cheaply.
What do you need to keep from day one?
- Records: sales, purchases, receipts and payments, with invoices and bank statements. Revenue does not ask for them with your return but may audit them.
- A business bank account: the business name certificate is usually requested; see bank account in Ireland.
- A PPS number and myAccount or ROS access.
- Your insurance plan: class S PRSI does not cover short-term sickness.
What if you work for yourself in two countries?
If you work in Ireland and in your home country, social security coordination rules decide where you pay contributions. Ask your home institution before you register, and keep any A1 certificate. The same applies if you are posted by an employer: the A1 certificate keeps you in your home system for up to 24 months.
When is a company better than a sole trader?
A company separates your personal assets from the business and pays corporation tax at 12.5% on trading profits, but it brings annual filings, a registered office in Ireland, a director living in the EEA, and beneficial ownership reporting. A new company may qualify for start-up relief over its first five years if its corporation tax is €40,000 or less (partial relief up to €60,000). The relief is linked to the employer's PRSI it pays, up to €5,000 per employee or director, and since 2025 up to €1,000 of class S PRSI per director who pays class S. A sole trader is simpler but exposes your own assets. If you hire employees, read working in Ireland for the rules on contracts, wages and leave.
Before you choose, have an Irish accountant or tax adviser check your figures and your residence position: the right structure depends on your income, your clients and your plans.
What are the traps?
- Thinking sole trader means no risk. Liability is personal.
- Forming a company without an EEA director. It is an offence, unless a bond is in place. This matters if you are British.
- Skipping beneficial ownership. Five months from registration.
- Filing on paper. Revenue returns paper forms that could be online.
- Relying on PRSI class S for sickness.
If you intend to work as an employee instead, read working in Ireland.