Starting a business is an exciting yet challenging journey. Entrepreneurs often have many questions about legal structures, taxation, funding, and compliance. To help you get started, we’ve compiled answers to the 10 most frequently asked questions when starting a business in Ireland.
1. What Business Structure Should I Choose?
The two most common business structures in Ireland are:
✅ Sole Trader – The simplest structure where you and your business are the same legal entity. Ideal for freelancers and small businesses.
✅ Limited Company (LTD) – A separate legal entity offering limited liability. Best for businesses with growth potential, investors, or multiple stakeholders.
📌 Key Consideration: If you expect profits over €50,000, an LTD may offer tax benefits. Otherwise, a Sole Trader is simpler to set up.
2. How Do I Register My Business?
💼 For Sole Traders:
- Register your business name with the Companies Registration Office (CRO).
- Apply for a Tax Registration Number (TRN) with Revenue.
🏢 For Limited Companies:
- Register your company with the CRO via CORE (cost: approx. €50–€250).
- Get a Company Registration Number (CRN).
- Register for Corporation Tax, VAT (if applicable), and PAYE with Revenue.
📌 Tip: A professional accountant can handle company formation and tax registration for you.
3. Do I Need a Business Bank Account?
🔹 Sole Traders can use a personal bank account but are advised to open a separate business account for better financial tracking.
🔹 Limited Companies must have a dedicated business bank account in the company’s name.
📌 Tip: Banks require proof of business registration, ID, and address to open an account. Some banks offer startup-friendly accounts with reduced fees.
4. What Taxes Will I Need to Pay?
🔹 Sole Traders:
- Income Tax (up to 40%) + PRSI (4%) + USC (up to 8%).
- File an Annual Self-Assessment Tax Return (Form 11).
🔹 Limited Companies:
- Corporation Tax (12.5%) on company profits.
- PAYE, PRSI & USC on any salary taken.
- Must file Annual Returns & Financial Statements with the CRO.
📌 Tip: VAT registration is optional until revenue exceeds €37,500 (services) or €75,000 (goods) per year.
5. How Do I Register for VAT?
You must register for Value Added Tax (VAT) if:
✅ You exceed the VAT threshold (€37,500 for services or €75,000 for goods).
✅ You import/export goods within the EU.
✅ Your clients request a VAT invoice.
📌 How? Register through ROS (Revenue Online Service) or consult an accountant for advice.
6. What Grants & Funding Are Available for Startups?
💰 Key Startup Funding Options in Ireland:
- Local Enterprise Office (LEO) Grants – Feasibility & Priming Grants.
- Enterprise Ireland – Supports innovative & export-driven businesses.
- Microfinance Ireland Loans – Unsecured loans up to €25,000.
- Back to Work Enterprise Allowance (BTWEA) – Financial support for unemployed individuals starting a business.
📌 Tip: Research grant eligibility criteria and seek professional advice before applying.
7. Do I Need a Business Plan?
Yes! A solid business plan helps you:
✅ Define business goals & target market.
✅ Secure funding & investment.
✅ Create a roadmap for growth & success.
📌 Tip: Keep it simple – include sections on market research, pricing, financial projections, and marketing strategy.
8. How Do I Register a Business Name?
If you’re trading under a name different from your legal name, you must register a business name with the Companies Registration Office (CRO).
📌 Example:
❌ John Murphy (No registration needed).
✅ Murphy’s Digital Solutions (Must be registered).
💡 Tip: Check name availability on the CRO website before registering.
9. What Are My Legal & Compliance Responsibilities?
📜 For Sole Traders:
- Keep proper financial records.
- Submit an annual self-assessment tax return.
- Follow consumer protection and contract laws.
🏢 For Limited Companies:
- File Annual Returns with the CRO.
- Maintain accurate company accounts & financial statements.
- Follow employment laws if hiring staff.
📌 Tip: An accountant can help you stay compliant and avoid penalties.
10. How Can I Market My New Business?
📢 Effective Strategies to Get Clients:
✅ Build an Online Presence – A website, social media, and Google My Business are essential.
✅ Networking & Referrals – Join business groups and events.
✅ SEO & Content Marketing – Rank on Google with blogs and local SEO.
✅ Paid Ads – Facebook Ads, Google Ads, and LinkedIn Ads.
✅ Email Marketing – Build a list and engage with potential customers.
📌 Tip: Digital marketing is key for modern startups. Consider hiring a professional or learning SEO & paid ads.
Final Thoughts
Starting a business in Ireland involves important decisions, from choosing the right structure to understanding tax obligations and securing funding. Taking the time to plan properly and seek professional advice can set you up for success.
📞 Need help with business formation, tax registration, or compliance?
At Gahan & Co Chartered Accountants, we provide expert guidance to startups and small businesses. Contact us today to get started!
📞 Thinking of Starting Something?
Book a call with Gahan Accountants today —
