Starting a business

If you are thinking about starting a business, there are supports available to help you with planning, getting set up and funding and finance.

You should consider the regulations that apply (for example, in relation to paying tax and hiring employees), and the range of financial supports available to you.

Whether you are currently employed, unemployed, or coming from outside Ireland to set up a business, this page covers some of these important topics.

Read more about becoming self-employed, or visit our page about sources of information on starting a business.

You can also visit your Local Enterprise Office for advice on how to start, grow and develop your business. There are 31 Local Enterprise Offices in Ireland who work with micro-enterprises and sole traders. Enterprise Ireland gives support and advice to larger start-ups and Small and Medium Enterprises (SMEs). See more below on ‘Where to get advice on starting a business’.

If you are a foreign national

If you are from the European Economic Area (EEA) or Switzerland, you do not need permission to set up a business in Ireland.

If you are a non-EU/EEA and non-Swiss national and you want to open a business or invest in Ireland, you can apply for permission under the Immigration Investor Programme and Start Up Entrepreneur Programme.

Read more about coming to set up a business or invest in Ireland.

The type of legal structure you choose depends on the kind of business you are running, who you will do business with, and your attitude to risk.

You should get advice from a solicitor or accountant when considering the structure for your business. Get contact details for solicitors in Ireland on the Law Society website.

You can set up your business as:

• A sole trader
• A partnership
• A limited company

Sole trader

If you choose to be a sole trader, you are ‘self-employed’ and you do not have a business partner. You are personally responsible for the business.

Your main legal duty is to register as a self-employed person with Revenue (see the section on ‘Tax and PRSI’ below). If you want to use a business name, you must register your business name with the Companies Registration Office (CRO).

While it is relatively simple to set up as a sole trader, your personal assets could be used to pay your creditors if your business fails.

Partnership

A partnership is where you set up your business with 1 or more people (known as ‘partners’). Each partner is jointly responsible for running the business, and each partner must pay income tax, PRSI and USC on their share of the profits.

If the business fails, all partners are jointly responsible for the debt.

Your partnership agreement should be drawn up by a solicitor.

Limited company

If you set up your business as a limited company, you and your business are seen as separate entities. In general, this means that if the company gets into debt, the creditors only have a claim on the assets of the company (not your personal assets).

To set up a limited company, you must register with the Companies Registration Office (CRO). Your company must then return reports and accounts to the CRO each year. Register your business name and file your company returns online using the CRO’s CORE (Companies Online Registration Environment).

Different types of companies

Under the Companies Act 2014, private companies limited by shares can be registered as either:

• An LTD (private company limited by shares)
• A DAC (Designated Activity Company)

Read more about the requirements for different types of companies on the CRO website.

If you are starting a business, you can apply for funding and grants from a range of sources. For example:

Microfinance Ireland

Small Business Cashflow Loans from €2,000 to €50,000 are available through Microfinance Ireland (MFI). The loan terms are typically 3 years and there is a 1% discount on the APR Rate if you apply through your Local Enterprise Office. Once all documents are received, you will have a credit decision within 10 working days.

The loan is open to sole traders, partnerships, and limited companies with fewer than 10 full-time employees and annual turnover of up to €2 million. You can apply through the MFI website or through your Local Enterprise Office.

Local Enterprise Offices (LEOs)

Your Local Enterprise Office offers a range of financial supports, depending on your business needs. For example:

Enterprise Ireland

Enterprise Ireland helps Irish businesses to start-up and expand. It offers a range of financial supports, depending on your business needs. For example:

SEAI

You can also apply to the SEAI for business grants, specifically to reduce your business’ carbon footprint. For example:

Read more about the supports for businesses going green.

Government funding for employers

The Government has a number of financial schemes to help employers. Depending on your circumstances and the type of employees you hire, you may be eligible for:

• Future Growth Loan Scheme
• JobsPlus
• Community Services Programme
• Wage Subsidy Scheme for people with disabilities
• Employee Retention Grant Scheme
• Workplace Equipment Adaptation Grant
• The gender-based bursary for apprenticeships

Get more information about funding from your Local Enterprise Office or your local Intreo centre.

You may also be eligible for tax relief – see ‘Tax, PRSI and employing staff’ below.

If you are currently unemployed

If you are currently unemployed and want to start a business, you may be eligible for the Back to Work Enterprise Allowance (BTWEA) or the Short-Term Enterprise Allowance (STEA).

You may also 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. Contact your local Intreo centre for more information.

If you have a small or medium business and your application for credit is refused by one of the participating banks, you can apply to the Credit Review Office to have your case reviewed.

To be eligible for a review, your application must be in writing. Download the application form for a credit review (pdf) from the Credit Review Office website.

The fee for the review ranges from €100 to €250, depending on the value of the loan.

Get free financial advice

If you are having difficulties with your creditors, you can get free advice and assistance on your business affairs from the Chartered Accountants Voluntary Advice service (CAVA).

Contact your local Citizens Information Service or Money Advice and Budgeting Service (MABS) to see if they offer the CAVA service.

You can also read a list of FAQs about CAVA’s service on their website.

Paying tax and getting tax relief

How your business is taxed depends on whether it is a ‘limited company’ (see ‘Deciding on the legal structure of your business’ above).

If your business is a company, then it is liable for corporation tax. If your business is not a company, you are considered to be a ‘sole trader’ and you pay tax under the self-assessment system.

Read more about tax for self-employed people, or visit Revenue's website for information on registering for tax.

Earned Income tax credit

In 2024, self-employed people can claim an Earned Income tax credit of €1,875. This tax credit is also available for business owners or managers who are not eligible for a PAYE credit on their salary income.

If a taxpayer also qualifies for the PAYE tax credit, the combined value of these 2 tax credits cannot exceed €1,875.

SURE tax refund

The Start Up Refunds for Entrepreneurs (SURE) is a tax refund scheme that allows eligible people to get a refund of up to 41% of the capital they invest in starting a business.

Under the SURE scheme, you may be entitled to a refund of PAYE income tax that you paid over the 6 years before the year in which you invest.

See Revenue's website for more details on the SURE scheme.

Start-up companies

New companies may get tax relief on the first 3 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, up to a maximum of €5,000 per employee.

Capital Gains Tax (CGT) relief

If you sell your business on or after 1 January 2017, a lower rate of Capital Gains Tax (10%) will apply to the net chargeable gains arising from the sale of all (or part) of your business, up to a lifetime limit of €1 million.

Read more about capital gains for companies on the Revenue website.

Paying PRSI

If you are self-employed, you pay Class S social insurance contributions. You can read more about PRSI for the Self-Employed (pdf) from the Department of Social Protection.

Employing staff

If you are starting a business and decide to recruit staff, you must register for PAYE and PRSI with Revenue.

You can find information about employers' obligations in Ireland. You can also read the Workplace Relations Commission’s (WRC’s) guide for employers who are starting a new business with a paid employee (pdf).

Or, visit our pages about:

• Contracts of employment
• Minimum wage
• Payslips
• Social insurance (PRSI)
• Leave and holidays
• Health and safety at work
• Data protection in the workplace

Local Enterprise Office

If you need help planning your business, or need advice about how to get started, contact your Local Enterprise Office.

Local Enterprise Offices support businesses that are starting up or in development. They can help you to stimulate economic activity at a local level and promote your microenterprise (with 10 or fewer employees).

Visit the Local Enterprise website for information on:

• Training programmes
• Start-your-own-business courses
• Mentoring
• Financial supports

New Frontiers

You can also apply to New Frontiers, which is a national development programme for early-stage entrepreneurs. The programme involves practical and interactive workshops, as well as one-to-one mentoring.

It is delivered locally by third-level institutions across the country (including Institutes of Technology and Technological Universities), and it is funded by Enterprise Ireland.

Find more sources of information on starting a business, as well as information about becoming self-employed and closing or selling a business.

You can also see the range of supports for making your business eco-friendly.

For information about different business structures, visit the Companies Registration Office (CRO) website.

Or, if you need information about employing staff and employment rights, contact the Workplace Relations Commission’s (WRC’s) information and customer service.