What is the best business structure for starting a business in Ireland?

It depends on your circumstances. Sole trader is best for low-risk service providers wanting quick setup (€0-50 cost). Limited company is better for growth businesses, higher-risk activities, or those planning to raise investment (€125-200 setup cost).

How long does it take to start a business in Ireland?

Sole traders can start immediately. Limited companies take 7-10 days for CRO registration. Complete setup including tax registration, banking, and VAT typically takes 4-8 weeks depending on complexity.

What are the costs of starting a business in Ireland?

Sole trader: €0-50 for basic setup. Limited company: €125 CRO fee plus €25 name reservation. Additional costs include business bank account (€0-200), insurance (€200-1000), and professional services if needed.

Do I need to register for VAT when starting a business in Ireland?

VAT registration is required when turnover exceeds €42,500 for services or €85,000 for goods in any 12-month period. Many businesses register voluntarily early to reclaim startup VAT and appear more professional.

What licenses and permits do I need to start a business in Ireland?

Requirements vary by industry. Common needs include: business registration (companies), tax registration, VAT registration, professional body membership, local authority licenses (food, retail), and industry-specific permits. Check with relevant authorities for your sector.

Start a Business in Ireland (2025): Complete Guide | PayVat

Your Business Launch Roadmap

Follow this proven roadmap used by successful Irish businesses. Each phase builds on the previous one.

1. Planning

Business idea validation, market research, business plan

Weeks 1-2

2. Structure

Choose structure, register business, open accounts

Weeks 3-4

3. Compliance

Tax registration, VAT setup, insurance, licences

Weeks 5-6

4. Launch

Marketing, first customers, operations, growth

Weeks 7-8

Fast Track with PayVat

PayVat customers complete setup 50% faster by automating compliance steps. Focus on business building while we handle the bureaucracy.

Choose Your Business Structure

Your business structure affects liability, taxes, credibility, and growth options. Choose wisely from day one.

Sole Trader

Start trading immediately

Minimal setup costs (€0-50)

Simple tax returns

Keep all profits

Unlimited personal liability

Harder to raise investment

Best for: Service providers, consultants, freelancers, low-risk businesses

Limited Company

Limited liability protection

Professional credibility

Tax planning opportunities

Easier to raise finance

More complex setup (€125-200)

Annual compliance requirements

Best for: Growth businesses, multiple shareholders, higher risk activities, investment plans

Registration & Setup Process

Step-by-step process to get your business legally established and ready to trade.

Business Name & Structure

For Sole Traders:

• Choose trading name (optional)
• Check domain availability
• Register trademark if needed
• Start trading immediately

For Companies:

• Reserve company name (€25)
• Prepare incorporation documents
• Submit to CRO (€100)
• Receive company number (7-10 days)

Tax Registration

Essential Registrations:

• Tax Reference Number (TRN)
• VAT registration (if required)
• Revenue Online Service (ROS)

• Employer PRSI (if hiring)
• Corporation tax (companies)
• Professional body registration

VAT Registration Trigger Points

Must register when turnover exceeds €42,500 (services) or €85,000 (goods)in any 12-month period. Many register early for credibility and to reclaim startup VAT.

Banking & Finance

Business Bank Account

• Separate business finances
• Professional appearance
• Easier VAT compliance
• Business credit building

Required Documents

• ID and address proof
• Tax Reference Number
• Business plan/projections
• Initial deposit (varies)

Insurance & Protection

Essential Insurance

• Public liability (€2M minimum)
• Professional indemnity
• Employer liability (if hiring)
• Business interruption

Optional but Recommended

• Equipment insurance
• Cyber liability insurance
• Directors & officers (companies)
• Key person life insurance

First 90 Days Success Plan

Critical milestones to hit in your first 90 days to set your business up for long-term success.

30
Days 1-30: Foundation

Complete legal setup

Open business accounts

Get essential insurance

Set up basic systems

Create PayVat account

60
Days 31-60: Launch

Launch marketing campaigns

Acquire first customers

Generate initial revenue

Refine operations

Build online presence

90
Days 61-90: Scale

Analyze performance data

Optimize processes

Plan growth strategies

Consider VAT registration

Review legal compliance

Common Startup Mistakes

Learn from others' mistakes. These are the most expensive errors new Irish businesses make.

Choosing wrong business structure

Switching later is expensive and complex. Consider liability, growth plans, and tax implications carefully.

Mixing personal and business finances

Makes accounting nightmare, VAT compliance impossible, and reduces credibility with banks.

Delaying VAT registration

Late registration triggers penalties up to €12,695 plus back-dated VAT liability.

Poor record keeping from start

Missing receipts, no invoice system, poor filing makes compliance expensive and stressful.

Inadequate insurance coverage

One lawsuit or accident can destroy an uninsured business. Get proper coverage from day one.

Ignoring legal compliance

Missing deadlines, wrong tax rates, no data protection compliance can trigger investigations.

Underpricing services/products

Not accounting for all costs (including VAT, insurance, taxes) leads to unprofitable businesses.

No business plan or projections

Banks won't lend, investors won't invest, and you can't plan growth without proper financials.

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Last updated: August 12, 2025