How to start a business in Ireland: the steps in order, and where the money is

Before you start: two things to check

Are you on a jobseeker's payment? The enterprise allowances only go to businesses that are approved before they start trading. Talk to your Intreo Centre before you do anything else on this page.

Are you counting on a grant? Most State grants for business are aimed at manufacturers, exporters and technology firms. The tool below shows what a business like yours can apply for.

Step 1: decide the structure

You can set up as a sole trader, a partnership or a limited company.

• Sole trader. You work for yourself and you are personally responsible for the business. If it fails, your personal assets can be used to pay its debts.
• Partnership. Two or more people run the business together. All the partners are jointly responsible for the debts.
• Limited company. The company is a separate legal entity. In general you are not personally responsible for its debts, but it must send a return to the Companies Registration Office every year.

We set out how the two main structures compare on liability, tax and running costs. Citizens Information says to get advice from a solicitor or an accountant before you decide.

Step 2: register for tax, and the name if you need to

You must register for tax with Revenue when you become a sole trader, set up a partnership or start a company. A sole trader needs a PPS number and registers online, through myAccount or the Revenue Online Service (ROS).

If you trade under any name other than your own surname, you must also register it with the Companies Registration Office (CRO) within one month of starting to use it. It costs €20 online or €40 on paper.

A limited company is formed at the CRO first, for €50 online, and registers for tax after that.

Our guide to the forms, fees and waiting times for each registration takes them one at a time.

Step 3: bank account, insurance, licences and planning

• Bank account. A business account keeps the business's money apart from your own. Citizens Information says that if you use a business name, you will generally need the CRO's Certificate of Registration to open one.
• Insurance. Citizens Information says you are not legally obliged to insure a business, but it advises public liability cover if the public has access to your premises. Motor insurance is different. It is illegal to drive without it.
• Licences. A food business must register before it starts, and that includes cafes, coffee shops and food trucks. Selling alcohol needs a licence issued by Revenue. The Department of Enterprise runs a list of licences and permits, sector by sector.
• Planning. Working from home can need planning permission if it changes how the building is used, such as turning a garage into a workshop. Ask your local authority.

Step 4: keep records and know your tax dates

Revenue says you must keep your records for six years. That means sales invoices, receipts for purchases and expenses, and your accounting books.

A sole trader pays income tax, USC and PRSI on the profit, once a year. By 31 October you file the return for the year before and pay preliminary tax for the current year. A limited company pays corporation tax instead, at 12.5% on trading income.

You must register for VAT once your turnover in a calendar year passes €42,500 for services or €85,000 for goods. If you take on staff, register as an employer with Revenue before you pay them.

We explain what a self-employed person pays, and when it falls due, with the 2026 rates.

Where the money is

Start with the bad news. Most local businesses cannot get a Local Enterprise Office start-up grant. Dublin City's office, for example, lists retail, cafes, pubs, hairdressers, builders and trades among the businesses its grants do not cover. See which Local Enterprise Office grants exist and who is shut out.

The offices do offer every business training and mentoring, including Start Your Own Business courses.

The money an ordinary local business can apply for is this:

• If you are on Jobseeker's Benefit: an allowance that pays your benefit rate while the business finds its feet, for up to 9 months.
• If you have been on Jobseeker's Allowance or another qualifying payment for at least 9 months: a two-year allowance worth 100% of your payment in year one and 75% in year two.
• With either allowance: the Enterprise Support Grant towards start-up costs. It pays up to €2,500 on the two-year allowance or up to €1,000 on the 9-month one, and you put in at least 20% yourself.
• If a bank will not lend: loans of €2,000 to €50,000 from the State's small business lender, at 6.5%, or 5.5% if you apply through a Local Enterprise Office.

The business plan every funder asks for

The enterprise allowances, Microfinance Ireland, the banks and the Local Enterprise Offices all ask for a written business plan and a cashflow forecast.

We have an outline that covers each funder's questions, section by section.

Common questions

Keep reading

• start-up grants a new Irish business can really get
• borrowing before your first year of trading