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Starting a business in Ireland takes fewer steps than most people expect. You choose a legal structure, register the business with the Companies Registration Office (CRO) if needed, register for tax with Revenue, and sort out the practical basics: a bank account, insurance and proper records. This guide puts the steps in the right order and links to our detailed guides for each one.

Key facts

  • The two most common structures are sole trader and limited company (LTD).
  • A sole trader registers with Revenue on form TR1. A company is formed with the CRO on form A1 (€50 online) and registers with Revenue on form TR2.
  • Trading under a name that is not your own requires a business name registration (€20 online), within one month.
  • VAT registration is required once turnover passes €42,500 for services or €85,000 for goods in a calendar year.
  • Companies pay 12.5% corporation tax on trading profits. Sole traders pay income tax, USC and PRSI.

Budget 2027 update: Budget 2027, announced on 6 October 2026, kept corporation tax at 12.5% and left the VAT thresholds unchanged. It extended the Section 486C start-up relief for new companies to 31 December 2030. See Budget 2027: what it means for Irish businesses.

Step 1: Test the idea before you spend money

Before registering anything, check that people will pay for what you plan to sell. Talk to potential customers, look at who already serves them and at what price, and work out what you need to earn each month to cover your costs and pay yourself. A simple one page plan covering customers, pricing, costs and how you will find buyers is enough to start. Your Local Enterprise Office (there is one in every county) runs start your own business courses and mentoring, and is the first port of call for small business supports.

Step 2: Choose your legal structure

This decision affects your tax, your personal liability and your paperwork.

  • Sole trader: quickest and cheapest. You and the business are the same legal person, so you are personally liable for its debts, and profits are taxed as your income.
  • Limited company: a separate legal entity with limited liability and 12.5% corporation tax on trading profits, but more rules, public filings and annual costs.
  • Partnership: two or more people in business together without forming a company. A written partnership agreement is strongly advised.

We compare the first two in detail in sole trader vs limited company in Ireland.

Step 3: Register the business

If you are a sole trader or partnership

You do not need to register with the CRO unless you trade under a name other than your own. If you do, register the business name on form RBN1 (individual) or RBN1A (partnership) within one month of adopting it. It costs €20 online. Our guide on how to register a business name in Ireland covers the rules, including words you cannot use.

If you are forming a company

File form A1 and the company constitution on the CRO’s CORE system. You need a name, at least one director, a separate company secretary, an Irish registered office and at least one EEA resident director (or a €25,000 bond). Within five months you must also register the company’s beneficial owners. Full steps are in our guide on how to set up a limited company in Ireland.

Step 4: Register for tax with Revenue

Every new business must register with Revenue, online through the Revenue Online Service (ROS):

  • Sole traders and partnerships use form TR1 to register for income tax self-assessment. You file a Form 11 each year under Pay and File, due by 31 October in the year after the tax year (with a later date if you pay and file on ROS).
  • Companies use form TR2 to register for corporation tax.
  • VAT is registered on the same forms. It becomes compulsory once turnover passes the thresholds, and you can register voluntarily before then, which lets you reclaim VAT on start-up costs. See our guide to the VAT registration threshold in Ireland.
  • Employing staff: you must register as an employer with Revenue before you pay anyone, so that you can operate payroll taxes.

Step 5: Open a business bank account

A company must have its own bank account because it is a separate legal person. Sole traders are not legally required to, but a separate account makes bookkeeping and tax returns far easier and keeps business and personal spending apart. Banks will usually ask for your CRO certificate (for a company) or business name certificate, and proof of identity and address.

Step 6: Get the right insurance

The cover you need depends on the business. Common types include public liability insurance (if customers or the public could be injured on your premises or by your work), employer’s liability insurance (once you have staff), professional indemnity insurance (if you give advice or design services), and cover for premises, stock and equipment. A broker can tell you what is standard in your sector.

Step 7: Set up your records from day one

Revenue requires you to keep records of income and expenses that support your tax returns, and VAT registered businesses must keep proper VAT records and invoices. Use accounting software from the start, keep every receipt, and set aside money for tax as you go. If you form a company, put a calendar reminder in for its annual return to the CRO each year, because late filing fees start at €120.

Step 8: Use the free supports

Your Local Enterprise Office offers training, mentoring and advice for small businesses, and administers some grant schemes for eligible businesses. Enterprise Ireland supports businesses with export and high growth potential. Check what is available before spending your own money on things like a website or consultancy.

Start-up checklist

  1. Test the idea with real customers and write a one page plan.
  2. Choose sole trader, partnership or limited company.
  3. Register your business name or form your company with the CRO.
  4. Register for tax with Revenue (TR1 or TR2), and for VAT if needed.
  5. Register as an employer before hiring.
  6. Open a business bank account.
  7. Arrange insurance.
  8. Set up bookkeeping and a tax savings habit.
  9. Contact your Local Enterprise Office.

Frequently asked questions

How much does it cost to start a business in Ireland?

Registration costs are low. A business name costs €20 online and forming a limited company costs €50 online. Your real costs are things like equipment, stock, insurance, a website and accountancy fees, which vary by business.

Do I need to register a business to start trading?

Every business must register with Revenue for tax. CRO registration is only needed if you form a company or trade under a name other than your own.

Do I need to register for VAT straight away?

Not unless your turnover will pass the VAT thresholds. You can register voluntarily, for example to reclaim VAT on start-up costs.

Should I start as a sole trader or a company?

Many people start as sole traders and incorporate when profits grow. Read our sole trader vs limited company comparison and ask an accountant to model your numbers.

Where can I get free help starting a business?

Your Local Enterprise Office is the main source of free and low cost training, mentoring and advice for new small businesses in Ireland.

Related guides

Sources

Checked against CRO and Revenue guidance in October 2026. This guide is general information, not legal or tax advice. More business guides and news in our Business section, and if you are launching something new, tell us through Submit Your News.

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