Can I set up a company or be a sole trader in Ireland?
Yes — anyone can, and EU/EEA/Swiss/UK nationals need no special permission. There are three structures: sole trader, partnership or limited company. A sole trader registers as self-employed with Revenue and pays tax by self-assessment, but has unlimited personal liability. If you trade under any name other than your own, you must register the business name with the CRO. A limited company registers with the CRO (online via CORE), files annual returns and accounts, and is a separate legal entity, so personal liability is generally limited. The self-employed pay Class S PRSI and get an Earned Income Tax Credit of €2,000. Non-EEA nationals need an immigration route (such as the Start-Up Entrepreneur Programme). In short: yes — choose sole trader for simplicity or a company for limited liability.
📋 The rules
- Be a sole trader, partnership or limited company
- Sole trader registers as self-employed with Revenue
- A trading name must be registered with the CRO
- A company files annual returns and accounts
- Self-employed pay Class S PRSI + €2,000 credit
🔓 Exceptions
- Non-EEA nationals need a business-immigration permission (e.g. STEP)
- New start-up companies may get 5 years' corporation-tax relief
- The unemployed may qualify for Back to Work Enterprise Allowance
⚠️ Penalties & fines
A sole trader has unlimited personal liability — if the business fails, personal assets can pay its debts; a limited company is a separate legal entity, so liability is generally limited (but directors have duties and must file on time with the CRO). Supports include Microfinance Ireland loans of €2,000–€50,000 (via a Local Enterprise Office) and the SURE scheme, which can refund up to 41% of capital invested. Beware a myth: "a sole trader and a limited company are taxed the same" is false — sole traders pay income tax, USC and PRSI by self-assessment, while companies pay corporation tax; the two carry very different liability and tax consequences. To start: register for tax with Revenue as a sole trader, or incorporate via the CRO, and register any trading name.
📎 Official sources
- Citizens Information — starting a business →
- CRO — register a business name →
- Revenue — registering for tax →
❓ Frequently asked
Can I just start working as a sole trader?
Yes. Being a sole trader is the simplest way to start a business — you register as self-employed with Revenue and pay tax through self-assessment. EU, EEA, Swiss and UK nationals need no special permission. The main downside is unlimited personal liability, meaning your personal assets are at risk if the business runs into debt.
Do I have to register a business name?
If you trade under any name other than your own true name, yes — you must register that business name with the Companies Registration Office. For example, if your name is Mary Murphy but you trade as 'Bright Cleaning', you need to register 'Bright Cleaning'. Trading under your exact own name doesn't require business-name registration.
What's the difference from a limited company?
A limited company is a separate legal entity registered with the Companies Registration Office. It generally limits your personal liability, but you must file annual returns and accounts, and it pays corporation tax rather than personal income tax. A sole trader is simpler to set up but carries unlimited personal liability and is taxed through self-assessment.
How are the self-employed taxed?
Self-employed sole traders pay income tax, USC and PRSI on their profits through Revenue's self-assessment system, filing a return each year. They pay Class S PRSI and can claim an Earned Income Tax Credit of €2,000. Limited companies instead pay corporation tax on profits, with directors taxed separately on what they take from the company.
Can a non-EEA national start a business here?
EU, EEA, Swiss and UK nationals can set up a business in Ireland freely. Non-EEA/Swiss/UK nationals generally need an appropriate immigration permission to run a business, such as the Start-Up Entrepreneur Programme. There are also supports, like the Back to Work Enterprise Allowance, for people moving from welfare into self-employment.
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