Key takeaway
The simplest way to start a business in Ireland — registering as a sole trader, your tax obligations, and what to do first.
What is a sole trader?
A sole trader is the simplest form of business in Ireland — you're self-employed and running a business as an individual. There's no separation between you and the business legally; you own all the profits but are also personally liable for any debts. It's suitable for freelancers, tradespeople, consultants, and anyone starting a small service-based business.
Step 1: Register your business name (if needed)
If you trade under your own full name (e.g. "Jane Murphy Consulting"), you don't need to register a business name. If you use any other name (e.g. "Dublin Digital Agency"), you must register it with the Companies Registration Office (CRO) at cro.ie. The fee is €20 online. Registration takes a few days and you'll receive a Certificate of Business Name.
Step 2: Register with Revenue
You must notify Revenue within 30 days of commencing self-employment. The quickest way is through Revenue's myAccount — go to "Manage My Record" and select "Register for Self Assessment / Income Tax". You'll be set up on the self-assessment (Form 11) system and given a tax registration number.
Step 3: Understand your tax obligations
As a sole trader, you pay:
- Income tax — 20% on income up to the standard rate cut-off; 40% above it (same rates as employees)
- PRSI Class S — 4% on all income above €5,000. Qualifies you for some PRSI benefits.
- USC — Universal Social Charge on all income above €13,000
You file a Form 11 tax return each year by 31 October (or mid-November via ROS, Revenue's online system). You pay preliminary tax (estimated tax for the current year) at the same time.
Step 4: Open a separate business bank account
Not legally required but strongly recommended — keeping business and personal finances separate makes bookkeeping and tax returns far simpler. Most Irish banks offer business current accounts; some online banks (Revolut Business, Wise Business) are cheaper for smaller operations.
Do you need to register for VAT?
Only if your turnover exceeds €37,500 per year (services) or €75,000 (goods). Below those thresholds, VAT registration is voluntary. If you register, you charge VAT on your sales (23% standard rate) and can reclaim VAT on your business costs. If many of your clients are VAT-registered businesses, voluntary registration often makes sense.
General guidance only. Always verify with official sources — gov.ie, citizensinformation.ie, hse.ie.