How To Start A Business In Ireland

There is no country that blends cultural heritage with modern-day innovation quite like Ireland. Nicknamed the Emerald Isle, it is renowned for its lush green landscapes that stretch for miles. Tourists flock to see the cities of Cork and Galway, admire the rugged coastlines and have a Guinness or two.

But beyond a tourist hotspot, Ireland is taking its place on the global stage and making waves in industries like technology and sustainability. British tech entrepreneurs are increasingly making the move to Killorglin, a tiny town on the West Coast. While more affordable than cities like Dublin, it is still a bustling startup hub.

If you are considering starting a business in this small yet mighty nation, here is everything you need to know to set yourself up for success.

Why Is Ireland A Good Place For Startups?

The Irish Examiner reported that the number of startups in Ireland exceeded 22,500 in 2023. Since then, this number has continued to grow rapidly. This is because the country has a number of compelling reasons to attract new entrepreneurs and ventures.

EU membership: Ireland is part of the European Union which opens the door to a wider market and trade can take place freely with other EU nations. Now in post-Brexit, Ireland happens to be the only English-speaking country left in the EU which is a strategic advantage.

Global presence: The country is home to some of the biggest multinational corporations who have their headquarters based there, including Meta, Apple and Google to name a few.

Educated population: With top educational institutions like Trinity College Dublin and University College Dublin, the country has a steady stream of highly educated graduates ready to enter the workforce.

Industries With High-Growth Potential

Choosing the right industry to expand into will play a big role in your startup’s longevity. While it is possible to find niche markets and opportunities, these particular industries have proven to thrive in Ireland.

Technology: Ireland has been dubbed as the “Silicon Valley” of Europe following the surge in cloud computing and AI startups.

Finance and FinTech: Dublin in particular has become a top spot for finance in Europe, especially for blockchain and digital payments.

Biopharmaceuticals: Ireland is home to some of the biggest names in the pharma industry including Pfizer, AstraZeneca and Johnson & Johnson.

Green energy: The government wants the country to operate on 80% of renewable electricity by 2030 and startups innovating in tidal and wind energy have emerged as a result.

Navigating The Irish Tax System

The corporate tax rate is 12.5% which is highly competitive and 25% for passive income. The Value Added Tax (VAT) rate is a standard rate of 23%. This is reduced to 13.5% for construction and hospitality and 9% for media and tourism.

For startups specifically, there are some tax incentives. One is the Startup Refunds for Entrepreneurs (SURE) where new businesses can get a refund of up to 41%. Those in research and development can also qualify for a 25% credit to invest in research.

Visa And Residency Requirements For Foreign Entrepreneurs

Residents who are part of the EU, EEA or are Swiss nationals are able to work and start a business in Ireland without any visas required. If these nationals intend on staying for more than three months, they will need to register with the Irish social services.

For non-EU/EEA nationals, these are the visa options available.

Immigrant Investor Programme: For eligibility, €1 million needs to be invested into an Irish company where it will be held for a minimum of three years. Applicants can apply for residency with renewal options however, citizenship is not an option.

Startup Entrepreneur Programme: This is suited to scalable startups in the industries of tech, clean energy or medical devices. Applicants can get a two-year residence permit that is renewable with a €50,000 investment amount.

Business Permission Scheme: For businesses such as restaurants or those in retail, this option is ideal with an investment amount of €300,000.

How To Start A Business In Ireland

If you have decided that Ireland is the best location for your startup, here is a step-by-step guide on how to get started with setting up your business.

Choose A Legal Entity

In Ireland, there are three common types of business structures based on the nature of your business activities.

Sole trader: A simple structure for one person but with personal liability.

Private Company Limited by Shares: This is suitable for foreign startups with less liability.

Partnership: For two or more people to share the ownership and liability.

Register Your Business

The next step is to register your startup with the Companies Registration Office. For this, you will need to provide a Constitution document, details about your directors and shareholders if applicable and a Form A1. The registration fee will vary from €50–€100 and thereafter you will receive your company number.

Register With Revenue

You can then apply for your Tax Identification Number and register for corporate tax. If your turnover is more than €75,000 for goods or €37,500 for services, you will be required to pay VAT too. If your startup requires employees, then you can also register for PAYE.

Open A Business Bank Account

A corporate bank account will be necessary in order to deposit your minimum required capital. This can be done through banks such as AIB or Bank of Ireland. For this, you will need to submit your business plan, CRO number and proof of identity of the company’s directors.

Should You Start A Business In Ireland?

There is no doubt that the Emerald Isle is an exciting place for startups given its worldwide access, resources and skilled population. For those who want to grow tech startups, venture into sustainability or establish a hospitality brand, the opportunities are endless.

Good luck!