How To Launch A Startup In Dublin

Dublin is known for its lively pub culture and historic architecture, but the city is gaining more recognition for being a robust business environment. Home to some exciting startups and the biggest multinational corporations, more entrepreneurs are being drawn to Ireland’s vibrant capital to launch their ventures.

Nicknamed the “Silicon Docks”, some major tech giants like Google, Facebook and LinkedIn have headquarters there, solidifying its international business presence.

Before starting a business there, one would need to consider which industries are doing particularly well, what funding opportunities are available as well as some potential challenges that could arise among other factors.

Is Dublin Conducive To Startups?

Dublin currently ranks 54th globally as a startup environment, with 190,7o4 active startups according to StartupBlink. The city has produced some of the most innovative companies in the last few years, and this could be due to a couple of reasons.

Firstly, Ireland offers a 12.5% corporate tax rate which is one of the lowest in Europe, instantly making it more attractive for entrepreneurs just starting out.

Secondly, there is plenty of opportunities to access funding whether it be through venture capitalists, angel investors or funding programs. The government is very hands-on with their initiatives to support startups, which is also why Dublin consistently ranks as one of Europe’s most entrepreneur-friendly cities.

Which Industries In Dublin Are The Most Profitable?

Dublin supports a diverse range of sectors, but there are a couple that tend to stand out for their growth potential which is something for new entrepreneurs to consider.

Fintech and financial services: Dublin is known as Europe’s fintech capital, home to companies such as Stripe and Revolut.

Tech and IT: Microsoft and Amazon are just a few of the global giants that have a presence in Dublin, and the city is seeing explosive growth in cloud computing, cybersecurity and AI.

Pharma and biotech: Some of the biggest names in the pharmaceutical industry, like Pfizer and Johnson & Johnson, operate in Ireland and there are plenty of research and development opportunities for entrepreneurs to take advantage of.

E-commerce and SaaS: These are growing industries as a result of a digitally-advanced economy and consumers who enjoy shopping online.

Accelerators And Incubators In Dublin

Joining an accelerator or incubator program can give startups a competitive edge and boost they need to get started, usually through funding, mentorship or events to meet other entrepreneurs.

Dogpatch Labs: This is a co-working space located in Dublin’s Docklands that can provide startup founders with investor connections.

National Digital Research Centre (NDRC): This is one of Ireland’s most prominent accelerators for startups particularly for digital and tech businesses.

NovaUCD: Suited to research-based and tech startups, this incubator is run by the University College Dublin.

Enterprise Ireland’s HPSU Program: This organisation offers investment and growth opportunities to startups with high-growth potential.

Funding Opportunities

There are multiple avenues in Dublin for raising the initial capital required for startups, and these are just a few of them.

Government support: Enterprise Ireland can provide funding to startups who show strong potential while Local Enterprise Offices (LEOs) can mentor early-stage startups and give them grants.

Bank or business loans: Traditional bank loans can be acquired through the Bank of Ireland or Ulster Bank. If startups don’t qualify for bank funding, they can apply for a loan through Microfinance Ireland.

Venture capital and angel investors: Some of the top venture capital firms include Frontline Ventures, Atlantic Bridge and ACT Venture Capital, while the Halo Business Angel Network can connect startups with investors.

Factors To Keep In Mind Before Starting A Business In Dublin

Regardless of which city you choose to start a business in, there will be both upsides and downsides to your decision. When it comes to setting up a business in Dublin, there are a few things to consider that could affect your startup’s success.

Rent and salaries are typically higher in Dublin compared to other Irish cities, so co-working spaces could be a good option for entrepreneurs who are on a tight budget.

If you are not an Irish resident, you will need to familiarise yourself with Irish laws beforehand especially when it comes to tax and employment regulations if your startup requires employees.

How To Register A Business In Dublin

If you have decided on Dublin as your location of choice for your startup, here is a step-by-step guide on how to register your business.

Choose Your Business Structure

You can choose between a sole trader, private limited company or partnership. A sole trader is probably the simplest structure, but personal liability will apply here if anything were to go wrong. A private limited company is ideal for startups who are looking to grow quite quickly and a partnership would be applicable for startups with two or more founders.

Register With CRO

Sole traders will need to register their business name with the Companies Registration Office, while limited companies are required to file incorporation documents with them.

Register For Tax

You can then apply for your tax number. If your annual turnover exceeds €37,500 in services or €75,000 in goods, you will be required to register for Value Added Tax (VAT).

Apply For Licenses And Permits

This step will be industry-specific, such as the food and finance sectors. You will be able to check with the Department of Business, Enterprise and Innovation to see if your industry have any additional requirements.

Should You Launch A Startup In Dublin?

Dublin can be an excellent location to start a business, due to its abundance of funding opportunities and its supportive business environment. There are plenty of networking opportunities so as an entrepreneur, you won’t need to feel isolated on your venture.

It all comes down to having the right strategy, finding a gap in the market and prioritising networking to set your startup up for success.

Good luck!