There are many aspects to consider when setting up a business. Starting a company in Ireland is not easy, but it can be rewarding. Having the right structure and systems in place can make all the difference between success and failure.
Check If You Have Chosen the Right Business Structure
- Sole trader
As Ireland is a member of the European Union, you may be familiar with the terms “sole trader” and “company”. The main difference between these two business structures is that in addition to having an owner who can act as director of your company, you also have shareholders who share ownership of the company.
You must decide which structure suits your needs best. For example, if you are looking for someone else to invest in your business or if you plan on expanding it later on, then setting up a limited liability entity (which is what we call companies here) would be more beneficial.
On the other hand, if all you need is some extra income while working another job full-time or part-time as well as taking care of family responsibilities, then running your own sole trading business could work better for you since there’s not much paperwork involved in setting up one.
Check If Your Name is Available
You can check if your company name is available by searching the company name registry. This can be an arduous tasks, especially if you don’t have experience in searching law registries, so many Irish businesses hire local law searchers such as Ellis and Ellis Law Search to see if their desired company name is free for use as a business. They can help search the company registry and see whether or not there are any companies with similar names already registered.
Check If Your Business Plan is Ready? Cost and funding.
A business plan is a document that outlines the goals and strategies of your business. It should include:
- A summary of the market you’re targeting (your niche).
- A description of how your product or service will be different from what’s already out there.
- An analysis of how much money you need to start up and run your company for at least one year. If a bank loan is needed, show them how much money they’ll get back if they give you the loan.
Register Your Business name with the CRO.
Registering your company’s name is an important step in setting up a business in Ireland. If you fail to register your company’s name and trade description, you could be sued by anyone who feels they have been affected by this failure.
To register your company’s name and trade description:
- Go online at www.cro.ie
- Complete Form 4 (PDF) (406KB) available from www.ipo.gov.ie/forms
Register for Tax
If you’re setting up a business in Ireland and haven’t yet registered for tax, it’s time to get on that. Tax registration is a separate process from company registration, but it must be completed before registering with the CRO.
- Sole traders and partnerships: These entities are required to register with the Revenue Commissioners (Ireland’s equivalent of the IRS) as self-employed individuals or businesses. The registration fee will depend on your annual income, but it’s generally less than €1,000 per year. You can do this online or by phone at any time during the year.*
- Company registration: Companies should register with their local tax office within 12 months of incorporation, which can be done either via phone or online.*
Ensure You Meet All Registration Requirements Under Planning, Public Health and Safety, etc.
The first thing to do is ensure you meet all registration requirements under planning, public health and safety, etc. You should also check with local authorities if any other government agencies need to be consulted.
If your business idea depends on a specific location or premises then you will need to make sure that the area where you want to work meets the required specifications. This could include having access to water supplies, electricity, sewerage services and telephone lines.
Open a Bank Account for the Company
Opening a bank account for your company is a very important step. Not only will it help you manage your cash flow and keep track of your expenses, but it can also provide peace of mind when making purchases on behalf of the business
It’s crucial that you open the right type of account for your business structure and needs, not just any old personal or business account because it looks good on paper!
Here are some things to think about:
- Do I need an overdraft facility? (If so, get one.)
- Will I be using this bank account to pay suppliers? (If so, ensure they offer BACS payments.)
- Would my bank waive the charges if I use them regularly? Does anyone else use this branch/banker?
If you’ve read through this checklist, you should now have a better idea of how to set up your company in Ireland. There are many steps involved but it is not too difficult if you know what to do. Hopefully, this article has given you some clarity and taken some of the mystery out of registering an Irish company or opening a bank account here.