Company Formation Ireland



Opening a Sole Trader in Ireland

Updated on Tuesday 31st March 2020

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Opening-a-Sole-Trader-in-IrelandBecoming a sole trader in Ireland

Foreign entrepreneurs can start a business in Ireland by opening a company, forming a partnership or as a self-employed individual. The simplest form of doing business in Ireland is by becoming a sole trader. Opening a sole trader in Ireland is quite simple and easy, but still requires attention especially when it comes to the taxation system. Before registering as a sole trader it is best to verify with Irish experts in company formation what all the requirements are.

Registration as sole trader in Ireland

Unlike the registration of a company in Ireland which implies several steps, the self-employed individual can carry out their business by using their own name. Therefore the first step towards becoming a sole trader is to register the business name with the Irish Companies Registration Office by filing the RNB1 Form. Business name registration can also be done online in Ireland. The Irish Trade Register will issue a Certificate Business Name which the sole trader must display at their place of business. It is also advisable to open a business account with an Irish bank.

 For help with the business name registration procedure you can rely on our experts in Ireland.

Tax registration for Irish sole traders

The second step towards becoming self-employed in Ireland is to register for taxation purposes. Registration for the income tax must be done with the Revenue Commissioners as a self-employed sole trader. In order to do that one must file the TR1 Form which can also be used to register for the value added tax (VAT). Once the application is processed the sole trader will receive a notice of confirmation.

The Irish sole trader must also pay a Class S PRSI (Pay Related Social Insurance) contributions. The taxes paid by an Irish sole traders fall under the self-assessment system and they are required to maintain all records on purchases and goods, received and spent amounts in order to fill out their annual tax returns. However, Irish sole traders may also qualify for different tax deductions and for the Startup Refunds for Entrepreneurs scheme.

For information about the advantages of being a sole trader you can contact our specialists in company incorporation in Ireland.


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Colleagues at IrelandCompanyFormation.com helped my clients expand their business in Ireland. I recommend them to any investor interested in moving a business in Ireland or starting a new company in this country.

Mihai Cuc, Partner of MHC Law Firm

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