Opening a sole proprietorship in Ireland

Opening a sole proprietorship in Ireland

Updated on Tuesday 21st February 2017

Rate this article

based on 2 reviews.

Opening-a-Sole-Proprietorship-in-Ireland.jpgA sole proprietorship is the simplest form of business, set up in the name of the owner. The sole proprietorship has become very popular, as more and more persons are interested in working in their own name, rather than being employed in a company. The sole proprietorship is not a separatelegal entity from its owner. If you are interested in registering a sole proprietorship in Ireland, our Irish law firm can provide you with information on the subject. 

Sole proprietorship in Ireland  

The process of setting up a sole proprietorship is relatively simple; you can start the business by using your name, but you can also use a business name. If you may choose to use a business name, you will have to register the name at the Companies Registration Office; after the registration, you will receive a Certificate of Business Name. The Irish legislation states that you should open a new bank account for your business and for this procedure it is necessary to have a Certificate of Business Name

We invite you to watch our short video about the process of opening a sole proprietorship in Ireland:


Taxation of a sole proprietorship in Ireland

It is necessary to register the sole proprietorship for taxation with the Office of the Revenue Commissioners in Ireland. The taxation of a self-employed person is done through the self-assessment system. According to this, you will have to pay a Preliminary Tax, which has to be paid no later than 31st of October; our lawyers in Ireland can offer you more details about taxes paid under the self-employment system.
All sole proprietorships in Ireland are required to keep the records of all services or goods sold or purchased on the market and the sum of money received or paid. A sole proprietorship should also register for VAT only in the following situations:
the annual turnover is above EUR 75,000 (for goods and products);
the annual revenue is above EUR 37,500 (for services).
You will also have to register for PRSI (Pay Related Social Insurance); sole proprietorships PRSI contributions belong to the Class S PRSI, which represent a limited tax of social contributions. As a general rule, the PRSI are paid at the rate of 4% on the annual income, but if the income is lower than EUR 5,000, you are exempt from paying any social contributions
If you need further information on the sole proprietorship in Ireland, our Irish lawyers can offer you legal assistance on this matter.