How Do I Register as a Sole Trader in Ireland?

By Shannon Power, 29^th August 2025

In recent years, people have developed an increasing desire to become self-employed and have work independence. As a result, many aspiring business owners are opting to register as Sole Traders in Ireland.

The process for registering as a sole trader in Ireland may seem overwhelming at first, but once you have a deeper understanding of what exactly is involved and how to get there, you can succeed anywhere!

In this guide, we will walk you through the basics of being a Sole Trader, the benefits of registering as one, and how to stay on top of your compliance.

What is a Sole Trader?

A Sole Trader is a business structure where an individual runs their business independently under their own name, rather than as a separate company. Unlike limited companies, sole traders are personally responsible for all aspects of their business, including any debts and liabilities.

This structure is usually attractive for freelancers, consultants, and small-scale entrepreneurs because it allows you to focus on your business without having to deal with complex legal formalities.

Pros of Being a Sole Trader:

• Full Control: As a sole trader, you have complete authority over all business decisions, without the need to consult directors or shareholders. Registering as a sole trader in Ireland also means you don’t have to file accounts with the Companies Registration Office (CRO)
• Easy Setup: Registering as a sole trader in Ireland is a simpler and quicker process compared to incorporating a company, allowing you to save time and reduce stress.
• Cost-Effective: Running a sole trader business generally involves fewer costs than starting and managing a limited company
• Tax Efficiency: Sole Traders benefit from simplified tax filings compared to limited companies. Instead of paying corporation tax, you only pay personal income tax on your business profits, which includes Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).
• Flexibility: You have the freedom to scale up or down your business without the restraints of a rigid corporate structure.

Cons of Being a Sole Trader:

• Unlimited Liability: If your business has a low profit year or runs into debt, you are personally responsible for all finances.
• Higher Tax Rates: Depending on your income, your personal rate of income tax may become higher than the corporation tax rate you may be paying as a limited company. If you anticipate earning more money than you need to take as a salary, it may be more advantageous to set up a limited company. This way, there are more tax-efficient methods available for paying yourself as a Limited Company Director.
• Business Credibility: Some clients and investors may prefer working with limited companies, as they can be seen as more credible and trustworthy, no matter the quality of the business.

What are the Requirements for Registering as a Sole Trader?

Before you can get started, there are a few decisions you need to make to ensure you meet all your Sole Trader requirements.

Choosing and Registering a Business Name:

If you plan to trade under your own name (i.e. John Smith), then there is no need to register a business name.

However, if you wish to operate your business under any name different from your name, you are legally required to register your business name with the Companies Registration Office (CRO).

You can register a business name yourself using a Form RBN1 (Business Name Registration Form) through the CORE.ie site, or you can enlist the help of a professional agent, such as Company Bureau, to make the process easier.

Take a look at our Business Name Registration Services here!

There are a few items of information that you will need to provide to register your business name, including:

1. Business name – Your chosen name, which must comply with the CRO business name guidelines.
2. Nature of the business.
3. Principal place of business – You must have an Irish business address before registering a business name in Ireland. If you don’t already have one, consider our Registered Office Service.
4. Date of business name commencement.
5. Details on the proprietor.

Registering for the Correct Taxes:

Income Tax

As a Sole Trader, you are required to register with Revenue for tax purposes. Doing so ensures you can file the necessary tax returns and meet all your financial obligations in regards to paying tax.

You can register for Income Tax on the Revenue website yourself by downloading the TR1 Form (tax registration form for Sole Traders), or you can register for tax along with your business name registration with our Sole Trader Business Name + Income Tax Registration Bundle.

It is also important to note that to be able to register with Revenue as a Sole Trader, you must have a Personal Public Service Number (PPSN) or an Identified Person Number (IPN). If you do not possess either of these, we can help you obtain one using either of the options below: