Supports - The Basics
Transforming. Supporting. Connecting.
Starting a Tech Company: The Basics
Whether you’re building an app, launching a SaaS platform, or creating the next big AI tool, choosing the right business structure is one of your first big decisions.
1. Sole Trader vs Private Limited Company
Sole Trader
- What it is: You run the business in your own name.
- Tax: All profits are taxed as personal income.
- Risk: You’re personally liable for debts — meaning your own assets could be at risk.
- Best for: Freelancers, side projects, or early testing before taking on outside investment.
Private Limited Company
- What it is: You run the business in your own name.
- Tax: All profits are taxed as personal income.
- Risk: You’re personally liable for debts — meaning your own assets could be at risk.
- Best for: Freelancers, side projects, or early testing before taking on outside investment.
Tech start-up tip: Investors almost always prefer to invest in a limited company — it’s easier for them to take shares and protects everyone’s legal position.
2. Pre-Incorporation Checklist
Before you set up your limited company, you’ll need:
Registered Office
A physical address in Ireland (not a PO Box). Many start-ups use a professional address service for privacy and credibility.
Company Secretary:
Responsible for legal filings and company records. If you’re a solo founder, outsource this role to a professional in your first year.
Shareholders:
The company owners. Can be just you or multiple people.
Directors:
People legally responsible for running the company. You can be the sole director if you have a separate company secretary.
Company Constitution:
Your “rulebook” for how the company operates. The default CRO version is minimal; a customised one can help avoid problems later.
3. Incorporation Process
File Form A1 with the Companies Registration Office (CRO).
Decide on your share structure carefully — this will impact future fundraising.
Avoid giving away too many shares early, and set a low par value (e.g. €0.01) for flexibility.
Tech start-up tip: If you plan to apply for Enterprise Ireland’s Pre-Seed Start Fund, make sure your share structure is investor-friendly from day one.
4. Post-Incorporation Obligations
Once registered, you must:
Maintain Legal Registers (Directors, Members, Company Secretaries).
Issue Share Certificates to shareholders within 2 months.
File Beneficial Ownership details within 5 months.
Register for tax (corporation tax, VAT, employer taxes if applicable).
File your first annual return exactly 6 months after incorporation — late filing can cost you your audit exemption for 2 years (a €4,000+ problem).
5. Essential Early Agreements
Founders Agreement: Covers roles, decision-making, equity vesting, and what happens if someone leaves.
IP Assignment Agreement: Ensures your company (not a contractor) owns all the code, designs, or creative assets.
Tech start-up tip: If you hire a developer on Upwork or Fiverr and don’t have an IP agreement, they could legally own your code.
Where to Get Help
- Cavan Digital Hub: Workspace, community, and tailored start-up support.
- Local Enterprise Office (LEO) Cavan: Advice, grants, and mentoring.
- Enterprise Ireland: Funding and accelerator programmes for high-potential start-ups.
- Furthr: A vibrant start-up community offering mentoring, networking events, and connections with investors to help tech founders grow and scale.
- New Frontiers: Ireland’s national entrepreneur development programme, delivered locally by Dundalk Institute of Technology (DKIT), providing expert mentoring, training, and funding opportunities to accelerate your tech start-up.
- National Enterprise Hub: A government-supported initiative offering dedicated start-up supports, co-working spaces, and expert guidance to entrepreneurs across the Midlands and Border regions, including Cavan.
- Professional services: Company formation agents, accountants, and lawyers specialising in start-ups who can save you time and costly mistakes.