Leveraging Ireland’s Startup Ecosystem: A Guide to HPSUs and Immigration Pathways

Enterprise Ireland, the national body in place to support internationally-traded professional services companies, defines High Potential Start-Ups (HPSU) as ‘businesses with the potential to develop an innovative product or service for sale on international markets and the potential to create 10 jobs and €1 million in sales within three years of starting up.’

Support for HPSU in Ireland stems from various government initiatives, including funding via Enterprise Ireland. The corporate tax rate (presently at 12.5%) is also a means of attracting HPSUs to set up and headquarter in Ireland. 

Ireland is regularly among top destinations for business lists globally and is the only remaining English speaking country in the European Union. Outside vast Foreign Direct Investment routes, Ireland has specific ease of access to the EU/EEA and Swiss markets as well as some favourable arrangements with the UK. 

Immigration pathways for startups and business owners

Employment Permits system 

Any company has the potential ability to sponsor employees to take up work in Ireland on the basis of an employment permit.

Some key steps to undertake include:

• Company formation with the Companies Registration Office 
• Registration as an Employer with the Revenue Commissioners 

Further considerations for companies hoping to establish in Ireland and hire non-EEA/UK staff include: 

• Ensuring that no more than 50% of employees are non-EEA/non-UK nationals if they intend to use the employment permits system. Save for limited exceptions, in most cases, to hire a person from outside the EEA/UK (e.g., US) to establish a business in Ireland, an EEA/UK worker should already be in situ prior to the submission of a first employment permit, even where the non-EEA employee is key to the establishment of the presence in Ireland.
• Salaries, role types, qualifications and experience must meet certain requirements depending on the permit type. 

Start-Up Entrepreneur Programme

In situations where founders wish to take up residence in Ireland to establish a corporate presence in in the country and where the business has the potential to satisfy the definition of a HPSU, the Start-Up Entrepreneur Programme (STEP) may be a viable option. 

A number of key benefits attach to the STEP pathway in comparison to the Permits pathway, namely:

1. The company does not have to be incorporated in Ireland yet, and the beneficiary of the programme (i.e., the applicant) would not need to be salaried. In other words, a founder or entrepreneur can work to put in the foundations of the company on the basis of a STEP permission, rather than having to front-load these expenses to access permits for salaried employees. 
2. If the application is successful, the beneficiaries (i.e., the applicant, their spouse and minor children), receive a high-level immigration permission allowing a great deal of flexibility. While the applicant must continue to have a day-to-day operational role in the enterprise to maintain the permission, their family members may take up work, study or start companies of their own without restriction.

Closure of Immigrant Investor Programme

While opportunities still exist for persons wishing to apply under the Immigrant Investor Programme (by donation or investment to projects already approved triaged by the Department of Justice), entrepreneurs/business owners can no longer invest €1 million into their own Irish enterprises in order to avail of the very favourable immigration permission offered under this programme. 

Requirements of the STEP 

Aside from demonstrating the HPSU nature of the business, through extensive supporting documentation, persons who wish to qualify under STEP must:

• Have access to €50,000 in investment (€30,000 for any subsequent founders included in the application);
• Be of good character; and
• Have the requisite experience to ensure the success of the startup. 

While the bar is high for businesses and entrepreneurs to establish that their enterprise will reach €1 million turnover within three years of starting up and creating 10 Irish-based jobs within the same timeframe, the benefits of succeeding under the programme for the entrepreneur and their family are significant. 

The Pivot

At times, persons may, through exploring the STEP option, decide that it is not suitable for their individual needs / their enterprise’s profile. Such persons can pivot to explore pathways utilising traditional company incorporation and employment permit sponsorship pathways.

Fragomen typically engages entrepreneurs on the basis of a scoping arrangement where we work with the entrepreneur or company to consider the best options before working towards specific immigration pathways. 

Need to know more?

For questions related to navigating the Irish immigration system as it relates to the STEP, please contact Director Claire Cumiskey at [email protected] or Manager Samantha Arnold at [email protected].

This blog was published on 18 September 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.