Some 135 new businesses were registered every day last month, while there was also a 40pc drop in insolvencies, new figures show.
Business experts say the dramatic increase in start-ups compares favourably with May 2014 and is a sign that the "economy is on a consistent road to recovery".
In total, there were 3,653 new start-ups recorded in the period May 1 to May 27, which works out at 135 new enterprises every day.
This represents a 24pc rise in start-ups compared with the same period 12 months ago.
The professional services industry was the busiest sector and accounted for nearly a third of all new start-ups.
Wholesale and retail accounted for 10pc of all new enterprises, ahead of social and personal services (9pc).
The construction and hospitality sectors posted significant recovery rates, with these industries showing start-up increases of 15pc and 27pc respectively.
Unsurprisingly, Dublin remains the most popular area for new businesses, with the capital home to half of all start-ups in May.
However, market experts Vision-net.ie, who conducted the analysis, say a 71pc rise in start-ups in Limerick and a 32pc rise in Cork "indicate that business environments are now becoming less hostile outside the capital city".
"It bodes well for a resurgence within our regional business centres," said Vision-net.ie managing director Christine Cullen.
The figures also reveal a 38pc drop in insolvencies compared to the same period in 2014, with just 79 recorded in total.
The construction industry saw a 48pc decrease in insolvencies, while the professional services posted a 55pc drop.
Wholesale and retail businesses accounted for 16.5pc of all insolvencies, followed by the hospitality sector on 15pc.