What company types are there in Ireland?

What company types are there in Ireland?

There are a number of company types in Ireland. Essentially the most important four company types are as follows.

Private limited company by shares (LTD)

A Private Limited company by shares (LTD) is the most common company type incorporated in Ireland for private business. This company type requires a Director and one other person or legal entity to be Secretary. They cannot be the only person but there can be two Directors and one of them can also be Secretary. There must be one shareholder and up to 149 shareholders. The shareholders can be legal entity like another company or a person. This company type provides limited liability to its members. In case of debt on insolvency, the liability of the shareholders is limited to the amount remaining unpaid on the shares held by them. Personal assets of directors and shareholders are not at risk where the company has been compliant. In case of insolvency, the company assets are used to pay outstanding debt where possible. This company type can do away with holding an Annual General Meeting if it is agreed by the members to do so. This company type is not required to have an authorized share capital.

This company type was introduced with the consolidation of the companies act to the 2014 act. The predecessor of this company type before the 2014 act has an “Object of the Memorandum of association” outlining the activity of the company. The act was consolidated to enable Ireland to become one of the easiest places in the world to do business.

Company Limited by Guarantee (CLG)

A CLG company is usually reserved for Charities and clubs, trade associations and non-profit organizations, where there is no requirement for share capital and corporate protection is required. We produce two main constitutions for this company type. One where the organization wishes to register for Tax Exemption, and another where they do not. This company type can also be used for property management companies for the management of common areas and multiple unit properties. A company limited by guarantee is required to have two Directors and one of those can be a Secretary.

Designated activity company (DAC)

As suggested by its name, a designated activity company has a specific object within its Memorandum of Association outlining its activity unlike a Private limited company by shares. This new type of company created another option for entities where the object of the organization was required to be designated and controlled. Unlike a LTD it cannot dispense with the requirement to hold an Annual General Meeting. This company type does not have a Constitution like a LTD but has a Memorandum and articles of association. It must also have an authorized share capital. DAC format is popular where Shareholders wish to have restrictions on a company, or where organizations fall under legislation that require it like Financial institutions and insurance providers.

Public Limited Company (PLC)

A public limited company is generally incorporated where it intends to be listed on the stock exchange. A PLC must have 2 Directors as a minimum. It also cannot dispense from holding an annual general meeting. The company must have an issued share capital of €25,000 and it must have 25% of it fully paid up before the company can commence business.

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