There are essentially 5 different types of companies that you can form in Ireland, depending on your company’s purpose.
Private Limited Company
Private limited companies make up the majority of companies formed in Ireland. This types provides limited liability, which means that the company has a separate and distinct legal personality. Therefore, should the company fail, the shareholders’ liability is limited to the amount remaining unpaid on the shares held. This means that only the company is liable for a lawsuit. There must be at least one director and one secretary, and there must be at least one or more shareholders.
Company limited by guarantee, without a share capital
Companies limited by guarantee, without a share capital are often used to set up charities, sports club or trade associations. (The Revenue Commissioners authorise charitable status). This is popular as it allows the benefits to be of a separate legal personality to be secure with limited liability, but they do not need to raise funds through members. The members liability is limited to the amount they contribute to the assets of the company. Therefore, if a guarantee company does not have a share capital, the member are not required to buy shares.
Public Limited Company
This company type must have a minimum of seven members. The liability in this company is limited to the amount that is unpaid on the shares held by them. The nominal value of the company’s allotted share capital must not be less than €38,092.14, at least 25% of which must be fully paid up before the company commences business.
Unlimited Company
In this company there is no limit placed on the liability of members. There must be a minimum of two shareholders in this company if private, but if public, there is a minimum of seven shareholders. In respect of any liabilities owed by the company, which the company is unable to settle, creditors of the company can seek recourse from the shareholders.
Single Member Company
This is a private company limited by shares incorporated by one member. Although there is only one member, the company must have two directors and a secretary. The sole member can disregard General meetings (including Annual General Meetings(AGM)) but modifications must then be made according to the European Communities (Single-Member Private Limited Companies) Regulations 1994.
We can provide you with more information regarding your company’s requirements, call us anytime to get more information or to discuss your company’s specific requirements.