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Open a Private Limited Liability Company in Ireland

Updated on Friday 13th January 2017

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Types of limited companies in Ireland 

The Irish Companies Act underwent significant changes in 2014. These changes reflected into the introduction of several new types of limited liability companies in order to provide more flexibility to foreign investors who want to open a business in Ireland. The main types of Irish limited liability companies are:
 
- private companies limited by shares (LTDs);
- designated activity company (DAC) limited by shares;
- designated activity company limited by guarantee;
- company limited by guarantee (CLG);
- public limited company (PLC).
 
Businessmen who are interested to find out more information on the limited liability companies can watch the video below related to the registration an Irish private limited liability company:
 
 

 
Our company formation experts in Ireland can provide assistance for the registration procedure of any of the above mentioned companies.
 
An important detail related to the Irish Companies Act 2014 is that it represents the largest legislative document registered in Ireland, as it contains 1448 sections. The Act became applicable in Ireland starting with 1st of June 2015. 
 
The document provides a comprehensive image for the procedure of company formation in Ireland, for the rights and obligation the company’s directors must exert, but also provisions related to the company’s secretary.  
 

Company formation requirements for limited liability companies in Ireland 

 
The new Commercial Code does not impose a minimum share capital to private limited liability companies in Ireland. Only public limited companies are required to have a minimum share capital of 25,000 euros of which at least 25% must be deposited before the company starts operating. In the case of private limited liability companies, the members’ liability will be limited to the amount of the shares they own, in the situation in which the Irish company is closed down. Other requirements are:
 
- private and designated companies may have a maximum number of 149 shareholders;
- the Irish LTD company may have only one director;
- the DAC limited by shares and by guarantee must have at least two directors.
 
Foreign businessmen who want to open a company in Ireland must know that the registration of a DAC company requires as a statutory document a constitution. Mot of the legal entities are incorporated based on the memorandum and the articles of association
 
The constitution should provide the following information, as prescribed under Chapter 2, section 19
 
the company’ name;
its business form;
information on the liability of the shareholders;
the minimum share capital that must be deposited. 
 
At the same time, the Act provides another option related to the company’s capital, in the sense that the capital is not directly stated, but that it will be divided into shares with a fixed value, at the moment when the company is registered.  
 
At the same time, the Act provides new regulations related to the manner in which the private companies in Ireland must keep their accounting records.
 
It is also important to know that the company’s secretary should have sufficient skills in order to receive this function within the company’s structure.  
 
Investors interested in receiving additional information about the new Commercial Law 2014 can find out more from our team of company formation specialists in Ireland.

 

Registration of private limited liability companies in Ireland 

 
In order to register a private limited liability company, the founders or their representatives are required to file the company’s constitution with the Companies Registration Office in Ireland. The new Companies Act specifies that private limited liability companies are no longer required to draft the memorandum and articles of association when forming a company in Ireland. Also, the articles of association are no longer required to contain the object of activity of the company. The incorporation procedure has also been simplified, all documents and forms being submitted online.
 

Features of an Irish private limited liability company 

 
Persons interested in opening a company in Ireland should know that the private limited liability company is allowed to have only one director in the case in which he or she can’t have the function of a company’s secretary. At the same time, the directors must have at least 18 years old in order to have this function in the company
 
Investors interested in setting up a business in Ireland as a private limited liability company should know the documents of the company do not have to state the activities carried out by the future business. 
 
Just like in other European jurisdictions, such as Norway, the private limited liability company is the most common type of legal entity chosen by local and foreign investors for incorporation in Ireland; an important aspect is related to the fact that the management of the company is required to submit annual returns every year with the Companies Registration Office, even if the business had no financial activities. 
 
Under the new Company Act, the mergers and acquisitions performed by private companies are no longer required to obtain a court approval. 
 
In the situation in which a private company in Ireland must be shut down due to various reasons, the new Act states better provisions, regulating the relations between the company’s members and creditors. 
 
For complete information about registration fees for private limited liability companies, please address to our consultants in company incorporation in Ireland. If you are interested in opening LLCs in other countries, such as Portugal, Liechtenstein and Montenegro, we may help you with information about our local partners.
 

 

Comments

  • Angus 2016-03-30

    The Companies Act 2014 had a powerful impact over the business environment in Ireland. I believe that the positive financial results obtained by Ireland in 2015 and 2016 are also an effect of the new types of companies available for local and foreign entrepreneurs.

  • Eddy 2017-01-10

    The new Companies Act does offer a more flexible way of doing business, which should increase tha participation of young entrepreneurs in the business environment.

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