
The
Companies Act, the main legal document which prescribes the types of legal entities that can be registered in
Ireland, was modified in 2014 and became applicable starting with June 2015. Under the regulations of the
new Companies Act, foreign and local investors may set up
new types of companies, including the
company limited by guarantee (CLG). Investors interested in starting the procedure of
Irish company formation for this
type of company may register the business form with just
one member and minimum two directors.
Our team of company formation agents in Ireland can offer legal representation during the
registration procedure, and can offer advice on other requirements related to the
Irish CLG.
Legal aspects related to the Irish CLG
Under the regulations of the
Companies Act (Part 18), the
Irish CLG is not required to have a
minimum share capital. In order to
open a company in Ireland as a
CLG, the founders do not have to own shares. However, they will be liable for the
company’s debts in the amount they have contributed to the company’s assets.
As a general rule, the company limited by guarantee in Ireland is incorporated for non-profit purposes and it is a recommended legal entity for the following:
• charities;
• educational purposes;
• sports clubs;
• associations;
• professional bodies.
Main incorporation requirements for the Irish CLG - presented by our Ireland company formation experts
As mentioned above, the
company will be founded by members, not
shareholders. The legal requirements specify that the
company ought to have at least one member, but there aren’t any specifications for the maximum number. Still, during the formalities for the
company registration in Ireland, the founders are required to mention in the
company’s statutory documents the total number of members the legal entity will have.
At the same time, the company does not have to raise funds from the members, who benefit from limited liability in the situation in which the company will incur various financial difficulties.
The
incorporation of the company starts by registering the legal entity with the
Companies Registration Office (CRO) and investors may receive further assistance on other compulsory steps from
our team of representatives in company incorporation, who can advise on the
tax regulations available for this
business form.