Types of Irish companies - described by our Ireland company formation agents
One of the best advantages of
investing in Ireland refers to the
variety of business structures that can be registered in this country. Foreign investors may opt for
private or public companies limited by shares,
companies limited by guarantee with or without a share capital,
partnerships and
sole traders. However, before
registration it is advisable to keep in mind all the characteristics and requirements for each
type of Irish company, especially when it comes to the
share capital that must be submitted when
incorporating the company.
The
registration of a company falls under the
Irish Companies Act. The
Commercial Law establishes a set of regulations concerning several requirements referring to
company management,
company secretary and
share capital.
While there is
no maximum limit to the
share capital requirement in Ireland,
public limited liability companies are required to
deposit a minimum share capital of approximately
EUR 25,000, out of which
25% must be paid before commencing any commercial activity. Compared to the
public company, there are
no minimum share capital requirements for
private companies in Ireland.
However, when
registering a company,
our team of consultants in Ireland company formation matters
may advise on an
amount to be deposited as
share capital for
private companies. Investors must also know that the
share capital must be stated in the
company’s memorandum and articles of association. Also, every time the
share capital is altered, the
Irish company’s articles of association must be
amended. The investors may
increase the value of the
company’s minimum share capital, and with each
allotment of shares, the
Companies Registration Office (CRO) must be
notified.
The notification has to be sent to the CRO by filing the Form B5 in a period of one month since the company’s capital was modified. The document can be used only when the company increased its minimum share capital.
In the case in which the businessmen will reduce the company’s share capital and any other types of assets related to its capital, it is necessary to file the Form (B7), as prescribed by the Companies Act 2014, Section 83.
Share capital requirements for companies limited by guarantee in Ireland
Irish companies limited by guarantee may be
registered with or without a share capital. The main difference between
companies limited by shares and
companies limited by guarantee in Ireland lies within the
liability of the members.
Our team of specialists in Irish company formation can provide further informaiton on the
capital requirements available for this
business form.
The
shareholders or
members of companies limited by guarantee in Ireland must
guarantee to contribute with a
nominal amount of EUR 1 in case of
insolvency. Even if there are
no special requirements when it comes to the
share capital, it can be
raised at any time and all modifications must be stated in the
articles of association of the company. Following these alterations, the
company’s representatives must also
notify the Irish Trade Register.
The company's owners are also its shareholders. The distribution of the issued shares should reflect the proportionate ownership of the company. At the time of establishment, the shareholders of the firm must be at least 18 years old. So, if you want to set up a company in Ireland, you can get in touch with us for guidance on shareholders’ duties and rights.
Types of share capital in Ireland
Besides the share capital, the commercial legislation prescribes the following:
• authorized share capital – it represents the total nominal value of the shares issued by the company;
• called-up share capital;
• paid-up share capital.
It is important to know that, following the provisions of the Companies Act 2014, a company limited by shares in Ireland is no longer required to have a specific amount of authorized share capital.
If you want to
set up a company and need details on the
share capital or management requirements you can
contact our experts in company formation in Ireland. They can help you set up a company and a
bank account in Ireland.
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