Private limited companies are by far the most popular company formations in Ireland. They are referred to as LTD, limited liability companies or private limited companies. Their popularity can be attributed to the fact that the Ireland Companies Act of 2014 does not restrict limited companies’ activities. They are allowed to carry out any legal business activity. As such, different trading names can be registered under one limited liability company to carry out different business activities when need arises. Moreover, limited companies are separate legal entities from their owners and hold limited liability. This means that, company shareholders are only liable to the value of the companies issued share capital.
Directors and secretary
A limited company in Ireland is required to have at least one director and company secretaries who should be two. There is no maximum number of directors that a limited company can appoint. But, experts recommend on having not more than five company directors. It is required that at least one director resides in Ireland or within the EEA (European Economic Area) failure to which the business may have to purchase a revenue bond. In the event that the limited company has more than two directors, one director can be listed as the company secretary. The company secretary should be a person with full knowledge of limited company laws in Ireland and can effectively carry the duties of a company secretary. Note that, a corporate entity can be listed as the company secretary.
Registered office address
A registered office address is the location where the company registration office correspondence and formal legal notices will be sent. An Irish limited company address can be located anywhere in Ireland as long as it is a valid physical address; post office box addresses are not allowed. However, a residential address can also be used the company registered office address so long it is visible on public records.
Company share capital
Irish limited companies are required to specify their authorised share capital. However, limited companies have the option of having an uncapped feature that leaves it in a favourable position should directors need to make changes in the share capital. An authorised share capital is the maximum amount of shares that can be issued over a company’s lifetime. It is not recommended to have an authorised share capital but if desired, a share capital value of €100,000 divided into 100,000 ordinary shares valued at €1 each. However, the minimum share capital should not be less than €100.
Company shareholders
Company shareholders are directors, corporate entities and individual investors. Before registering a limited company in Ireland, you must specify company shareholders and the amount of shares held by each shareholder. As a legal requirement, issued share capitals above €1000 can be paid into corporate bank accounts before being directed to the business. Shares under €1000 can be held in cash.
Summary
Registering a limited company in Ireland can be easy and straightforward when you contract the services of a licensed formation agent such as Irish Company.
