Setting up a company in Ireland – what company type best suits your requirements?

Setting up a company in Ireland – what company type best suits your requirements?

June 12, 2020

Most people only ever come across the more common types of company, being a private limited company or a public company, but there are more and they can generally be classified into different types depending on their particular mode of creation / incorporation, the liability of any members and the number of members.

The most common types of companies found in Ireland are listed below. We have some basic information on each in this article. For further information on each of the registered or incorporated company types click the link to open a factsheet on each.

Company law company types

Types of Company based on their mode of incorporation

Companies can be classified in broad terms into three types based on whether they are created by a Special Act, Special order or are registered by way of an application to the Companies Registration Office.

Royal Chartered Companies

A Royal Chartered Company is one created by Royal Charter of the UK Crown. This means they are granted specific powers or rights by a monarch or by special order of a King or Queen.

A number of Irish institutions were established by or received royal charters prior to Irish Independence. These are no longer under the jurisdiction of the British Privy Council and their charters can thus only be altered by a Charter or Act of the Oireachtas (Irish Parliament).

Trinity College Dublin is a well-known institution which was originally founded by Charter of Queen Elizabeth I in 1592.

The Campanile of Trinity College

Statutory Companies

Statutory companies are those which are incorporated by means of a special act or statute passed by a state legislature (Parliament) which in Ireland is the Oireachtas.

Examples of Irish state bodies are the:

  • IDA (Industrial Development Authority);
  • ESB (Bord Soláthair an Leictreachais being the Electricity Supply Board); and
  • RTE – (Raidió Teilifís Éireann, being Radio and Television of Ireland)

Registered or Incorporated Companies

All other companies which are incorporated in Ireland are incorporated under the Companies Act 2014 passed by the Oireachtas or its earlier equivalent acts.

These companies only become into existence after the appropriate corporate documentation has been filed with and approved by the Companies Registration Office in Dublin.

Leinster House - Company Law

Private Limited Company

Is the most common form of company in Ireland and through which assets are held or trades undertaken.

A private limited company, whose corporate name ends with the word “Limited” or suffix “Ltd” or in Irish “Teo” (teoranta), is one where the liability of a member (otherwise known as a shareholder) to claims of company creditors when a company is wound up (liquidated) is limited to the amount, if any, unpaid on the shares registered in the member’s name at the relevant time.

A private limited company may have only one member, but cannot have more than 149.

See our Factsheet for more information

Designated Activity Company

First introduced under the Companies Act 2014 a Designated Activity Company (“DAC”) is:
a private company limited by shares with the capacity, including the power, to do only those things set out in its constitution or
a private company limited by guarantee and having a share capital with the capacity, including the power, to do only those things set out in its constitution.

All Designated activity companies’ names shall end with ‘Designated Activity Company’ or “Cuideachta Gníomhnaíochta Ainmnithe”. There is an exception to this as there is a power to dispense with DAC in the name of charitable and other companies under section 971 of the Companies Act 2014. This exemption refers to not-for-profit companies only.

See our Factsheet for more information

Company law gavel

Public Limited Company

Public limited companies, whose corporate name ends with the suffix “plc” or in Irish “cpt” (cuideachta phoibli theoranta), are generally larger corporate bodies or those seeking to be publicly listed on a recognised stock exchange. Such companies are required to have an allotted share capital of €38,092 of which 25% or more must be paid up.

A public limited company must have a minimum of 7 members, but is there is no maximum.

See our Factsheet for more information

Unlimited Companies

An unlimited company can either be a private or public company. A private unlimited company, whose name ends with the suffix “ULC”, must have a share capital whilst that of a public unlimited company can have either have a share capital (in which case its name ends with the suffix “PUC”) or have no share capital (in which case its name ends with the suffix “PULC”).

Unlike a limited company the members of an unlimited company are liable to contribute to the assets of the company an amount sufficient to pay all of the debts and liabilities of the company as well as any costs, charges and expenses of its winding-up and for the adjustment of the any contributions of any members amongst themselves.

See our Factsheet for more information

Companies Limited by Guarantee

In the past Irish companies which were limited by guarantee could be incorporated with or without a share capital.

Only companies now limited by guarantee and having no share capital, whose name ends with the suffix “CLG”, can be incorporated. Such companies have members whose liability is limited to the amount they have undertaken to contribute to the assets of the company, in the event it is wound up, not exceeding the amount specified in the company’s Memorandum and Articles of Association.

See our Factsheet for more information

 

If you would like to discuss setting up a company in Ireland then please contact me at:

Richard Windrum

T: +353 42 9339955
E: richardwindrum@fdw.ie

 

Disclaimer

This overview is for guidance purposes only.

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