What is an Irish private company limited by shares?
According to the Irish Company Act, foreign investors are allowed to open several types companies. Among these there is also the company limited by shares, which can be:
- – private;
- – public.
The main difference between the two types of enterprises is that the public entity may trade its shares on the Stock Market, while the private company may not.
Requirements to open a private company limited by shares in Ireland
The new Company Act reduced significantly the requirements for starting an Irish private company limited by shares (LTD). Under the new legislation the company may have at least one shareholder, case in which it will also be known as a single member company, and up to 149 shareholders. Private companies limited by shares may also have corporate shareholders. The liability of the shareholders will be limited to the number of shares they hold in the private company.
Starting with 2014, the Irish private company limited by shares must have at least one director who is an EU or EEA resident. However, it will be required to appoint a company secretary. The LTD does not have to state its object of activity in the Articles of Association and can conduct any type of business. The company must also have a registered address in Ireland. There are no minimum share capital requirements for Irish LTDs.
Registration of a LTD in Ireland
The first step to set up an Irish private company limited by shares is to have the Articles of Association drafted. Our specialists in company registration in Ireland can help you with the foundation documents. The second step will be selecting a business name and submit it with the Companies Registration Office. One must know that the company’s name must contain one of the following suffixes:
- – limited;
- – incorporated;
- – LTD.
Once these formalities have been accomplished an application form must be filled out and submitted with the Irish Trade Register.
The next steps will be the registration for taxation purposes and for VAT and obtaining the licenses required to start operating. Irish private companies limited by shares are required to submit audited financial records every year.
If you want to open a private company limited by shares in Ireland, you can contact our local agents for professional assistance.