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.
Our specialists in company formation in Ireland can help clients select the suitable type of company for their needs.
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 mattersmay 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;
• issued share capital – a portion of the authorized share capital issued to the company’s shareholders;
• 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.