If you set up your business as a limited company it is a separate legal entity from shareholders and directors.  The assets of the company are the property of the company and not the shareholders.  Therefore, any debts of the company are the responsibility of the company and not the shareholders.

The Companies Act 2014 introduced a number of different types of Companies in Ireland;
  1. Company Limited by Shares (LTD)
  2. Designated Activity Company (DAC)
  3. Company Limited by Guarantee (CLG)
  4. Public Limited Company (PLC)
  5. Unlimited Company
Company Limited by Shares (LTD)

LTD’s are the most popular type of companies incorporated in Ireland. This is a company limited by shares.  This company type does not have an objective clause in it’s constitution so can trade in any type of activity.  LTD’s can have only one director but they must have a separate company secretary.

Designated Activity Company (DAC)

DAC’s are companies incorporated to complete a specific purpose and therefore wish to restrict the activities they can carry out.  They may also carry out specific trades that fall under regulation.  This company type must have a minimum of two directors.

Company Limited by Guarantee (CLG)

CLG’s are usually non profit making companies such as Charities, Trade Unions or Clubs.  They have no shareholders or share capital.  They must have a minimum of two directors and one member.  This member must agree to contribute a minimum of €1 to the company in the event of it winding up with debt.

Public Limited Company (PLC)

PLC’s are companies listed on the stock exchange.  The must have a minimum of two directors and a minimum issued share capital of €25,000.

Unlimited Company

Unlimited Companies are the least popular type of company incorporated in Ireland.  They are companies with no limited liability.  They must have at least two directors and one member.

Should you wish to contact us regarding your business, call us on 01 539 7999 or email info@itasaccounting.ie