A company is a legal form of business organisation which is a separate legal entity, therefore its separate and
distinct from those who run it.
At MSH Accountants we offer a robust company formation service which can help you to get set up in
a fast and efficient way, so that, your business will be up and running as soon as possible. We will offer our
professional advise you on the tax registration of the company and will complete relevant Revenue and Companies
Registration Office forms on your behalf.
While deciding what type of company to form, it may be to your interest to know that there are number of
company types and the main ones are:
The shares in a company are owned by its shareholders. If the company is a limited liability company,
the shareholders' liability, should the company fail, is limited to the amount, if any, remaining unpaid on
the shares held by them. A company is a separate legal entity and, therefore, is separate and distinct
from those who run it. Only the company can be sued for its obligations and can sue to enforce its rights.
Types of limited company
- A Private Company Limited by Shares (LTD company):
The members' liability, if the company is wound up,
is limited to the amount, if any, unpaid on the shares they hold. The maximum number of members is 149. An
LTD company can have only one director if it chooses. An LTD company does not have stated objects and can
undertake any activity
- A Designated Activity Company (DAC)
– (limited by shares). The members' liability, if the company is
wound up, is limited to the amount, if any, unpaid on the shares they hold. The maximum number of members is
149. A DAC company must have at least 2 directors. Constitution includes a memorandum and articles of
association. The memorandum will include stated objects.
- A Designated Activity Company Limited by Guarantee (DAC)
– (limited by guarantee). The members have
liability under two headings; firstly, the amount, if any, that is unpaid on the shares they hold, and secondly,
the amount they have undertaken to contribute to the assets of the company, in the event that it is wound up.
The maximum number of members is 149. A DAC company must have at least 2 directors. Constitution includes a
memorandum and articles of association.
- A Company Limited by Guarantee (CLG)
(limited by guarantee not having a share capital): The members'
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 memorandum. As a guarantee company, does
not have a share capital, the members are not required to buy any shares in the company. Many charitable
and professional bodies find this form of company to be a suitable vehicle as they wish to secure the benefits
of separate legal personality and of limited liability but do not require to raise funds from the members.
- A Public Limited Company (PLC):
The liability of members is limited to the amount, if
any, unpaid on shares held by them. It should be noted that it is unlawful to issue any form of prospectus except
in compliance with the Companies Act. The nominal value of the company's allotted share capital must not be less
than €25,000, at least 25% of which must be fully paid up before the company commences business or exercises any
Single Member Company
A single member company is a company which is incorporated with one member, or whose membership is reduced to one
person. However, the company must have at least two directors and a secretary. (unless it is a LTD company, which
can also be a single director company).
The sole member, if he/she so decides, can dispense with the holding of General Meetings, including Annual General
Meetings (AGMs). The financial statements and reports that would normally be laid before the AGM of a company
still need to be prepared and forwarded to the member. All company types can be single member companies.
In an unlimited company, there is no limit placed on the liability of the members. Recourse may be had by creditors
to the shareholders in respect of any liabilities owed by the company which the company has failed to discharge.
An unlimited company can be either public or private and must have a minimum of two shareholders.
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