If you are thinking of starting a business in Ireland, it is important to think about the pros and cons of setting up a limited company. This article from adamslaw.ie provides information only and it is important to get legal or financial advice before making a decision.
Limited companies explained
A limited company is a type of company that is separate from its shareholders. This means that the shareholders are not responsible for any debts or other problems the company may have. This type of company is common in Ireland.
There are benefits to setting up a limited company, including:
– The limited liability of shareholders protects their finances if the company goes into debt or is sued.
– A limited company can be more tax-efficient than a sole trader or partnership, as profits can be distributed among shareholders in a way that minimises personal tax liability.
– A limited company can help to build trust and credibility with customers, suppliers, and other businesses.
There are some drawbacks to setting up a limited company
These include:
– Complying with company law can be a significant administrative burden.
– There may be less flexibility in how profits are distributed among shareholders than in other business structures.
Steps to setting up a limited company
Once you have chosen a name for your company, you will need to appoint at least one director. This person must be over 18 years old and cannot have an undischarged bankruptcy. If you are the only director, you will also need to appoint a company secretary. This person can be one of the directors, but must be 18 years old or older. The company secretary ensures that the business follows all the rules and regulations. You will need to have a registered office address in Ireland. This is where all the official company letters will be sent. If you are a resident in Ireland, you can use your home address. Once you have everything in order, you can then register your company with the Companies Registration Office.
Once you have decided to start your own company, there are a few important steps you will need to take in order to get everything up and running.
One of the most important things you will need to do is file various documents with the Companies Registration Office, including the Constitution, which outlines how the company should be run, and the Form A1, which is the application to register the company. Once your company is registered, you will also need to obtain a Tax Registration Number (TRN) from Revenue. In addition, you will need to open a bank account for your company.
This account should be in the company’s name and have the company’s Irish address. Finally, if you want to be a shareholder, you will need to issue shares. This involves writing down each shareholder’s full name, residential address, and the number of shares they own. By taking care of these important details, you can ensure that your new company is off to a strong start.
The Authorised Share Capital of a company is the maximum number of shares a company can issue. The Issued Share Capital is the number of shares that have been given to shareholders and have been paid for.
If you become a partner with other people, it is important to get legal advice. This will help protect your rights as a shareholder if the business is ever sold.