Understanding a Limited Company

A Limited Company, formally known as a Private Company Limited by Shares (LTD), is the most common type of business structure in Ireland, representing nearly 90% of all registered companies. The key features of this company structure include:

• The company name must end with "Limited" (LTD) or "Teoranta" (TEO).
• Shareholders have limited liability, meaning their financial responsibility is capped at the unpaid value of their shares.
• A limited company can have a single director, and must have at least one shareholder (with a maximum of 149).
• There is no requirement for a specified authorized share capital—share capital can be unlimited.
• Companies can operate with a single-document constitution and have no specific objects clause, meaning they can engage in any lawful business activity.
• Audit exemptions are available for companies below certain size thresholds.
• Limited companies cannot engage in business as a credit institution or insurance undertaking.

Why Incorporate as a Limited Company?

Incorporating as a limited company comes with several advantages, making it a popular choice for entrepreneurs and businesses in Ireland. Some of the key benefits include:

• Limited Liability: Shareholders' liability is limited to the value of their unpaid shares, protecting personal assets from business liabilities.
• Tax Benefits: Limited companies are taxed at a corporation tax rate of 12.5%, which is often lower than the income tax rate applied to sole traders. However, taxation should not be the sole reason for incorporating, and it’s advisable to consult with a tax professional.
• Ability to Raise Finance: Limited companies can raise funds through the issuance of shares or by securing debt finance in the company’s name.
• Separate Legal Entity: A limited company is distinct from its owners, meaning it can own assets, enter contracts, and be involved in legal proceedings in its own right.
• Business Credibility: Incorporation enhances credibility with customers, suppliers, and investors, as the company must adhere to statutory filing requirements.
• Perpetual Succession: The company’s existence is not affected by the departure or death of shareholders, ensuring business continuity.

The Incorporation Process: What You Need to Know

Statutory Requirements

To establish a limited company in Ireland, certain legal requirements must be met:

• At least one director, one secretary, and one shareholder are required.
• If there is only one director, the secretary must be a separate individual.
• At least one director must be an EEA (European Economic Area) resident.
• The company must have a registered office in Ireland (a P.O. Box is not acceptable).
• The company must be engaged in economic activity in Ireland.
• Form A1 and the company’s constitution must be submitted to the Companies Registration Office (CRO).
• Beneficial owners of the company must be registered with the Register of Beneficial Ownership.
• Registration for relevant taxes (e.g., Corporation Tax, VAT, Payroll Tax) is required.

Steps to Incorporate

1. Choose Our Package: Our team will request documents (such as a passport, driving licence, or other identification) to verify your identity. 
2. Complete Online Form: Our team will organize the online registration form or assist you in filling it out. 
3. Sign A1 Application: Review and physically sign the A1 application form, then scan and upload it to your Dashboard. 
4. Certificate of Incorporation: Once approved, the Certificate of Incorporation will be emailed to you by the CRO.

Timeline for Incorporation

The entire process typically takes about 3 days:

• 5-10 minutes to complete the online form and make a secure payment.
• 1 day for your company name to be approved by the CRO.
• Up to 6 hours for us to prepare and review the A1 application.
• 5-10 days for the CRO to issue the Certificate of Incorporation under normal circumstances.

Incorporating as a limited company can be a crucial step toward protecting your assets, enhancing your business's credibility, and creating a structure that facilitates growth and financial stability.

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