Types of Limited Companies

There are four main types of limited companies from which to choose. The structure of each limited company is as follows:

Private Limited Company - Private company 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 50. This is the standard limited company, the most common type of limited company structure used by the majority of small to medium sizes business concerns and the limited company structure formed "as new" by company promoters when starting up in business.

Used : Generally

The most commonly used Limited Company is that of the Private Limited Company.

A company limited by guarantee not having a share capital:

As this is a public company, there must be a minimum of seven members. 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.

If a guarantee company does not have a share capital, the members are not required to buy any shares in the company. This type of limited company is generally favored by charities, professional bodies, clubs, sporting associations etc. This company structure is the most suitable vehicle for such entities as the benefits of separate legal personality and of limited liability without the requirement of the members to raise funds is clearly defined.

Used: by Associations, Charities, Clubs, Apartment Management Companies etc.

A company limited by guarantee having a share capital:

As will be a private company if the maximum number of members is 50. 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.

Public limited company:

The "PLC" as it is more commonly known must have a minimum of seven members. Their liability in this type of limited company 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 Acts 1963-2009. The nominal value of the company's allotted share capital must not be less than €38,092.14, at least 25% of which must be fully paid up before the company commences business or exercises any borrowing powers.

BUSINESS & COMPANY FORMATIONS

Types of Limited Companies

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