Important benefits and facts to know:
Operating as a limited company often gives suppliers and customers a sense of confidence in a business, and, quite often, larger organisations, in particular, will prefer not to deal with non-limited businesses. Also, many of the costs associated with managing and operating a limited company are no longer much greater than with a non-limited business. In general terms, at least from the perspective of taxation and accountancy, changes to legislation over the last few years have meant much lower costs associated with limited companies. However, in the case that you decide to trade as a partnership or as an individual, the creditors can claim any, and all, property in order to satisfy the debt that may exist. In this situation, bankruptcy may be a threat, and an individual who becomes bankrupt due to insufficient funds is forbidden to start another business or to become a director of a limited company. Regarding selection of a limited company name, the formation of a limited company is one simple and low cost method of protecting a business name; in fact, many clients incorporate companies in anticipation of future development of new businesses, or in order to protect the limited company name of an existing non-limited business for the future. No two limited companies can exist with exactly the same name.

In summary, the main aspects of Irish limited companies to remember are:

Setting up a limited liability company offers just that: limited liability.
There may be a greater degree of business credibility of trading through a limited company.
Ownership of a limited company can be spread over a greater number of people.
Shareholders in a limited liability company are only liable to lose the share capital to which they subscribe.
The rights of shareholders are normally clearly defined and protected.
Employees can acquire shares.
A company is a legal form of a business organisation, which is classed as a separate legal entity and, therefore, is separate and distinct from those who run it; the company, and not the individual shareholders, is the appropriate person to be sued in the event that unpaid debts are incurred by the company.
For sole traders and in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation.
Scope for a greater company pension scheme can be secured through a limited company.
A limited company has a greater ability to raise finance by the issue of shares and also under the “Business Expansion Scheme”.
The company's name is protected; incorporation of a limited company protects the name from use by another limited company.
Limited companies have flexible borrowing powers.
The company continues despite the death, resignation or bankruptcy of members.
The interests and obligations of management are defined.
Appointment, retirement or removal of directors is straightforward.
Personal tax advantages can accrue for directors of a limited company.
Ireland's Corporate Tax Rate of 12.5% is one of the lowest in the world.
Directors pay income tax, and the company pays corporation tax on company profits; under current tax rates, company profits earned and retained in the business are assessed to corporation tax at lower rates than if income tax were payable on equivalent profits earned by an unincorporated business.

The previously described points apply for both private companies limited by guarantee, in addition to limited by shares companies. A primary difference is that for guarantee companies, the owner-to-be has the option to form their company with, or without, share capital.

The Memorandum of Association of a company aims to set out what the company may do, which, at one time, had been extremely extensive in order to allow for future flexibility. However, in current times, and with the recent introduction of NACE Codes, the automatic flexibility no longer applies, which is partially why a description of your company’s general activities is requested. Your main activities are subsequently matched to a pre-determined NACE Code, which is then placed in the Memorandum of your company. To supplement the Memorandum, the Articles of Association elaborates on the exact manner by which a company is to be governed, and is normally accomplished by choosing a standard set of Articles provided within the Companies Acts' 1963-2001 with appropriate amendments or alterations made by company formation agents, such as Coddan.

Fortunately, there is no need to worry about the appropriate information, legal inclusions, or format of any initial company documents when forming your new company through Coddan. Our consultants are able to supply our clients with clear, legal Memorandum and Articles of Association, which are included in each company formation package, even the most basic packages purchased. Also provided in each package are an original Certificate of Incorporation, signed by an official CRO representative; share certificates; minutes of the first official meeting conducted by the company; and a company register of members. Basically, these are the most important documents needed to prove to organisations, or any interested parties, that your Irish limited company is officially registered and able to conduct business according to Irish laws.

Coddan aims to provide the most professional service possible for Irish company formation. We cover many aspects of the overall formation process in our comprehensive website; however, if you have any additional inquiries about Irish guarantee companies or any other topic, contact us with your questions. If you are ready to order your new company, place your online order today!

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