Types of Company

The Companies Act 2014 replaced earlier legislation, introducing revised company structures while retaining many core principles. Most companies in Ireland are private limited companies (LTDs), where shareholders’ liability is limited to unpaid shares. Foreign-incorporated companies with branches in Ireland must register and comply with CRO requirements.

Types of Companies:

1. Private Limited Companies (LTDs): Default under the 2014 Act, LTDs have up to 149 shareholders, simplified constitutions without an objects clause, and full capacity to conduct any lawful business. They cannot issue shares to the public or trade as credit institutions or insurers.
2. Designated Activity Companies (DACs): Similar to pre-2014 private companies, DACs may have limited objects, with “ultra vires” rules still applicable. They can issue debt securities but not shares to the public.
3. Companies Limited by Guarantee (CLGs): Common for charities and non-profits, members have limited liability for winding-up costs. CLGs often lack share capital and have unlimited membership.
4. Unlimited Companies (ULCs, PUCs, PULCs): Shareholders have unlimited liability for company debts. These entities benefit from lighter publication requirements, often used for holding or non-trading entities.
5. Public Limited Companies (PLCs): PLCs can offer shares to the public and list on stock exchanges, requiring stricter regulatory compliance and a minimum share capital of €25,000.

Other Forms:

• Statutory Corporations: Established via Charters or Acts of Parliament, these include public and semi-state bodies like RTE and the ESB.

Key Reforms in 2014 Act:

• Re-registration between company types.
• Simplified LTD constitutions.
• Default statutory provisions replacing extensive articles of association.

The act modernised corporate structures, aligning them with business needs and regulatory standards.