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Open a Company Limited by Guarantee in Ireland

Open a Company Limited by Guarantee in Ireland

Updated on Thursday 21st September 2017

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Open-a-Company-Limited-by-Guarantee-in-Ireland.pngUnder the regulations of the new Companies Act, both local and foreign businessmen may set up five different types of limited companies, one of them referring to the company limited by guarantee (CLG). The Irish CLG is incorporated without the need of subscribing a minimum share capital. As a general rule, the CLG is a type of legal entity incorporated by charities, trade unions, sports clubs and other types of non-governmental organizations (NGOs), which are set up for non-profit purposes. Our team of lawyers in Ireland may offer assistance on the registration of the CLG, which is incorporated following the legal procedures applicable to other business forms. 
 

Main characteristics of the Irish CLG  

 
The company limited by guarantee in Ireland is regulated by Part 18 of the Companies Act, which states that the legal entity may be set up by a single member. At the same time, the regulations do not state any limits on the number of members the company may have. 
 
The video below offers more information on the Irish company limited by guarantee:
 

 
The company’s founders are considered members, who are liable for the company’s losses in the amount they have contributed with the company’s assets. However, the value can’t exceed a specific amount, which has to be stipulated in the company’s memorandum and our team of Irish lawyers can offer in-depth assistance on the legal requirements for the company’s statutory documents
 
Investors who are interested in opening a company in Ireland as a CLG can set up this business form to complete a specific purpose, which does not aim at obtaining financial gains. 
 

Advantages of the company’s founders in Ireland  

 
In an Irish CLG, the founders (also referred to as members), enjoy certain advantages, as mentioned below: 
 
the members and the company are seen as different entities;
the company’s members have limited liability;
in a CLG, the founders may sell/purchase property in the name of the organization. 
 
According to the applicable legislation referring to this business form, the members can also be the company’s directors
 
Also, it is important to know that a CLG can be set up in only 2-3 days, provided that the company’s founders can offer all the required documents. 
 
Investors are invited to contact our law firm in Ireland for more details on the registration of a company limited by guarantee.   
 

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