Under 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;