Although the most popular way of starting a business in Ireland is by registering a limited liability company, a part of the investors also choose to incorporate unlimited companies. The unlimited companies registered in Ireland represent just a small percentage (approximately 2% of the overall legal entities registered with the Companies Registration Office), as the liability of the company’s founders has no limit in respect to the company’s losses. Our team of Irish lawyers can provide in-depth advice on the registration of an unlimited company, which may be set up as private or public.
Types of unlimited companies in Ireland
Investors who want to open an Irish companyare advised to study the latest regulations on this matter provided under the new Companies Act, the main rule of law referring to the types of legal entities that can be set up in this country.
The following video provides a short presentation on the Irish unlimited company:
Businessmen may choose from the following types of unlimited companies:
•private unlimited company with share capital;
•public unlimited company with share capital;
•public unlimited company without a share capital.
Main characteristics of Irish unlimited companies
Just like any other legal entity operating in this country, thisbusiness form will need to be registered following the standard registration procedure. The unlimited company has certain characteristics that distinguish it from other types of business forms that have to be taken into consideration during the registration, which can be detailed by our team of lawyers in Ireland.
For example, in an unlimited company, the investors will need to appoint at least two directors, while the company’s founders have the quality of members. This type of legal form can be set up by a single member, but there is no limit for the number of members the company may have.
The unlimited company is incorporated by drafting the company’s constitution, which is a document comprised of two compulsory documents: the articles of association and memorandum.
The legal requirements stipulate that the company’s trading name has to contain the words “unlimited company” or the abbreviation “UC”, but an exemption in this sense may be provided following the section 1237 of the new Companies Act.