The Share Capital in Ireland
The Share Capital in IrelandUpdated on Tuesday 21st February 2017
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The share capital of a company represents the way in which ownership is established within a company. Although any business starts with a certain number of shares, distributed amongst the shareholders, further shares can be added to increase the value of the company. Our attorneys in Ireland, specialized in business law, can offer you an in-depth presentation on the share capital of a company.
Authorized share capital in Ireland
The authorized share capital represents the maximum value of share capital the company can issue; this amount of shares will be established at the incorporation of the business, but if the shareholder may want to increase the value of the company, the share capital can be raised after the company has started its activity. The maximum value it is established according to the Memorandum and Article of Association. If you want to find out more on the subject, you can require the help of our law firm in Ireland.
Issued share capital in Ireland
The issued share capital represents the value that is being paid by the shareholders; regardless of the business incorporation you chose for your company, the issued share capital (ISC) must be smaller than the authorized share capital. The ISC represents the value that the shareholders may have to pay, in the situation in which the business may not succeed.
According to the Companies Registration Office, if the issued share capital has to be decreased, the shareholders must obtain an order from the Irish High Court. Our lawyers in Ireland can offer you legal representation on this matter.
Irish limited liability companies
According to the Companies Act 2014, limited liability companies are not obliged to have authorized share capital, but all other business incorporation forms must have both types of share capital. Public limited liability companies have to deposit a share capital in the amount of EUR 25,000 at the incorporation.
If you need further information about share capital in Ireland, please contact our Irish lawyers, who can offer you consultations on the shareholders legislation.