Selecting the appropriate company structure is a critical decision when incorporating in Ireland. The Companies Act 2014 sets out several company types, each tailored to different business needs and regulatory contexts.
Parts 1–15 of the Companies Act deal specifically with Private Companies Limited by Shares (LTDs)—the most common form of company in Ireland. Other company types are covered in Parts 16–25.
At a high level, companies are classified as Private or Public (based on ownership) and Limited or Unlimited (based on liability for debts). Below, we provide a breakdown of each type and what makes them distinct.
Overview of Company Types under the Companies Act 2014
- Private Company Limited by Shares (LTD)
- Designated Activity Company (DAC)
- DAC limited by shares
- DAC limited by guarantee with a share capital
- Private Unlimited Company (ULC)
- Public Limited Company (PLC)
- Public Unlimited Company (PUC)
- Public Unlimited Company without Share Capital (PULC)
- Company Limited by Guarantee (CLG)
- External Company (EEA or non-EEA)
Note: External companies are not covered in this blog. Please contact our team if you require guidance on registering an external branch.
Private Companies in Ireland
The Private Company Limited by Shares (LTD) is by far the most popular company type. According to 2022 statistics, LTDs made up approximately 89% of all companies on the Irish Register, followed by CLGs at 6%, and DACs and ULCs at 2% each.
LTDs can be established by one or more individuals carrying on lawful business, provided the company constitution meets the requirements of the Act.
Private Company Limited by Shares (LTD)
An LTD has shareholders who own its issued shares. Liability is limited to the unpaid amount (if any) on the shares held.
Key features include:
- Limited liability structure
- Share capital with optional authorised capital
- Maximum of 149 members
- May pass majority written resolutions
- Option to dispense with holding an Annual General Meeting (AGM)
- May qualify for audit exemption
- Minimum age for directors is 18
- May have a single director, but the secretary must be a separate individual or body corporate
- Governed by a single-document Constitution (no objects clause)
- Company name must end in “Limited” or “Teoranta”
Designated Activity Company (DAC)
Governed under Part 16, DACs operate with a two-part constitution that includes a memorandum of association, which sets out the company’s specific business purpose.
Key characteristics:
- Must have at least two directors, all aged 18 or over
- Has an objects clause that restricts its activities
- Can be limited by shares or by guarantee (with share capital)
- May pass majority written resolutions
- Cannot dispense with AGM if there are two or more members
- Company name must end in “Designated Activity Company” or “Cuideachta Ghníomhaíochta Ainmnithe”, unless exempted
- May qualify for audit exemption
Common uses:
- Companies incorporated for a specific legal purpose (e.g., joint ventures, SPVs)
- Regulated entities under financial legislation
- Companies with shareholder preference for restricted powers
- Charities or management companies with limited liability but defined objectives
Company Limited by Guarantee (CLG)
CLGs are not-for-profit companies that do not issue shares. Instead, they have members, and each member’s liability is limited to a specified amount outlined in the constitution.
Key features:
- No share capital; governed by a two-part constitution
- Must have at least two directors (minimum age 18)
- Name must end in “Company Limited by Guarantee” or “Cuideachta faoi Theorainn Ráthaíochta”, unless exempt under Section 1180
- May be eligible for both audit exemption and dormant company audit exemption
Note: CLGs intending to register as charities or Multi-Unit Developments (MUDs) should confirm additional legal requirements prior to incorporation.
Public Limited Company (PLC)
PLCs are suited to companies seeking to raise capital through public investment or large-scale membership.
Key features:
- Governed under Part 17 of the Companies Act 2014
- Must have a minimum issued share capital before trading
- Must have at least two directors (aged 18+)
- Limited liability structure
- Company name must end in “Public Limited Company” or “Cuideachta Phoiblí Theoranta”
- Not eligible for audit exemption or dormant company audit exemption
Unlimited Companies
Operating under Part 19, unlimited companies do not limit members’ liability.
Types include:
- Private Unlimited Company (ULC)
- Public Unlimited Company (PUC)
- Public Unlimited Company Without Share Capital (PULC)
General characteristics:
- No limit on liability—members may be called upon to contribute beyond any shareholding
- Constitution includes a memorandum and articles of association
- Must have a minimum of two directors (18+)
- Company name must end in “Unlimited Company” or “Cuideachta Neamhtheoranta”
- Public unlimited companies do not qualify for audit exemptions
