Types of Companies in Ireland
Ireland offers several company structures under the Companies Act 2014. Choosing the right type depends on your business goals, the number of owners, and your liability preferences.
Private Company Limited by Shares (LTD)
Most CommonThe LTD is the most popular company type in Ireland, accounting for over 90% of all new incorporations. It is governed by Part 2 of the Companies Act 2014.
- Limited liability — shareholders' personal assets are protected
- Minimum one director and one secretary (cannot be the same person if sole director)
- No minimum share capital requirement
- Single-document constitution replaces the old Memorandum & Articles
- Can have up to 149 shareholders
- Ideal for small and medium businesses, startups, and sole founders
Designated Activity Company (DAC)
Specific PurposeA DAC is suited for companies with a defined and limited scope of activity. It retains the two-document constitution (Memorandum and Articles of Association) from the old Companies Acts.
- Requires at least two directors
- Objects clause limits the company's activities
- Suitable for joint ventures, SPVs, and regulated entities
- Commonly used in financial services and property holding
- Can be limited by shares or by guarantee
Company Limited by Guarantee (CLG)
Non-ProfitThe CLG is designed for non-profit organisations, charities, clubs, and management companies. Members guarantee a nominal amount (usually €1) rather than holding shares.
- No share capital — members guarantee a contribution on winding up
- Requires at least two directors
- Must have at least one member
- Suitable for charities, sports clubs, residents' associations
- Can apply for charitable status with the Charities Regulator
Public Limited Company (PLC)
Stock ExchangeA PLC can offer its shares to the public and may be listed on a stock exchange. It is subject to stricter governance and reporting requirements under the Companies Act 2014.
- Minimum share capital of €25,000 (at least 25% paid up)
- Requires at least two directors and a qualified company secretary
- Annual audit is mandatory — no audit exemption available
- Must hold an AGM each year
- Subject to the Transparency Directive if listed
Limited Partnership (LP)
InvestmentAn LP consists of one or more general partners (with unlimited liability) and one or more limited partners (whose liability is limited to their contribution). Governed by the Limited Partnerships Act 1907 and the Investment Limited Partnerships Act 1994.
- General partner manages the business and has unlimited liability
- Limited partners contribute capital but do not participate in management
- Commonly used for investment funds and venture capital
- Not a separate legal entity — the general partner acts on behalf of the LP
- Must be registered with the CRO
Sole Trader vs Limited Company in Ireland
A sole trader is the simplest way to start a business in Ireland, but a limited company offers significant advantages in liability protection, tax efficiency, and credibility.
Company Type Comparison Table
| Feature | LTD | DAC | CLG | PLC | Sole Trader |
|---|---|---|---|---|---|
| Limited Liability | — | ||||
| Separate Legal Entity | — | ||||
| Minimum Directors | 1 | 2 | 2 | 2 | N/A |
| Share Capital Required | No min | No min | None | €25,000 | N/A |
| Audit Exemption | Yes | Yes | Yes | No | N/A |
| CRO Registration | — | ||||
| Annual Return (B1) | — | ||||
| Corporation Tax (12.5%) | — | ||||
| Personal Tax Only | — | — | — | — | |
| Suitable for Startups | — | — | — |
Ready to Register Your Company?
Most businesses choose the Private Limited (LTD) structure. Start your company formation from just €240.
Start Company Formation