Why And How To Set Up A Limited Company For Your Business In Ireland

HOW AND WHY SET UP A LIMITED COMPANY FOR YOUR BUSINESS IN IRELAND

Most entrepreneurs start off their business as a sole trader, which in essence means that you are treated as self-employed. However, when your business starts to grow and make more profits, it is better to consider setting up a Private Company Limited by Shares (LTD Company). 

The process of forming an LTD company is not too complicated. However, there are a number of legal, financial and administrative responsibilities that you need to be aware of before starting off. Our guide below explains all aspects helping you to make an informed start.

What is a Limited Company and Why Should You Consider Setting Up One?

A limited company is a legal structure for running your business where your business is treated as a separate legal entity and is liable for its own obligations. This means that your liability as an owner will be restricted to the amount, if any, unpaid on the shares held by you. This becomes important should the company fall into financial problems. The limited liability feature is the main advantage of forming a limited company. 

In contrast, running your business as a sole trader might have the disadvantage of you paying for any business loans and liabilities in the event of financial crisis for the company. This means that your personal assets are not protected and can be used to settle the company obligations.

In addition to the limited liability, running a business as a Limited Company results in an enhanced brand image, greater financial freedom and improved credibility. It also becomes possible for the business to raise funds, for future growth and expansion, through equity (by selling shares) or in the form of a bank loan.

5 Prerequisites to Know Before Registering Your Company

Before registering your company with the Companies Registration Office (CRO), it is important to work through the following so that you have all the necessary documentation ready and compiled before submitting your application to the CRO.