Company Limited by Guarantee in Ireland

The landscape of company law in Ireland underwent a significant transformation with the introduction of “The Companies Act 2014,” which went into effect on June 1, 2015. This overhaul introduced vital reforms aimed at boosting foreign investment and stimulating economic growth. Among the various avenues for investment, the most popular is company formation. The Company Limited by Guarantee Ireland is a unique business entity designed to support diverse entrepreneurial ventures. It gained massive popularity due to its many perks.

What is a Company Limited by Guarantee?

A Company Limited by Guarantee (CLG) is a business structure commonly used by non-profit organizations that do not have share capital. Charities, clubs, and similar businesses typically adopt these structures.

Features of a Company Limited by Guarantee Ireland

Before setting up a Company Limited by Guarantee in Ireland, you must know the following key features:

• A CLG Ireland is required to have two directors and at least one member (shareholder)
• The directors can also be a shareholder (member)
• CLG is considered a legal entity separate from its shareholders
• CLGs can buy and sell property in the name of the organization
• An existing guarantee company with no share capital is deemed to be a CLG
• A CLG can avail of audit exemption
• The Annual General Meeting may be dispensed if a CLG has a single member
• The CLG has a single-document constitution incorporating a memorandum of association and articles of association

Things to Consider Before Setting up a CLG Ireland

You have to consider the following before setting up a Company Limited by Guarantee in Ireland.

• Appoint a director who is a resident of Ireland
• Choose a company secretary
• Open a business bank account to manage your company finances
• Register your company at the Companies Registration Office (CRO)
• File the Register of Beneficial Owners (it's mandatory for all Ireland companies)

Company Limited by Guarantee in Ireland are Used For

The following sectors use CLG Ireland:

• Charities
• Sports club
• Educational institutions
• NGOs
• Membership organizations

Steps for Setting up a Company Limited by Guarantee in Ireland

The process to set up a Company Limited by Guarantee in Ireland is:

1. Choose a Company Name

Check with the Companies Registry to ensure that the name you have chosen has not already been taken.

2. Register an Office

Your company must have a registered office in Ireland.

3. Draft MoA and AoA

You have to draft the Memorandum and Articles of Association to register your company in Ireland.

4. Pay the Initial Deposit

You have to pay the registration fees to complete the process.

5. Wait for Approval

Once you pay the initial registration fees, then all you have to do is wait for the approval.

To simplify the incorporation process, get in touch with a consulting firm. Business Setup Worldwide will help you in choosing the right structure for your business. Contact us today and avail yourself of our services.