Limited Company Secretarial Library

The popularity of limited companies is reflective of the fact that they offer flexibility and are less administratively burdensome than other company types.

• Limited Liability - The liability of the shareholders of a Limited company is limited to the amount that remains unpaid on shares taken in the company. E.g. if a shareholder has taken 100 shares at €1 each, the liability of this shareholder is capped at this amount.
• Tax Considerations - The profits of a limited company are taxed under the Corporation Tax system at a rate of 12.5%. In contrast, a sole trader is taxed under the Income Tax system. Tax considerations alone however should not be the reason for considering to incorporate as a Limited company and we strongly advise that you speak to a tax professional before making the decision to do so.
• Raising Finance - Limited companies have the ability to raise both equity and debt finance. New shares can be issued to raise equity and the company can take on debt as an entity distinct from any individual member.
• Separate Entity - A limited company is a separate and distinct legal entity to its members. This entity can enter contracts, own property, hold bank accounts and can sue and be sued.
• Business Credibility - The statutory reporting and filing requirements placed on an incorporated company, by irish company law, provides third parties dealing with that entity more visibility and confidence in their dealings with them.
• Perpetual Succession - The company continues to exist after and despite the potential death, bankruptcy or any other matter that may bring to an end the participation of any one shareholder.