If you are thinking about starting a business then you may be thinking about different company types that are present. Are you wondering what kind to form? If yes, it may be a good idea to know about some company types. This article aims to inform you about a limited, single member, and unlimited company.
Let us start off by describing what a company is.
What is a company?
A company tends to be a legal form particularly of business organization that is regarded as a separate legal entity. It is therefore separate along with distinct from the individuals who run it.
Now let us look at a few types so that you can get an idea of which one may be better for you to form.
A Limited Company
The shares present will be owned by the shareholders it has.
In a limited liability company, it is vital to know that the shareholders’ liability, if the business should fail, tends to be limited precisely to how much, if any, of the remaining unpaid precisely on the shares that are held by them.
Being a separate legal entity, this type of business tends to, therefore, be separate along with distinct from the individuals that run it.
It is important to know that only the business may be sued particularly for its obligations moreover may sue so as to enforce its rights.
There are different types of limited company. This includes A Private Company Limited by Shares (LTD company), A Designated Activity Company (DAC), A Designated Activity Company Limited by Guarantee (DAC), A Company Limited by Guarantee (CLG) and A Public Limited Company (PLC).
A Single Member Company
This is a business that is incorporated with only one member. Or it is one whose membership tends to be reduced to one individual.
Nevertheless, the company needs to have a minimum of two directors plus a secretary. (This case can be revoked if it is an LTD one. This may also be such that it is a single director company).
It is up to the sole member to not hold General Meetings, encompassing Annual General Meetings (AGM’s).
Financial statements along with reports which would usually be laid before its AGM will still have to be prepared plus forwarded to the member.
Remember that all company types may be single member companies.
An Unlimited Company
There is no limit put on the liability of an unlimited company’s members.
Recourse may be had precisely by creditors to the shareholders specifically in respect of any liabilities that are owned by the company that it has not been able to discharge.
This type of company may be public or private. It should have at least two shareholders.
The above are three types of companies that can be considered when thinking about company formation Ireland [https://mshaccountants.ie/company-formation-ireland]. You can consult a consultant to find out more, for example, you can have a look at the MSH Accountants.