The Companies Act 2014 sets out the types of company you can register in Ireland. Most new businesses choose a private company limited by shares (LTD), but there are four other types, each designed for a different purpose: the designated activity company (DAC), the company limited by guarantee (CLG), the unlimited company (UC) and the public limited company (PLC). This guide explains what each type is, who it suits and the main rules that apply.
Types of Companies in Ireland at a Glance
| Type | Name ends with | Liability of members | Minimum directors | Typical use |
|---|---|---|---|---|
| Private company limited by shares | Limited / Ltd | Limited to unpaid amount on shares | 1 (plus a separate secretary) | Most trading businesses |
| Designated activity company | DAC | Limited by shares or by guarantee | 2 | Businesses that want or need a fixed objects clause, regulated entities, listed debt |
| Company limited by guarantee | CLG | Limited to the amount each member guarantees | 2 | Charities, clubs, associations, management companies |
| Unlimited company | ULC, PUC or PULC | Unlimited | 2 | Holding and group structures with specific tax or filing needs |
| Public limited company | PLC | Limited to unpaid amount on shares | 2 | Companies offering shares to the public or listed on a stock exchange |
Every type of company must have a company secretary, and at least one director must be resident in the European Economic Area unless the company holds a bond under section 137 of the Companies Act 2014.
Private Company Limited by Shares (LTD)
The LTD is the standard company type in Ireland and the default choice for a new trading business. It is owned by shareholders whose liability is limited to any amount unpaid on their shares, and it can have between 1 and 149 members.
- It has a single-document constitution and no objects clause, so it can carry on any lawful business.
- It can have one director, provided a different person or a corporate secretary acts as company secretary.
- Members can pass majority written resolutions, and the company can dispense with holding an AGM.
- It can claim audit exemption if it qualifies as a small or micro company.
Designated Activity Company (DAC)
A DAC is a private company with an objects clause: its constitution sets out the activities it may carry on. It can be limited by shares or by guarantee and can have between 1 and 149 members.
- It must have at least two directors.
- It suits companies that want to restrict what the business can do, regulated businesses such as some financial services firms, and companies that list debt securities.
- Members can pass written resolutions only unanimously.
- It can claim audit exemption if it qualifies.
Company Limited by Guarantee (CLG)
A CLG has no share capital. Instead, each member guarantees to contribute a fixed amount, often a nominal sum, if the company is wound up. It is a public company under the Act but cannot offer shares, because it has none.
- It must have at least two directors.
- It is the usual form for charities, sports and social clubs, trade associations and apartment management companies.
- Profits are normally reinvested in the company’s objects rather than paid out to members.
- It can claim audit exemption if it qualifies, and some charities can omit “CLG” from their name.
For a detailed comparison of the LTD and the CLG, see our guide to company limited by shares vs limited by guarantee.
Unlimited Company (UC)
In an unlimited company the members have no limit on their liability for the company’s debts. There are three forms: the private unlimited company with share capital (ULC), the public unlimited company with share capital (PUC) and the public unlimited company without share capital (PULC).
- It must have at least two directors.
- It is used mainly in group and holding structures, often for tax or financial reporting reasons.
- Some unlimited companies do not have to file financial statements with the CRO, depending on who owns them.
Public Limited Company (PLC)
A PLC can offer its shares to the public and can be listed on a stock exchange.
- It must have at least two directors and a company secretary with the qualifications set out in the Act.
- It must have a minimum issued share capital of €25,000, at least a quarter of it paid up.
- It cannot claim audit exemption, and it must hold an AGM every year.
- It suits large businesses raising capital from investors or the markets.
Which Company Type Should You Choose?
For most founders the answer is an LTD: it is the simplest to run, has no objects clause, needs only one director and can claim audit exemption. Choose a DAC if your business must have defined objects, a CLG for a not-for-profit or members’ organisation, and a PLC only when you plan to raise capital from the public. Unlimited companies are a specialist choice for group structures and need professional advice. If you are still deciding between trading through a company or on your own, see our comparison of a sole trader vs limited company.
How We Can Help
If you are resident in Ireland, our Irish resident company formation package sets up an LTD with the CRO filing, Corporation Tax registration and RBO filing. If you need a different company type, contact us and we will advise on the structure that fits.
Disclaimer: This article is for general information only and does not constitute legal advice. Professional advice should be obtained before choosing a company structure.
