What is the share capital in Ireland?
The share capital refers to the sum of money deposited by investors, who, in return, will receive shares in accordance to their contribution to the company’s assets. Persons who want to invest their finances in an Irish company should be familiar with the provisions of the Companies Act related to this legal requirement.
Foreign investors interested to establish a company in Ireland have to complete a set of steps in order to incorporate the business in accordance with the stipulations of the local legislation. One of the legal requirements in this sense refers to the minimum share capital, which varies in accordance with the legal entity chosen by the businessman.
The registration of the minimum share capital in Ireland is established by the Companies Act 2014; the Act sets out new rules regulating the registration and the activities of companies in Ireland, offering a more flexible perspective, advantageous to both local and foreign entrepreneurs. Our team of Irish lawyers can provide legal assistance related to the minimum share capital, as well as for any other aspect of the incorporation process. We also offer non-corporate services, such as legal assistance during divorce in Ireland.
What is the minimum share capital for limited companies in Ireland?
The Companies Act 2014 has brought many changes for the legal entities available in Ireland, one of the main modifications referring to the types of limited companies. The limited company is the most popular type of company registered in Ireland due to its stipulations on the shareholders’ liability.
As a general rule, the shareholders are only liable to the amount of shares owned in the business and they can’t be held responsible for the company’s debts; our lawyers in Ireland can offer more details in this sense. The Companies Act established the following minimum share capital regulations for limited companies in Ireland:
- • private limited liability company – there are no requirements related to the minimum share capital;
- • designated activity company – it must be registered with an authorized share capital;
- • designated activity company limited by guarante – the above mentioned regulation applies in the case of this business form as well;
- • company limited by guarantee –the company can be registered without depositing a share capital;
- • public limited company – the minimum share capital for this type of company is set out at minimum EUR 25,000; 25% of this sum should be deposited before the company starts its business activities.
Can the company’s share capital be modified in Ireland?
According to the Irish legislation, both the authorized and the nominal share capital can be modified. The investors are allowed to increase the value of the company’s share capital in order to issue more shares. In this sense, it is necessary to sign a special resolution and to add an amendment to the company’s statutory documents, which, then, will need to be registered with the Companies Registration Office (CRO).
In order to increase the company’s share capital, the investors will have to submit specific documents with the CRO, in a maximum period of 15 days since the resolution regarding the increase the capital was approved. CRO will request several documents, including a signed copy of the resolution, as well as the latest version of the company’s statutory documents. However, in the case of business forms operating as unlimited companies in Ireland, there is no need to subscribe the modified statutory documents.
It is important to know that the company’s representatives may also perform a reduction on the company’s share capital, but in this case it is required to obtain an order issued by the High Court, as stipulated under the Section 84 of the Companies Act.
What is the authorized/issued capital in Ireland?
Irish companies can have two types of capital: authorized capital and issued capital. The authorized capital represents an arbitrary value regarding the total number of shares that the respective company can issue. In the case of the issued share capital, it is defined by the actual number of shares that are owned and paid by the company’s shareholders. In Ireland, the issued share capital usually has a very small value, and it can be set up at EUR 0,01.
Reporting requirements for Irish private companies
Besides the above mentioned aspects, all Irish private companies have to comply with a set of reporting requirements, including on the company’s capital. On an annual basis, private companies have to report to the CRO information on various company aspects; in terms of the company’s share capital, it is required to offer information on the current value, as well as information regarding any modifications of the capital.
If you need further information on the minimum share capital in Ireland, please contact our law firm in Ireland for assistance. Our lawyers can assist with information on the procedure for depositing the minimum share capital for the chosen legal entity. We also provide a number of other services, among which legal assistance for divorce in Ireland.