Private company limited by shares (LTD) in Ireland

The Irish Private Limited Company

The private limited company is the most common business structure in Ireland, offering limited liability protection to its shareholders. Introduced under the Companies Act 2014, this structure (known as an LTD) has become the standard choice for entrepreneurs and businesses establishing a presence in Ireland. Whether you’re an Irish resident or an international entrepreneur looking to expand into the European market, understanding the formation process, requirements, and benefits of an Irish private limited company is essential for making informed business decisions.

Ireland’s reputation as a business-friendly environment, combined with its competitive 12.5% corporate tax rate and access to the EU market, makes it an attractive location for company formation. This guide provides a detailed overview of everything you need to know about establishing a private company limited by shares in Ireland.

What is a Private Limited Company in Ireland?

The LTD is the standard private company limited by shares in Ireland, introduced under the Companies Act 2014. It serves as the Irish equivalent of a Limited Liability Company (LLC) in other jurisdictions. This company type is characterised by having a separate legal identity from its owners, limited liability protection for shareholders, and the ability to have between 1-149 shareholders.

A private limited company in Ireland operates under a single-document constitution, which replaced the previous Memorandum and Articles of Association. One of the key features that distinguishes the LTD from other company types is that it doesn’t require an objects clause, giving it unlimited capacity to carry out any legal business activities. The structure provides flexibility in operations while maintaining a professional corporate image that can enhance credibility with customers, suppliers, and potential investors.

Benefits of a Private Limited Company in Ireland

Do you know the benefits of a private limited company in Ireland extend beyond just limited liability protection?  Here’s why this structure is favoured by both domestic and international entrepreneurs.

Limited Liability Protection

The primary advantage is the separation between personal and business assets. Shareholders' liability is limited to their investment in the company, protecting personal assets from business debts and liabilities.

Tax Advantages

Ireland offers a corporate tax rate of just 12.5% on trading income, one of the lowest in Europe. This competitive rate, combined with an extensive network of double taxation treaties, makes Ireland an attractive location for tax-efficient business operations.

Separate Legal Entity

As a distinct legal entity, a private limited company can:

• Enter into contracts in its name

• Own property and assets

• Sue and be sued independently of its shareholders

• Continue to exist regardless of changes in ownership

Enhanced Credibility

Operating as a limited company in Ireland provides a professional image that can enhance credibility with customers, suppliers, and financial institutions. The “Ltd” suffix signals a formal business structure that has met specific legal requirements.

Access to the EU Market

Irish companies enjoy unrestricted access to the European Union market, making Ireland an ideal gateway for international businesses looking to expand into Europe.

Flexible Governance Structure

The LTD structure allows for simplified governance, including:

• Minimum of one director (who can also be a shareholder)

• No requirement for Annual General Meetings (AGMs) for single-member companies

• Ability to pass the majority of written resolutions

• Option to dispense with physical general meetings

Private Limited Companies vs Other Business Structures in Ireland

When considering business structures in Ireland, it’s important to understand how private limited companies compare to alternatives. 

Private limited companies in Ireland must file annual returns with the Companies Registration Office, unlike sole traders, who have simpler reporting requirements. However, the administrative burden is offset by the significant benefits of limited liability and potential tax advantages.

Unlike public companies, private limited companies cannot offer shares to the general public and are limited to 149 shareholders, which maintains a level of control and privacy for business owners.

Requirements for Private Limited Company in Ireland

Before initiating the formation process, it’s important for you to understand the requirements for a private limited company in Ireland. Hence, we have outlined the fundamental requirements below: 

Director Requirements

• Minimum of one director (no maximum limit)

• At least one director must be a resident of the European Economic Area (EEA)

• If no EEA-resident director is available, a Section 137 bond can be obtained as an alternative. Nathan Trust can help you with a Section 137 bond if required. Contact our team for assistance. 

• Directors must be at least 18 years old

• Corporate directors are not permitted

Company Secretary

• Appointment of a company secretary is mandatory. Reach out to our team for company secreatarial requirements

• Can be an individual or a corporate entity

• If there’s only one director, they cannot also serve as the company secretary

• If there are multiple directors, one can also act as the secretary

• The secretary should be qualified and skilled to ensure proper execution of duties

Registered Office

• A physical address in Ireland is required

• This address will be publicly available on the Companies Registration Office (CRO) register

• Virtual office solutions are acceptable as long as they provide a physical address for document inspection

Share Capital

• No minimum share capital requirement

• Shares can be denominated in any currency

• Different classes of shares with varying rights can be issued

• A statement of capital must be included in the constitution

Company Name

• Must be unique and not too similar to existing company names

• Cannot be offensive or suggest a connection with the government

• Must end with “Limited” or “Ltd” (or Irish equivalents)

• Cannot include restricted words without permission

Now that you have got a hold of what's required for an Irish private company limited, we would suggest you to go through our page on step by step guide for registering a company in Ireland. If you have any further questions, you can contact our team for assistance. 

Incorporate an Irish LTD Company - Our Pricing 

1. Standard Company Set-Up Package - costs €2795 (This is the basic requirement to register your company in Ireland legally).

• Company Incorporation 

• Registered Office address in Ireland

• Annual Return

• Company Secretary

• UBO Register & AML

2. Full-Service Company Set Up Package - costs €5680 (Full-Service package streamlines post-incorporation steps like opening a business bank account and registering for tax/VAT, which are essential for trading but can be done separately if the client wishes).

• Company Incorporation

• Registered Office address in Ireland

• Annual Return

• Company Secretary

• UBO Register & AML

• Bank Account setup & AML

• Corporation Tax Registration

• VAT Registration

Recent Regulatory Updates for Private Limited Companies (2025)

The regulatory landscape for private limited companies in Ireland continues to evolve. Key updates for 2025 include:

Audit Exemption Changes

New regulations allow small companies to maintain audit exemption status even after one late filing, losing it only after two late filings within a five-year period. This provides more flexibility for small businesses while still encouraging compliance.

Enhanced Compliance Measures

New grounds for involuntary strike-off have been introduced, including:

• Failure to update the registered office address

• Non-provision of beneficial ownership information

• Absence of a corporate secretary or director

Digital Transformation

The CRO has completed its transition to digital certificates of incorporation, eliminating paper certificates. All company documents are now available in digital format, streamlining the registration and compliance processes.

Taking the Next Steps

Whether you’re a startup founder, an established business looking to expand, or an international entrepreneur seeking a European base, the private limited company structure in Ireland provides the flexibility, protection, and credibility needed to achieve your business objectives.

For more information on how to register a Private Company Limited by Shares (LTD) or any other Irish company types, please do not hesitate to contact the experts at Nathan Trust using the contact option below or email us at sales@nathantrust.com