Company Formation FAQ’s

These are the most common questions asked when setting up a company. If you have any other questions, just drop us an email or give us a call. 

• Can I pick any company name?
  • Unfortunately not! The name must be sufficiently distinguishing from a company already on the Register and there are over 300k companies on the Register. We can check to see if the name may be approved by the CRO. Click here for more information on Choosing a Company Name

• Will my business name be approved as a company name?
  • Unfortunately not! Just because you have a business name registered it does not guarantee the name may be approved as a company name Click here for more information on Choosing a Company Name

• Can I reserve a company name?
  • Yes a company name may be reserved for a period of 28 days at a cost of €25. The €25 fee will be taken off the €50 filing fee to incorporate the company if the application is submitted within 28 days

• How many directors do I need?
  • An LTD company only requires one director however all other company types requires two directors. Click here for more information on director requirements

• Does a CLG have to have members?
  • Yes a CLG needs to have at least one member. Often in a CLG the members are also the directors however they have different roles and responsibilities. Click here for more information on members for a CLG

• What is the difference between a director and a member?
  • A director is a person who is responsible for making decisions in the company. A member is someone who (depending on the company type) invests into the company for a return. A director may also act as a member of the company. Click here for more information on members and directors.

• What is the difference between company types?
  • An LTD is the most commonly used company for SME’s. A CLG is used for charitable and not for profit companies. An unlimited company may be used if the owners do not want to file financial statements and take on the risk of unlimited liability.
  • For more information on the different company types click here

• What is the difference between an LTD and a DAC?
  • An LTD company may only have one director and is not restricted in its activities however it cannot act as a credit institution or an insurance undertaking.
  • A DAC company must have 2 directors and it must have a principal activity but it can act as a credit institution or insurance undertaking
  • Click here for more information on company types

• What company type should I use for a not-for-profit company?
  • A Company Limited By Guarantee is the most suitable company type for a nont-for-profit company. 
  • Click here for more information on CLG companies

• What company type does not have to file financial statements?
  • An unlimited company is the only company type that may not have to file financial statements with the CRO. However, this is dependent on whether the shares are held by individuals or other limited liability companies.
  • Click here for more information on unlimited company requirements

• What Company Type Should be used for an Owners’ Management Company?
  • A CLG is the most commonly used company type to be used but we have seen DAC’s being used.
  • Click here for more information on OMC’s

• What is a NACE code?
  • A NACE code is an economic activity classification for companies which is used for a wide variety of European statistics in the economic, social, environmental, and agricultural domains. 
  • Click here to view the list of NACE codes 

• Does a company have to carry on an activity in the State?
  • Yes every company must carry an economic activity in the State and the directors make a declaration to this when the company is being incorporated

• I am a sole trader and want to set up a company which company type should I choose?
  • If you are a trading company, then the most appropriate company type would be an LTD company.

• Can a company have only one director?
  • Yes an LTD company may have just one director however it requires a separate company secretary.

• Can a non-resident act as a director?
  • Yes if one of the other directors is an EEA Resident. Othewise they will have to obtain a Non-Resident Director Bond
  • Click here for more information on Non-Resident Director Bonds

• Do all the directors have to be Irish?
  • From a company law perspective, the company must have at least one EEA resident director. There are some tax requirements that may require the majority of the board of directors to be Irish resident so appropriate tax advice should be obtained.

• Can a director be the company secretary?
  • If the company is an LTD then a director may be the company secretary only if there is another director. You cannot be the sole director and the company secretary. All other company types the director may also act as the company secretary.

• I don’t have a PPS number, what can I do?
  • If you do not have an Irish PPS number or an RBO transaction number then you may apply for an Identified Person Number (“IPN”)
  • Click here for more information on PPSN requirements

• Who are the first subscribers
  • The subscribers are the first members (shareholders) of the company. 
  • Click here for more information subscribers

• Differences between shareholders, members and directors
  • Directors are tasked with the day-to-day management of the company
  • The members / shareholders are the owners of the company and the type of company will determine the ownership of the company by way of shares or just membership
  • Click here for more information on shareholders, members and directors

• Members in a Company Limited by Guarantee
  • A CLG must have at least one member. Often a CLG does not have a separate body of members so the directors will also act as the members of the company.
  • Click here for more information on CLG’s

• How many shares do I have to issue?
  • The minimum number of shares to be issued is 1. Shares may be used to determine the ownership structure of the company. 
  • If a shareholder is issued 100 Ordinary shares of €1 each that shareholder will have to pay €100 to the company.
  • For more information on shares and share capital click here

• Can a PO Box be used as a registered office address?
  • No the registered office address must be a physical location and cannot be a post office box number.
  • Click here for more information on the Registered Office Address

• How long does it take to set up a company?
  • The CRO take 5-7 working days to incorporate a company on receipt of a completed application. This timeframe maybe shorter or longer depending on the amount of applications the CRO have received.

• What do I need to do after I set up a company?
  • Click here to read more about the next steps to take after forming a company

• Do I need another person if I want to set up a company on my own?
  • Yes, if you are setting up an LTD company you may act as the sole director and the sole member however you will require a separate company secretary who may be an individual or a company.

• Do I need to provide identification?
  • Yes if you are forming your own company, we will require identification of the directors and beneficial owners.
  • Click here for more information on AML requirements

• How do I sign the documentation?
  • The formation documentation will be issued to you by email. The documentation should be printed, reviewed and then signed by all the parties. 
  • The signed signature pages must be scanned and sent to us for filing with the CRO.
  • Unfortunately, digital signatures are not accepted.

• Can I make changes to my company after it is formed?
  • Yes you can make changes to the company details which we would be happy to assist with and may include:-
    • Change Company Name or the constitution
    • Appoint or resign directors or the company secretary
    • Allot or transfer shares

• Can I add another Director/shareholder after the company is formed?
  • Yes a new director may be appointed and shares may be allotted or transferred to a new shareholder
  • For more information or assistance with this click here

• What are my responsibilities after the company formation?
  • Click here for more information on your company law requirements after forming a company