Every company is required to carry out an activity in the State. Depending on the company type this activity must be provided for in the company constitution.
An LTD company has the capacity of a natural person so it does not require to have a principal objects clause in its constitution.
All other company types, DAC, CLG, UC & PLC must have a stated principal objects clause in its company constitution.
Charity companies must have a detailed principal objects clause and ancillary objects and power clauses in its constitution when applying to the Charities Regulator for charitable status.
Activity means any activity that a company may be lawfully formed to carry on and includes the holding, acquisition or disposal of property of whatsoever kind. A company may not be incorporated and registered unless it appears to the Registrar of Companies that the company, when registered, will carry on an activity in the State.
NACE Code
The Form A1 contains a declaration, to be signed by a director or secretary of the company, or the solicitor, if any, engaged in the formation of the company, that one of the purposes for which the company is being formed is the carrying on by it of an activity in the State. This declaration must include the general nature of the activity and the appropriate NACE Code Classification (the NACE code is the common basis for statistical classifications of economic activities within the E.C.
This applies to all company types including an LTD company and CLS may assist in selecting the appropriate NACE Code for the company.
Please Note:
Our CLS Insights aims to bring you practical information and news on Company Law and Company Secretarial. We cover the topics that matter to your business and give practical tips and also the benefit our experiences. Please remember this article is a guide and legal advice should always be obtained. If you have any queries please contact one of the team and we would be happy to help.
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