A Private Limited Company is the most frequently incorporated entity for private, commercial businesses and ventures. This is a company limited by shares, a company having the liability of its members limited by the Memorandum to the amount, if any, unpaid on the shares respectively held by them. The company is considered a separate legal entity from the individuals involved (i.e. Directors and Shareholders)
A small/medium sized company need only file abridged audited accounts, showing a limited amount of information, at the Companies Registration Office (CRO) They can also avail of the Audit Exemption if their turnover is less than €8,800,000. It is important to note than an Annual Return must be filed every year with the C.R.O. regardless of whether the company has traded or not.
A Private Limited Company normally consists of 1-4 shareholders but can have more, up to a maximum of ninety-nine. When a private limited company has only a single shareholder, this is known as a Single Member Company. This single or sole member may if he or she so decides may dispense with the holding of general meetings, including Annual General Meetings. Private Limited Companies are required to have at least two Directors, as well as a Company Secretary (can be one of the Directors)
There will be a consolidated Companies Act signed into law before 2015 in Ireland, which will re-name this type of company a ‘Company Limited by Shares’ (or ‘CLS’s for short). when this legislation is passed it will allow for a single Director company, once a separate Company Secretary is appointed.