If you are taking the big step to starting your own business, you should familiarise yourself with the various types of companies that are out there. You can select one that best suits your needs based on the benefits and costs associated with each option.
Finding the perfect type to suit your needs shouldn’t be too difficult as there is a range of formations out there to choose from. Each different kind of company does come with its own unique regulations and requirements that must be adhered to. Hiring a professional formation agent can greatly simplify the process of establishing your company.
Here is a brief look at just four of the various options that are available to you:
Public Limited Company
A public limited company, or commonly known as a PLC, is a company whose policy permits its shares to be bought by the general public who may be interested . A company of this formation does have certain requirements some of which are: it must be in possession of a trading license and must also have two directors and also two shareholders in its formation.
Private Limited Company
Another common type of company is a private limited company sometimes abbreviated to “Ltd.” This formation also has shareholders but they have limited liability. This type of company differs from a PLC in the sense that shares will not be given to the general public. Setting up a private limited company also comes attached with some basic requirements: it must have a registered office, must contain a minimum of one euro share capital and all company accounts must abide by certain filing guidelines.
Limited Liability Partnership
Sometimes known as LLPs, limited liability partnerships are corporate organisations whose presence is usually self sufficient from that of its members. Members of the company usually agree to an LLP agreement where everyone shares a joint responsibility for actions that may take place within the company. Therefore, no single person is held responsible for any other members actions. There are a number of requirements when setting up an LLP and they can vary depending on the company itself.
A co-operative must consist of at least seven people whose responsibility it is to draw up a set of rules and regulations that will ultimately govern the operation of the society. This list must be approved by the registrar for approval. Co-operatives are registered under the Industrial and Provident Acts.
After you have decided on what type of company best suits your needs, you can begin the formation process. Using the services of a reputable formation agency is the most efficient way of getting started. They will take away the stress by making the whole process as smooth and hassle free as they possibly can. This will give you plenty of extra time to start making plans for the future and deciding what direction you want the business to take.
Once your company is formed and all the necessary paperwork is completed and filed, it’s time to launch your business and begin to generate some cash flow!