Private Company Limited by Shares (LTD)

A Private Company Limited by Shares (LTD) is a modern subtype of the conventional private limited company. LTDs in Ireland are governed by the terms and condition stipulated in the Companies Act of 2014. The majority of the Limited Liability Companies (LLCs) registered in Ireland opt for this type of business entity, especially companies in the private sector and profitmaking enterprises. 
 
The members of a Private Company Limited by Shares have limited liability, i.e. their liability does not exceed the investment they put into the business. Usually, these companies would have a constitution or Memorandum & Articles of Association stating the terms and liability of the respective partners. Unlike in DACs, their constitution does not contain an objectives clause. Thus, the entity can conduct their business operations in any field that the directors and shareholders deem profitable and lawfully appropriate.  
 
Small to medium enterprises are only required to submit shortened and concise financial statements with limited details to the Companies Registration Office (CRO). Such companies can also be exempted from audits if the turnover is below €8.8 million. In this case, an Annual Return has to be prepared and submitted on a yearly basis to adhere to the regulations of CRO notwithstanding the lack or presence of trading activities in that trading year. 
 
The LTD entity can have a minimum of one director. However, in that situation, the employment of another unconnected secretary is mandatory. LTDs can have a minimum of 1 and a maximum of 149 shareholders/members. In this business entity, having an Annual General Meeting is not prerequisite. Decisions and agreements can be reached through special and ordinary majority written solutions. The legal title of this kind of business entity must have the suffix “Limited” or “Teoranta”.