corporete building

Limited Company

A limited company is a separate legal entity. The owners are shareholders, and its directors make decisions on behalf of the company. As a separate entity it has sole responsibility for its debts. Its liabilities are limited to the paid-up share capital, therefore the company is said to have "limited liability".

Advantages of a Limited Company

  • Limited liability - in general, shareholders are only liable to lose the share capital they subscribe.
  • Pension contributions can be made at the Company's expense.
  • Raising finance can be less difficult.
  • There can be many owners of the business.

Disadvantages of a Limited Company

  • Limited liability may be neutralized as lenders, in practice may seek personal guarantees.
  • Legislative requirements may be costly and time consuming.
  • The need to prepare and file audited accounts with the Companies Registration Office.
  • There are surcharges on undistributed investment incomes.

Definition of a Sole Trader with a list of advantages and disatvantages. Read More

Definition of a Limited Company, showing the advantages and disadvantages. Read More

Explanation of what Business Transactions are and what they consist of. Read More

Outline of what is involved in an audit. Read More

Details of what constitues the Annual Return. Read More

How to avail of the Audit Exemption. Read More