While setting up as a sole trader in Ireland does not involve numerous legal formalities, it has its share of risks. The owner has the liability for the success or failure of the company. It is to limit this liability that entrepreneurs often prefer to set up a private limited company instead.

Here is a step by step guide to setting up a business in the form of a limited company.

Step 1: Select the Company Name. The company name must be unique, distinctive, available and acceptable. You need to complete a name check before you submit it to the Companies Registration Office (CRO) to make sure that it is available for incorporation.

The approval of the company name is essential within a month from the date you adopt it. You may use the advanced electronic system for name reservation available from the CRO to reserve the company name for a maximum of 28 days.

Step 2: Decide the Share Capital. You need to determine the number of shares that will belong to each of the shareholders. The minimum share capital you need to set up a limited company in Ireland is €100.

Therefore, you can complete the company incorporation process if you issue 100 shares, each with a value of €1. Make sure the nominal share capital is adequate, so that you can issue additional shares whenever you need.

Step 3: Select the Directors, Company Secretary and Shareholders.

You cannot incorporate a private limited company in Ireland if you do not have these entities. Here are the requirements in this regard:

• At least two Directors are necessary to manage the daily activities of the company; of them, one must be an EU national
• A Company Secretary, an individual or a corporate body, is necessary to file and maintain all documents and accounts
• One or more Shareholders have the shares in the company; they may or may not be Irish residents

Step 4: Determine the Principle Activities. You need to prepare the memorandum and the articles of association for incorporation. This memorandum must provide an outline of the principle activities of the company.

If you are availing the help of a company formation service, you may let them handle the preparation of the memorandum and the articles of association. However, you will need to specify your business activities for them.

Step 5: Choose a Registered Office. Your company must have an official address; even if it is not the trading address. You need to mention the registered office address to complete the company incorporation process.

All the official documents must have this address. However, you need to keep in mind that post boxes are not acceptable in this regard. If finding an office space is difficult, you may opt for a virtual office instead.

Step 6: Complete the Incorporation Process. If you are availing the help of a third-party provider to create a company, they will prepare the pre-registration documents for the incorporation of your company. They will also complete the legal formalities.

After the Directors and/or Shareholders check and sign the incorporation documents, the third-party provider will submit it to the CRO. If every step in the process has been completed properly, your company will be incorporated within 3 to 5 days.

Author Bio

Alias Hamilton has experience in working as a consultant providing helpful guidelines about the companies registration procedure. If you are looking for more information about setting up an Irish limited company, he suggests you visit http://www.cadima.ie/ for further details.