A private limited company is a business that is owned by between one and 149 shareholders. This is the most common type of business in Ireland. A private limited company only pays 12.5% corporation tax on its profits.
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A private limited company is a business that is owned by between one and 149 shareholders.
Each owner of a private limited company is called a shareholder because they all buy shares of the business. The more shares a shareholder owns, the larger their share will be of any profits the business makes. Each shareholder’s share of the profits is called a dividend. The capital required to set up private limited company can be raised by selling shares to the shareholders.
i i A shareholder is a person who owns one or more shares in a company.
Shareholders in a private limited company enjoy the protection of limited liability. This means they are not held personally responsible for business debts.
Limited liability means that shareholders are not personally responsible for business debts and can only lose the amount they have invested in the business.
Since the introduction of the Companies Act 2014, there are two types of private limited company in Ireland:
• A private company limited by shares (CLS). These companies can offer any services or goods.
• A designated activity company (DAC). These are companies that have been set up for a very specific purpose (e.g. an investment company or an insurance company).