One of the major benefits of forming a company is that it is a separate legal entity and, therefore, is separate and distinct from those who run it. The company (and not the individual shareholders) would be sued in the event that debts are incurred by the company which remain unpaid, despite demand.
A Form A1 is completed and submitted to the Companies Registration office (CRO) together with a constitution (Only a one document constitution if the company is a LTD company, a memorandum and articles of association for all other company types).
There are a number of company types:
The shares in a company are owned by its shareholders. If the company is a limited liability company, the shareholders’ liability, should the company fail, is limited to the amount, if any, remaining unpaid on the shares held by them. A company is a separate legal entity and, therefore, is separate and distinct from those who run it. Only the company can be sued for its obligations and can sue to enforce its rights.
There are several types of limited company:
In an unlimited company, there is no limit placed on the liability of the members. Recourse may be had by creditors to the shareholders in respect of any liabilities owed by the company which the company has failed to discharge. An unlimited company can be either public or private. The main benefit of an Unlimited Company is that most are not required to file financial statements with the CRO.