LTD vs DAC vs CLG in Ireland

How common each type is

Dissolved companies often carry older labels such as “Private limited by shares” or “Private”. These pre-date the Companies Act 2014, which converted existing private companies into the new types. The CLG count includes licensed CLGs that are exempt from using the suffix.

Side-by-side comparison

LTD: private company limited by shares

The standard Irish company. An LTD has share capital and limited liability: if it is wound up, members are liable only for any amount unpaid on their shares. It has no objects clause, so it has the same capacity as a person to do anything lawful.

An LTD is the only type that can have a single director. It must then have a secretary who is a different person. All directors must be over 18, and a company cannot be a director. An LTD can have up to 149 members, can pass majority written resolutions and can dispense with holding an AGM.

DAC: designated activity company

A DAC is a private company whose constitution sets out the objects it exists for. It can only do what those objects allow. Businesses choose a DAC when they want that capacity clearly limited: special purpose vehicles, some charities and management companies, and companies whose lenders or investors want defined activities.

A DAC needs at least two directors and must hold an AGM if it has two or more members. Most are limited by shares; a DAC can also be limited by guarantee with a share capital.

CLG: company limited by guarantee

A CLG has no share capital. Members promise to contribute an amount set in the constitution if the company is wound up. That suits organisations that want limited liability without raising money from members: charities, clubs, sporting bodies, professional associations and residents’ groups.

A CLG needs at least two directors. Charitable and other not-for-profit CLGs can apply for an exemption from using “CLG” in their name, which is why some guarantee companies have no suffix at all.

PLC and unlimited companies

A PLC can offer shares to the public. Its allotted share capital must be at least €25,000, at least a quarter of it paid up before it trades or borrows, and it cannot claim audit exemption. Investment companies and European companies (SEs) are forms of public limited company.

In an unlimited company, members are personally liable for its debts without limit. It can be private (ULC, which must have share capital) or public (PUC with share capital, PULC without). Groups sometimes use unlimited companies because, in some circumstances, they are exempt from filing financial statements with the CRO.

Reading the suffix on a company record

• The suffix is a strong clue but not proof: CLGs and DACs can be exempt from it, and older records use pre-2014 labels.
• Always go by the company type shown on the register, which appears on each company profile.
• If a business calls itself a PLC but the register shows an LTD, or the reverse, ask why before you rely on it.