Written in conjunction with TMF Group

As Ireland gears up for its 2016 general election, the government has enacted a new Companies Act leaders hope will increase business opportunities, reduce complexity, and modernize the country’s legislation.

Ireland has always been a hospitable location for investors and multinational corporations thanks to its favorable tax rate and highly skilled workforce.

Irish leaders hope to build upon and improve the country’s strong infrastructure with the new Companies Act, which will consolidate all of the country’s previous company laws into one constitutional document.

Some of the changes introduced by the Act include:

• The creation of a “designated activity company” (or DAC). The DAC must have at least two directors who can live anywhere in the world.
• Previously the number of directors at a private company limited by shares was two. The Act reduces that number to one.
• Small groups now fall under the small companies audit exemption.
• The idea of authorized share capital has been removed for private companies limited by shares.
• Some companies may opt to forego the requirement to hold an Annual General Meeting.
• Organizations that are an Unlimited or Designated Activity Company may need to change their name.

As most of Ireland’s political parties share a similar view on financial regulations the upcoming elections are not expected to impact the Act. While Ireland is celebrated for its pro-business regulations, there are some unique challenges to investing and running a company in the country. Read more about doing business in Ireland.

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