New types of private companies under Companies Act 2014. The options
No doubt you have heard about the changes in company law that commenced in June 2015.
If you need to form a new company you now have more options.
New private companies can decide to be formed either as:
(1) a private company limited by shares - LTD, and the company name will end in LTD; or
(2) A designated activity company, which is a private company limited by shares, - a DAC, and the company name will end with DAC.
Which option should I choose?
This will depend on the type of business you want to set up - for example a credit institution cannot be a LTD.
Do you want to set up the company for a particular purpose and for no other purpose - then a DAC may be suitable. It is most likely that you will elect to form a LTD, a private company limited by shares due to its favourable and flexible benefits.
To discuss your options please contact us.
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The material in this article is for general information purposes only and does not constitute legal or taxation advice. Specific legal and taxation advice should be sought before acting. All information and taxation rules are subject to change without notice.
No liability whatsoever is accepted by M. McLoughlin & Co. for any action taken in reliance on the information in this article