Legislation Of Nonprofit Corporates
The situation with regard to nonprofit incorporation of companies is currently under scrutiny with the likelihood of the introduction of legislation in this area before the end of this year.
At present it is unclear what exactly will be contained in such legislation but it is widely thought that one of the changes will mean that registration will determine residence (presumably in addition to the existing management and control test set out above). It is also thought that under the proposals, every company registered in Ireland will have to have at least one director who is normally habitually resident in the European Union.
The following are the methods by which such a company can be acquired:
* Ordinary company formations take between three and four weeks at present.
* This firm is a member of a scheme which has been agreed with the Companies Registration Office for urgent formations. A standard printed set of Memorandum and Articles of Association has been agreed and does not require to be checked by the Companies Registration Office. This procedure can be used only when the company is required for immediate trading purposes and a declaration to this effect must be submitted by one of the proposed first directors. Adopting this procedure, incorporation should take approximately ten days.
* Shelf Companies already formed by Company Formation Agents can be bought immediately on demand. The Agents generally have a variety of companies available from limited to unlimited, public and private etc. The objects contained in the Memorandum of Association of the company are generally in standard form and these companies will have an issued share capital of IrPd2.00. Once purchased, the objects can be tailored to suit the business to be carried out by the company, the share capital can be increased and the existing directors and secretary will be replaced by those taking over the company. General requirements
1. Under Irish company law, a company must have at least one shareholder, although it is more common to have two each owning at least one share each. Shares are issued by the company in registered form (details of the identity of the shareholder or his nominee must be registered with the company) and it is not possible for shares to be held in bearer form. 2. A company has a stated authorized share capital which is the aggregate par value of the shares that the Memorandum and Articles permits the company to issue. There is no limit to the authorized share capital a company may have and the share capital can be stated in any combination of currencies as well as Irish Pounds. The authorized share capital may be increased or reduced by a special resolution of the members of the company. 3. A company can issue shares up to the maximum authorized share capital level. The company must also have at least two Directors who must be individuals for the time being and a Secretary (who can, if required, be one of the Directors, or can itself be a corporation).
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