Irish limited partnership registration vs private company formation in Republic of Ireland: if you are setting up a business in the Republic of Ireland, there are two common options for structuring your business. You could form a private company or you could opt for a limited partnership registration. But what is the difference between the two?
Irish LP vs Irish LTD: an Irish limited partnership is where two or more people come together to do business, with the aim of making a profit. The rules concerning Irish limited partnerships date back to the Limited Partnerships Act of 1907 and the Partnership Act of 1890.
A limited partnership has to consist of a number of general partners, who have unlimited liability for the debts of the business, and up to 20 limited partners. The liability of the limited partners is capped at a certain level and ultimately they have less input in the running of the business.
If the idea of unlimited liability is a concern, then you can consider registering a private limited company. These companies are considered to be separate legal entities, which mean that your liability is capped, so you are not constrained by the fear of ending up with unlimited responsibility for company debts, enabling you to take reasonable business risks.
Upon the registration of most of business entities in the United kingdom, you will require to register information about the person with the significant control, who does not need to be the ultimate beneficiary owner of your business organisation. Anyway, when you set-up a limited partnership in Republic of Ireland, you are exempt from such rules. You do not need to file information about the beneficiary owners or person with the significant control of your business.