business germany ireland
What is the Irish equivalent of a German UG entity?
<p>I am looking at some options for eventually starting a small business in Ireland (several years from now, I'm at a very early stage).</p>
<p>In Germany, from what I understand, there is an entity type called a UG. It is smaller than a GmbH and requires less work/money to stay in compliant operation, but it's larger than a sole proprietorship and allows for both protection of personal assets and future growth. From what I understand, many people find UG entities good for small businesses -- think of a few employees, with the possibility to expand to a few dozen.</p>
<p>Is there an equivalent entity type in Ireland?</p>

<p>You are likely looking for a <em>private company limited by shares</em> (Ltd).</p>
<p>The German UG and GmbH are certain kinds of limited companies. Here, &quot;limited&quot; means that liability is limited to the company's capital, thus protecting the company's owners. This is in contrast to a sole proprietor, who is liable with all their assets. In order to protect customers and business partners, German law expects the limited company (GmbH) to have a capital of at least EUR 25.000. The UG is a baby-GmbH, with equivalent bureaucracy requirements and similar liability protection, but requiring only a peppercorn as starting capital (at least EUR 1, typically at least a few hundreds so that it can actually start operations). The UG will however eventually convert to a GmbH because 25% of profits must be accumulated until the GmbH starting capital is reached.</p>
<p>Irish Ltds do not have comparable minimal capital requirements, though public companies (PLCs) do. Ireland alternatively allows liability to be limited by a guarantee rather than having to invest money up front for shares.</p>
