The shareholders are the owners of the company and they hold the Issued shares. There
needs to be a minimum of one shareholder
with a maximum of 149 for private limited companies. For a single member company, i.e. a private limited company
with only one shareholder, the shareholder
and Director can be the same person.
Shareholders can be from anywhere in the world with corporate bodies allowed to act as shareholders.
When setting up a company, the shareholders will sign the Constitution of the company and the signing of
Constitution needs to be witnessed.
Authorised Share Capital
The Authorised Share Capital is the maximum amount of share capital a Directors are
authorised to issue to a company's shareholders under the Constitution of the company.
We recommend an Authorised Share Capital of 100,000 shares at €1 each for most companies. When registering
a company through Incorporate Ireland, we will automatically set the Authorised Share Capital at this
The Authorised Share Capital is shown on a Limited company's Constitution at point 4:
"4. The share capital of the company is EUR 100000 divided into 100000 shares of EUR 1.00 each."
Authorised Share Capital after company has been incorporated requires updating the Constitution and notifying
the CRO, so it is advised to keep the number of shares quite high.
Issued Share Capital
This is the number of shares that have actually been allotted to the shareholders of the
company. Most companies
would issue 100 shares and divide them between the shareholders as desired. One person or company can hold
all the shares.
Given an Authorised Share Capital of 100,000 shares and an Issued Share Capital of 100 shares, the
Directors can at any time in the future issue another 99,900 shares to any person. It is important
that the Directors follow Company Law when issuing shares.