Understand the basic distinction
CRO guidance distinguishes an LTD without an objects clause from a DAC with defined objects. A DAC requires at least two directors. An LTD can have one director, with a separate secretary. These differences are a starting point for discussion; they do not establish that one type is suitable for every founder.
Ask why a particular structure is being suggested
If a lender, investor or business partner requests a DAC, ask for the reason and the actual wording of their requirement. A request tied to a specific transaction deserves a different discussion from a casual recommendation. Share the requirement with the adviser choosing the structure so they can assess it against your intended activities and future commitments.
Think about how the company will operate
List the people willing to act as officers and the decisions the founders expect to make. Consider who will approve new projects, how major changes will be reviewed and what outside funding is planned. These practical questions help expose a structure that would be awkward to manage, even where the initial filing itself appears straightforward.
Confirm the service scope before ordering
Our advertised formation packages focus on Irish LTD formation. If your adviser recommends another type, ask the team to confirm whether that work is available and obtain a specific scope before paying. Do not use an LTD package as a shortcut around a structural question. Keep the advice and final decision with the formation instructions for future reference.
Your practical checklist
- State the intended activities and funding plans
- Obtain any investor or lender requirements in writing
- Identify available directors and secretary
- Discuss structure with a qualified adviser
- Confirm that the provider’s scope covers the chosen type
Sources and editorial notes
Official guidance and any referenced service information checked 11 October 2026. These are original preparation notes with illustrative examples; they do not replace individual legal or tax advice.
Author and publisher: Ireland Company Formation, operated by COMMERCIAL ADMINISTRATION BUREAU LIMITED. For a correction or question, contact the team.
Keep exploring
Irish company types: LTD, DAC and CLG or browse every founder article.