Reregistration from a Designated Activity Company to Private Limited Company

For companies in Ireland, the decision to transition from a Designated Activity Company (DAC) to a Limited Company (LTD) can be significant. This change may be considered when a company was initially formed as a DAC for a specific purpose, and circumstances have evolved, requiring more flexibility in business activities. Here’s a simplified view of why this transition might be necessary and the steps involved, all while considering the Companies Act 2014, the Companies Registration Office (CRO), the Revenue Commissioners, the Tax Act Ireland, and the Corporate Enforcement Authority:

Why Transition from DAC to LTD?
Companies might find themselves in a situation where their initial purpose as a DAC has evolved or lapsed, and they now need the freedom to diversify their activities. Transitioning to an LTD can provide this flexibility.

The Legal Framework

The process of changing a company’s status from a DAC to an LTD is regulated by Part 20 of the Companies Act 2014, a legal framework that outlines the steps and requirements for this transition.

Steps for Transition

1. Board of Directors Meeting: Begin by holding a meeting of the Board of Directors. During this meeting, the board discusses the re-registration and recommends to the company members that a special resolution be passed. This resolution can be adopted either at an Extraordinary General Meeting (EGM) or through a written resolution.

2. EGM or Written Resolution: Next, convene an Extraordinary General Meeting of the Company, or alternatively, pass a Written Resolution. During this meeting or resolution, the company adopts a new Constitution. This Constitution reflects the company’s need for greater flexibility in its business activities and authorizes the company to apply to the Registrar of Companies for re-registration as an LTD.

3. Submission to CRO: Once these steps are completed and the Special Resolutions have been passed, the relevant documents and papers are submitted to the Companies Registration Office (CRO). This submission should take place within 15 days of passing the Special Resolutions.

4. CRO Processing: The CRO processes the submission, and upon approval, they issue a Certificate of Incorporation for the re-registration. This certificate will be provided in a digital format.

How We Can Assist
Navigating the transition from a DAC to an LTD can be a complex process, especially when you have a company to run. We specialize in assisting companies with the legal and administrative aspects of this transition.

Our comprehensive service covers all the necessary steps for re-registration, ensuring compliance with the Companies Act 2014 and other relevant regulations. We understand that for companies, simplicity and efficiency are paramount, and we ensure the process is as smooth and stress-free as possible.

We offer a tailored package for changing your company’s status, which covers all essential procedures. Feel free to reach out to our dedicated team of professionals if you have any questions or need further information. We’re here to support your company’s journey towards success.