What is an Unincorporated Entity and when are they used?

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Caitlyn

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An 'Unincorporated Entity' sometimes referred to as an 'unincorporated company' is a business that doesn't need to undergo the incorporation process. These businesses are registered as an extension of the owner(s) and have unlimited liability, meaning that the owner's personal assets can be seized to cover the debts or liabilities of the business.

The following business structures are classified as unincorporated entities:

Sole Trader – A single person can register a business name and operate as a sole trader. In Ireland, a sole trader business is connected to an individual’s PPS number for taxation purposes.

Partnership – Two or more members share the investment and management of a business. The partners share the profits, and should the business come into difficulty they share the responsibility for the liabilities/debts of the business.

Sole Trader and Partnership businesses are relatively easy to set up, the first step is to Register a Business Name with the CRO – Registration with the Revenue Commissioners is also required.

Friendly Society / Cooperative – This type of structure is owned and controlled by its members who often are closely associated with the producers or consumers of the products or services. These businesses have a range of social characteristics and require permission from the Registrar of Friendly Societies.

Please note: It is no longer possible to register a new Co-Op or Friendly Society. The change was introduced following the application of Section 5 of the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014.

Unincorporated Entities are legitimate business structures, however, because they are not incorporated, technically speaking they are not companies.

Continue reading about Unincorporated Entities.

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