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ARTICLE · 25 JUNE 2012

Legal Tips For Tech Start-Ups – June 2012

The Irish tech start-up scene has never been stronger.

IrelandCorporate/Commercial Law

The Irish tech start-up scene has never been stronger. There are dozens of incubators and accelerators active in this space and the government and state agencies are working hard to create a start-up friendly ecosystem.1Arthur Cox has a rich heritage of working with high potential Start up Technology Companies. We set out below some basic rules of thumb tha tare intended to assist entrepreneurs in circumnavigating the various legal challenges that typically arise.

Corporate Structure

  • Almost always the preferred corporate vehicle is a private company limited by shares. Unlimited companies are an "absolute no" for venture capital funds.
  • The main benefit of this is limited liability for the shareholders while providing flexibility for future fundraisings. Getting the structure right from the start is considerably more cost efficient than commencing under a generic "shelf" company structure which may require considerable customisation later.

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