In order to facilitate the formation of LLCs, the Tax Amendment Act 2014 introduced a formation privilege in the Limited Liability Companies Act, which reduces shareholders´ risk capital from €35,000 to €10,000 while the privilege applies. This reduction of shareholders´ economic risk also applies in insolvency cases. As a result, shareholders need not pay more where insolvency proceedings are opened within the 10-year period.
Alexander Isola, ILO Newsletter, October 3, 2014
