Private Company Limited by Guarantee

Its an another possibility and approach to business structure that are mainly used by non profit organizations. They are maintained by multiple guarantors who must guarantee a certain amount of money to the business in the event of insolvency. Generally, Guarantors doesn’t take any kind of profit from business and all the surplus remuneration is been put back to the company and is used to promote its non-profit objectives. Limited by Guarantee company doesn’t have any share capital or shareholders.

What you get?

• 3 hour online formation service
• Business Bank Account (optional)
• Printed certificate of incorporation
• Memorandum and articles by email

£99 Package includes Whitechapel registered office worth £49.99

You get use of our Whitechapel registered office for one year and we forward all your company's official government post (HMRC, Companies House, Government Gateway) to you. This service is renewable on an annual basis but is not compulsory.

Proof of ID

It is much more mandatory to check proof of your ID and also the proof of all the customer’s address who uses our address services just because to ensure that we follow Anti-Money Laundering regulations.

Private Company Limited by Guarantee FAQs

A company limited by guarantee is an alternative type of company used mainly for non-profit organisations.

What are the main features of a Company Limited by Guarantee?

• It does not usually have a share capital or shareholders but instead has members who act as guarantors.
• The guarantors give an undertaking to contribute a nominal amount (typically very small) in the event of the winding up of the company.
• It is often believed that it cannot distribute its profits to its members but (depending on the provisions of the articles) this is not actually true.
• A company limited by guarantee that distributes its profits to members would not be eligible for charitable status
• A limited by guarantee must include the suffix "Limited" in its name, except in circumstances specifically excluded by law. One condition of this exclusion is that the company does not distribute profits.

What are the most common uses of guarantee companies?

• Clubs
• Membership organisations, including students' unions
• Sports associations
• Workers' co-operatives
• Other social enterprises
• Non-governmental organizations (NGOs)
• Charities (such as Oxfam)

Are companies limited by guarantee suitable for commercial enterprises?

No. Under section 5 of the Companies Act 2006, new companies cannot be formed as a company limited by guarantee with a share capital.

Can you form Section 60 companies?

Section 60 companies are companies without the word ‘Limited’ at the end of the company name. We cannot currently form these companies.