Company limited by guarantee is used by organisations which are non profit making but requires corporate status such as clubs, trade associations, societies and educational establishments. If you are aiming to apply for a charity registration, the first step will be to establish such a company. It is normally chosen by people who would like to register their voluntary association, social enterprises or community groups in the form of a legal entity.
• Such a vehicle is preferred because members are not normally supposed to benefit from the company’s profit (its aim in most of the cases is to the benefit of third parties.)
• Unlike normal limited companies, Guarantee companies do not have a share capital and shareholders. Instead there are members who give an undertaking to contribute a nominal amount in the event of the company being wound up.
• Normally such a company will not distribute its profits to its members. In most cases it is used for common good causes.
• People choose such a vehicle because of its democratic structure; the company is controlled by members who elect a management committee known as the board of directors.
If you wish to form your company limited by guarantee, just use the pull down menu to choose the type of company. If you are not too sure just pick up the phone and dial 02074073778.