Companies Limited by Guarantee

We can incorporate for you in the UK a Private Company Limited by Guarantee.

A company limited by guarantee does not usually have a share capital or shareholders, instead it has members who act as guarantors. The guarantors give an undertaking to contribute a nominal amount, typically £1 in the event of the winding up of the company.

Charitable Companies Limited by Guarantee

An alternative type of incorporation used primarily for non-profit organisations that require corporate status.

It cannot distribute its profits to its members and is therefore eligible to apply for charitable status if necessary. Common uses of guarantee companies include clubs, membership organisations, sports associations and charities.

  • Non-profit company
  • Suitable for clubs, membership organisations and sports associations
  • Can apply for charitable status
  • Members have limited liability

Advantages of Companies Limited by Guarantee

The biggest benefit of incorporating a company limited by guarantee, is that those managing the company are not personally liable for any debts the organisation may incur.

  • They have legal identities separate from its members
  • Individual members are almost totally protected against liability
  • They can buy and sell property in the name of the organisation
  • Companies are generally democratic organisations - they have a membership
  • The majority of voluntary organisations do not have to have the word limited in their title