A Company Limited by Guarantee refers to a type of business structure that is designed for non-profit organisations that produce income for community-based, charitable or social objectives.
It is ideal for charities, social clubs, sports associations, cooperatives, and membership organisations.
Every profit generated by the company is used for the good of the company.
A company limited by guarantee must be enrolled with Companies House.
A company limited by guarantee can be operated by anyone who wants to set up a non-profit organisation and social enterprise, either individually or jointly.
It protects individual liability and boosts the professional integrity of their business enterprise.
It should have at least one director and one guarantor.
Director and guarantor can be the same person.
There can be one or more directors and guarantors of the company.
It is the ownership of guarantors who pay an agreed amount of money towards the company’s debts.
Directors run the business operations and financial investments.
There is no share or shareholder in this type of company structure.
It should have a registered office address in the country of incorporation. Please watch the video given below for more information: