Unlike a standard limited company, there are no shareholders or shares - there are guarantors who agree in advance to pay up to an agreement amount towards company liabilities.
Again, unlike a standard limited company, profits are not generally distributed to the shareholders because any surplus funds should be re-invested to help the company achieve its social or other aims. Guarantors are legally entitled to take profits from the limited company but, if they do so, the company will lose its right to be considered as a not-for-profit enterprise.
As with a standard limited company, a company limited by guarantee has its own legal identity and the personal finances of its guarantors are protected because of the pre-agreed limit of liability put in place at formation and from that point onward.
Your Company Formations has been involved in the successful setting up of hundreds of companies limited by guarantee. Our team of experienced staff will work with from you right from the initial set-up through to the point of establishment of your company limited by guarantee and beyond.
Companies limited by guarantee are not a suitable legal vehicle for the formation of a charitable company. Please click on our "Charity" page to find out more.
For help and advice on forming a charitable company, please call us on +44(0) 207 689 7888 or email us at email@example.com.
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Registering a company limited by guarantee at Companies House