Guides

Limited by Guarantee are most often formed by non-profit organisations such as sports clubs, workers’ co-operatives, and membership organisations.

A company limited by guarantee does not have any shares or shareholders but is owned by guarantors who agree to pay a set amount of money towards company debts.

All profits will be re-invested to help promote the non-profit objectives of the company.

No profits will be distributed to guarantors.

Why would I incorporate a company limited by guarantee?

This is for non-profit organisations such as sports clubs, community centers, and worker co-operatives.
If your company has the purpose of raising money to promote a cause rather than taking profits then you would set up this type of company.

• Who owns a company limited by guarantee?
• - This company would be owned by guarantors who do not own shares in the company and do not take any profit.
  - The guarantors would agree to pay a sum of money known as a ‘guarantee’ if the company has any debts or becomes insolvent.
• Who can be a guarantor?
• - This can be any person or a corporate body.
  - Their details will be registered with Companies House and displayed on public record.
• How many people are required to register a company limited by guarantee?
• - You will need at least one director and one guarantor.
  - One person can assume both positions.