UK Private Company Limited by Guarantee
There are three different limited company formations we offer: What is a UK Limited Company by Guarantee? A company Limited by Guarantee is an alternative type of limited company used mainly for non-profit organisations such as clubs, sports associations and charities It can also be referred to as a Limited by Guarantee Company (this is the name Companies House use) a Private Company Limited by Guarantee or simply an LBG What are the features of a Company Limited by Guarantee? -It does not usually have a share capital or shareholders but instead has members who act as guarantors. -The guarantors give an undertaking to contribute a nominal amount (typically very small) in the event of the winding up of the company. It is often believed that it cannot distribute its profits to its members but (depending on the provisions of the articles) this is not actually true. A company Limited by Guarantee that distributes its profits to members would not be eligible for charitable status. A Limited by Guarantee must include the suffix "Limited" in its name, except in circumstances specifically excluded by law. One condition of this exclusion is that the company does not distribute profits. What are the most common uses of Limited by Guarantee companies? Clubs, Membership organisations, including students' unions, Sports associations, Workers' co-operatives, Other social enterprises, Non-governmental organizations (NGOs), Charities. How does the Limited by Guarantee with Privacy package work?
We give you permission to use our London, N1 as your company’s registered office (the official address for the company) and your company officers’ service address (the official address for company officers) for one year. After this period the package automatically renews.
Proof of ID We have a legal obligation to check Proof of ID and Proof of Address. This is to ensure we comply with Anti-Money Laundering (AML) regulations and 'Know Your Customer' (KYC) requirements. Please take a look at our Alphacompanyformations guide to see which documents we can accept. Who needs to provide Proof of ID and Proof of Address documentation? When forming a Private Company Limited by Guarantee the account holder and all company officers must provide Proof of ID and Address documentation. This is to ensure that we comply with Anti-Money Laundering (AML) regulations and ‘Know Your Customer’ requirements. We are unable to offer our company registered office and/or service address service until this information is provided. Are companies limited by guarantee suitable for commercial enterprises? No. Under section 5 of the Companies Act 2006, new companies cannot be formed as a company limited by guarantee with a share capital. Can you form Section 60 companies? Section 60 companies are companies without the word 'Limited' at the end of the company name. We cannot currently form these companies. For information about, take a look at our Alphacompanyformations guide to picking an entity. |
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