A Company Limited by Guarantee is a type of company that does not have a share capital or shareholders and is usually formed to manage a charity or not for profit organisation such as a sports club or political party.

Rather than having shareholders a limited by Guarantee Company will have guarantors (or trustees), such individuals enjoy limited liability status but guarantee to pay a predetermined sum (usually £1.00) in the event of winding up the company.

What is the difference between a Guarantee company and a Company limited by shares?

As mentioned above a company limited by guarantee does not have a share capital or shareholders. Such companies also have a list of predetermined ‘objects’ stipulated in their Memorandum of Association, the objects define what the company will do and usually include a clause to restrict the directors from paying out any profits to the trustees, but rather to reinvest any profits in fulfilling the company's objects.

How do I set up a Company Limited by Guarantee?

Using our intuitive Incorporation Wizard you can form a company Limited by Guarantee quickly and easily. All forms are completed online and the average turnaround from payment to receipt of your company registration number is 4 hours. The cost for incorporating a company limited by guarantee is £69.99 + vat this is inclusive of the statutory filing fee of £20.00.