Guarantee companies - UK Limited Company Formation Searches. What is a charitable company limited by guarantee? Can a charity be limited by a guarantee? Your charitable companies will have to be limited by guarantees rather than shares when you register. Select ‘private company limited by guarantee ’ on the form.
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It is incorporated and benefits from limited liability for its members. A charity company limited by guarantee is ideal because it can be formed with non-profit objectives in mind. Guarantors take the place of shareholders and there is no distribution of profit through dividends in the usual manner. Companies limited by guarantee are widely used for charities , community projects, clubs, societies and other similar bodies.
Most guarantee companies are not-for-profit companies - that is, they do not distribute their profits to their members but either retain them within the company or use them for some other purpose. Like other types of private limited company , a company limited by guarantee : Is incorporated at and regulated by Companies House and subject to the Companies Acts. Is subject to rules on its name.