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Private Company Limited by Guarantee

Simplified online registration process, Business Bank Account and lots more...

Features on offer:
  • Very quick online formation (Registration wrapped up within 3 working hours)
  • Barclays Business Bank Account (optional)
  • Incorporation Certificate: Hardcopy
  • Emailed Memorandum and articles
  • You will gain access to our important London office address for one whole year. We will then forward you the company‚Äôs official government post (from HMRC, Companies House etc). The service can be renewed annually but is again optional.

Private Company Limited by Guarantee

Avail a Private Company Limited by Guarantee without registered office.

£49.99

Limited by Guarantee along with registered office

You will gain access to our important Essex office address for one whole year. We will then forward you the company’s official government post (from HMRC, Companies House etc). The service can be renewed annually but is again optional.

£89.99

Limited By Guarantee Company Formation

A private company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company 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. However a company limited by guarantee that distributes its profits to members would not be eligible for charitable status.

Like a private company limited by shares, a company 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.

Common uses of guarantee companies include clubs, membership organisations, including students' unions, residential property management companies, sports associations (such as the PGA European Tour), workers' co-operatives, other social enterprises, non-governmental organizations (NGOs) and charities (such as Oxfam). The railway infrastructure provider Network Rail, domain name registry Nominet UK, England and Wales Cricket Board and IXPs LINX (London Internet Exchange), and LONAP (London Access Point) are also companies limited by guarantee. 

Under section 5 of the Companies Act 2006, new companies cannot be formed as a company limited by guarantee with a share capital; which makes this type of company unsuitable for commercial enterprises.

Due to the nature of the transaction we have decided not to automate the formation of a company limited by guarantee. Our price for the formation is £149.99 + VAT. Companies House filing fee of £14.00 will be added on top of this price. You will be provided with a bound copy of company register, certificate of incorporation and all hard copies associated with this formation.

FAQs for Private Company Limited by Guarantee 

What do you mean by a ‘private company limited by guarantee’?

Often used by non-profit organizations, A company limited by guarantee, is an alternative company type.

What features does Company Limited by Guarantee offer?
  • It doesn’t have share capital or shareholders but rather has members acting as guarantors.
  • An undertaking is given by every guarantor, who pledges to contribute a very small sum of money during company wind up.
  • There are a few certain notions which say that profits cannot be distributed amongst its members(which depends on article provisions), which are false in nature.
  • Charitable status cannot be claimed by a company limited by guarantee which distributes its profits amongst its members.
  • The word “Limited” must be suffixed to the name of every company limited by guarantee, otherwise in circumstances specifically excluded by law. One prerequisite is that profits must not be distributed amongst the members.
List out some common uses of guarantee companies
  • Clubs
  • Membership organizations, including students' unions
  • Sports associations
  • Workers' co-operatives
  • Other social enterprises
  • Non-governmental organizations (NGOs)
  • Charities (such as Oxfam)
Can commercial companies become companies limited by guarantee?

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?

No, we cannot form these companies. Section 60 companies are those which do not have the word “Limited” at the end of their name.