Profits and Funding in a Limited by Guarantee company

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Raising investment

Companies limited by guarantee do not have any share capital or shareholders. Many companies limited by guarantee are instead funded by grants or other goverment schemes.

What happens to profits 

While companies limited by guarantee are not formally prevented by the from sharing out their profits with their members, such restrictions are typically included in the memorandum and articles of association of the company, and profits are usually re-invested in the company or used to promote its social or not-for-profit objectives.

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