What is a Company Limited by Guarantee?

The company limited by guarantee is a type of company legal structure used by not-for-profit organisations, social or community projects, charities and clubs and membership associations that require legal company status in the UK.  

Because it is a separate legal entity from it’s owners, protects those who are running the company from personal liability for any debts that may arise upon insolvency or winding up.

A company limited by guarantee is very similar to a private company limited by shares (also known as a Limited Company). However, the main difference is that it cannot have shareholders nor can it raise capital by selling shares.

A Company Limited by Guarantee is also subject to a number of rules set out by HMRC and Companies House which means their reporting requirements are also different from a Limited Company.

Like all Companies, a Company Limited by Guarantee would need to first register as a company with Companies House and HMRC for Corporation Tax – before it can start trading legally. 

Form your limited by Guarantee Company today for just £23.99 + VAT >>

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