Forming a company limited by guarantee in the United Kingdom
Why to open a company limited by guarantee in the United Kingdom? When you create a company limited by guarantee, you are required to appoint at least one guarantor who is responsible for covering any company debts up to an agreed amount. This allows guarantors to be responsible for a nominal amount (usually £1.00), therefore protecting them from losing any of their own money in the event of accruing company debt.
A company limited by guarantee essentially enjoys the prestigious "limited" status which creates trust among potential clients and suppliers, with much less risk. It's valuable credibility for an incredibly low incorporation cost, which is why so many organisations choose Coddan to set up guarantee companies.
Companies limited by guarantee are typically incorporated by not-for-profit organisations, including (but not limited to) workers' co-operatives, private members' organisations and sports clubs, whose owners want to enjoy limited financial liability.
A limited by guarantee company in the Great Britain doesn't have shareholders or shares and is instead owned by guarantors, each of which agrees to pay an agreed amount towards company debts. No profits are automatically distributed to these guarantors, as profits are re-invested in order to promote the objectives of the organisation. Portions of the company profits can be distributed to the owners, although the company will automatically lose its right to charitable status if this is the case.
If you're intending to set up a non-profit organisation, a company limited by guarantee makes sense. The personal finances of the company guarantors are protected, with guarantors only responsible for any debts up to their agreed amount.
"Limited" status affords a company limited by guarantee some professional credibility, which increases trust among investors and clients alike, thus ensuring that a guarantee company objectives are more effectively met.
With us, it couldn't be simpler – we offer affordable packages tailored to the needs of our customers. Before applying to start a limited by guarantee company in England, please be aware of the following: -
- Companies limited by guarantee must, by law, be registered with Companies House.
- Companies limited by guarantee require a minimum of one guarantor and one director, each of which will be noted on public record. An individual is entitled to assume both positions.
- Guarantee companies are required to provide domiciled office address details during the formation process. This is the address that will be noted on public records, and must be a full postal address in the country of a company limited by guarantee registration.
- During the company limited by guarantee formation process you are required to create a memorandum of association whilst adopting articles of association. This memorandum states the name of each guarantor and their agreement to become a company member. At Coddan, we provide memorandum and articles which are suitable for use by a limited by guarantee company.
If you're looking to create a company limited by guarantee in the UK, Coddan is one of the market leaders in helping to establish companies limited by guarantee in London, Liverpool, Glasgow and Manchester. We can offer help to set-up a none for profit organisation in England, Wales, Scotland or Northern Ireland quickly and efficiently and at low prices.
Our online UK company limited by guarantee formation form is simple to fill out, and from there, that's it - Coddan will handle the rest of the details and paperwork, and help you to overcome any potential hurdles in setting-up of your company limited by guarantee in the main cities - London, Liverpool, and Manchester.
As well as our vast experience and expertise, Coddan also offers great value and a speedy and efficient service. Founding the company limited by guarantee takes place as quick as within one to five hours, with fees from just £39.49. Even if you're not resident in the Great Britain, or even a citizen, that's no problem, either. We have offices all over the United Kingdom and can help you to incorporate a company limited by guarantee quickly and easily from abroad.
If you're looking to form a company limited by guarantee in the Great Britain, get in touch with Coddan and fill out our online form for registration. It only takes five minutes, and we'll handle the rest from there, helping you open your company limited by guarantee to serve your community within a matter of hours. We offer a range of incorporation packages for our services, so you can choose which is best for you, and we can also advise you on which one to choose. If you want to take the hassle and time out of the paperwork required for a UK company limited by guarantee formations in London, Liverpool, and Manchester, get in touch through our website or by telephone today.