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Coddan CPM Ltd. – Company Registration Agent in the UK
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Advantages to Register a Limited by Guarantee Company

Advantages to register a limited by guarantee company

Register a Guarantee Company

Advantages to register a limited by guarantee company in UK: as the financial capital of Europe, the City of London boasts a wealth of opportunities for both domestic and international businesses, and there are plenty of reasons why international clients should consider registering a company limited by guarantee in the city - including a wealth of benefits not offered anywhere else in the world.

Many international firms decide to register a company limited by guarantee in the UK in order to access new customers, to create business relationships with new suppliers and to use London as a gateway to doing business on the continent. Despite the recent Brexit vote, business between Britain and Europe is still booming, and the amount of international companies registering in London is testament to this.

How the registration of a company limited by guarantee could benefit you: London (and the UK in general) is home to the joint-lowest level of corporation tax in the G20 at a current level of 20 per cent. The UK also has a number of double-tax treaties and agreements with other countries, meaning that international companies limited by guarantee in London won't pay corporation tax on any foreign dividends or assets.

The Great Britain also offers plenty of help and advice for overseas companies – the Department for International Trade offers free services to help international companies limited by guarantee to identify market opportunities, and provides ongoing support to companies after they have incorporated and established themselves in the United Kingdom.

Why choose a company limited by guarantee? A company limited by guarantee is a private entity which has guarantors instead of shareholders. It’s the perfect platform for voluntary organisations and not-for-profit ventures, although it is also suitable for other types of entity.

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Members of guarantee companies generally agree to cover a fixed amount of money (known as a guarantee) towards the debts of the company in the event of it going into liquidation. This is typically a nominal amount of £1 or thereabouts. Ultimately, the guarantors are therefore protected in the event of the failure, and won't accrue any personal debts. Given the low-risk of a guarantee company coupled with low taxation and free independent help, the advantages of registering a company limited by guarantee are easy to see.

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