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Requirements to Establish a Limited by Guarantee Company

Legal requirements to establish a limited by guarantee company

Requirements to Establish a Guarantee Company

Legal requirements to establish a limited by guarantee company: this organisation is a form of corporate entity that is often used by non-profit organisations in order to retain the benefits that come with limited financial liability. A limited by guarantee company does not have shareholders but is owned by guarantors who do not generally receive profits, but who commit to contributing a set amount towards the company debts. Such a company limited by guarantee is effectively a complete legal entity, separate from its owners, and the personal finances of its guarantors are protected.

There are a number of essential legal requirements associated with registration of a limited by guarantee company. The most important of which is registering with Companies House, the official register of companies in the UK. A limited by guarantee company must also have at least one named guarantor and one director. It is acceptable for the same person to fulfil both roles but all details of guarantors and directors will be held on record by Companies House.

You must also provide a registered address as part of the process of establishment. This will be the official company limited by guarantee address that is displayed in the public record, and has to be a physical postal address located in the same country where the company is registered.

Finally, there are two important documents to be drawn up before the company can be registered. The first is the memorandum of association, which details the identities of every guarantor and confirms their agreement to set up the company, and the second is the articles of association, which set out the regulations and rules, that the company has to abide by.

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If you are planning to register a company limited by guarantee in London, but you don’t know where to start, it is a good idea to get in touch with a specialist provider, such as Coddan Formations Agency. We offer a fast, efficient, 24/7 service and can help with the full range of corporate solutions, from bespoke company limited by guarantee registration to the provision of registered address services. Our speedy and effective online service ensures that your transactions with Companies House are handled with the minimum of fuss.

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