Start a a non-profitable organisation in United Kingdom: there are many benefits to starting a limited by guarantee company for non-profit organisations. A major plus is that registration os a company limited by guarantee enables the owners to benefit from limited financial liability. Unlike companies limited by a shares structure, a company limited by guarantee doesn't have shares or shareholders. Instead, it's owned by guarantors, who have agreed to pay a sum of money towards any company debts.
The profits are not distributed among the guarantors. Instead, any profits will be re-invested to aid the non-profit aims of the organisation. If the profits are distributed to the owners, the organisation loses its right to apply for charitable status.
Any company limited by guarantee becomes a distinct legal entity from its owners. It's responsible for any debts, while the guarantors' personal finances are protected. They take responsibility for paying any company debts only up to the amount of their agreed guarantees.
This status builds confidence and trust among investors and clients. Attaining professional credibility is crucial in helping a company to achieve its objectives. It's relatively simple to start a company limited by guarantee. All such entities must be registered at Companies House, the UK's Registrar of Companies.
There must be at least one director and one guarantor. Both positions may be filled by a sole individual, or there can be a number of directors and guarantors. Details of all the guarantors and directors will be available on public records. Every guarantee company must provide details of their registered office address during the process to register the non-profit company. This is an official company address that will be displayed on public records. By law, it needs to be a full postal address in the country where the company limited by guarantee is registered.
Procedure and regulations about company limited by guarantee registration: during the formation process, a memorandum of association must be completed and articles of association must be adopted. The name of each guarantor is stated on the memorandum and details of their agreement to set up a company limited by guarantee and become members. The rules and regulations that the company has to follow are outlined.