What is a Guarantee Company?

A company limited by guarantee is an alternative type of incorporation used primarily for non-profit organisations that require corporate status. A guarantee company does not have a share capital, but has members who are guarantors instead of shareholders. The guarantors give an undertaking to contribute a nominal amount towards the winding up of the company in the event of a shortfall upon cessation of business. It cannot distribute its profits to its members, and is therefore eligible to apply for charitable status if necessary.

Common uses of guarantee companies include clubs, membership organisations, sports associations and charities.

Price and how to order

Our charge for incorporating a company limited by guarantee is £120.00 plus VAT. This is slightly higher than for ordinary companies limited by shares as there are specific details including the company’s objects that must be included in the Articles of Association. We will contact you having received your order to ascertain further details that we require in order to prepare the appropriate governing documents. As with all our incorporations, our Articles of Association for Companies Limited by Guarantee have been fully updated to comply with the Companies Act 2006.

Please contact us by email or telephone on 0161 440 8884 to discuss your requirements in more detail if necessary.