Limited by Guarantee (LTD)

A company Limited by Guarantee is an alternative type of limited company used mainly for non-profit organisations. It can also be referred to as a Limited by Guarantee Company (this is the name Companies House use), a Private Company Limited by Guarantee or simply an LBG. We can assist you in forming a Limited by Guarantee company from our package page. 

Here are some quick facts about this type of company structure:

• A Limited by Guarantee company have "members" instead of shareholders as owners, they are otherwise known as "Guarantors" and they must agree to pay a nominal amount in the event of the company dissolving (closing down) or if something goes wrong within the company. 
• They are generally non-profit companies (although in some circumstances profits can be made and "distributed" but you will not be able to have "charitable status" if that is the case).
• All limited companies must be registered at Companies House. All limited companies should submit a 'Confirmation Statement' (previously known as an Annual Return) to Companies House each year as well as their Annual Accounts.

What are the most common uses of Limited by Guarantee companies?

• Clubs
• Membership organisations, including students' unions
• Sports associations
• Workers' co-operatives
• Other social enterprises
• Non-governmental organizations (NGOs)
• Charities

When registering a Limited by Guarantee company, you'll need:

• A company name
• At least one director - must be 16 years or older and, can be of any nationality and live anywhere in the world. You can appoint a company as a director but you must have at least one "person" also. 
• At least one member/ guarantor 
• Details of people with significant control (PSC)
• A UK registered office
• Your Standard Industrial Classification (SIC code)
• To check whether you need to register for VAT
• A business bank account - to keep your personal and business finances separate (this is optional)
• A licence for some business activities - not all companies need a licence but use the licence finder to find out