Can I set up a company Limited by Guarantee on your website?

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Can I set up a company Limited by Guarantee on your website?

Can I set up a company Limited by Guarantee on your website?

Yes, you can set up a company limited by guarantee on our website. Please click here for more information.

A company limited by guarantee is a type of corporation that is primarily used by non-profit organisations requiring a legal personality.

Following are the main features of a Company Limited by Guarantee:

  • A guarantee company does not usually have a share capital or shareholders
  • Instead it has members who act as guarantors.
  • The guarantors give an undertaking to contribute a nominal amount (typically very small) in the event of the winding up of the company.
  • It is often believed that it cannot distribute its profits to its members but (depending on the provisions of the articles) this is not actually true.
  • However a company limited by guarantee that distributes its profits to members would not be eligible for charitable status.


As is the case with private limited companies that are limited by shares, a company limited by guarantee must also include “Limited” as a suffix in its names. There are certain circumstances that are specifically excluded by law, such as a company that does not distribute profits is not mandated to suffix “Limited” in its name.
Some of the common used of guarantee companies are as follows:

  • clubs
  • membership organisations, including students' unions
  • sports associations
  • workers' co-operatives
  • other social enterprises
  • non-governmental organizations (NGOs)
  • charities (such as Oxfam)

Section 5 of the Companies Act 2006 states, that new companies cannot be incorporated as a company limited by guarantee with a share capital. It is for this reason that companies limited by guarantee are unsuitable for commercial enterprises.
What's included

  • Printed Certificate of Incorporation
  • Memorandum & Articles by Email
  • Registered Office - London EC1


Please Note: This package is provided with our EC1 registered office for 1 year, whereby we forward on all your company's statutory post. This service is renewable on an annual basis.
You will be prompted to enter your company name after payment, during the formation process.


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