N on-profit organizations sometimes require the status of corporates in order to function effectively. These include organizations such as clubs, associations, and societies as well as educational or charitable organizations. These organizations gain a lot of credibility by becoming a legal entity. The best option is to become a company limited by guarantee.

There are many advantages to becoming a company limited by guarantee as a result of which lots of organizations do this. If you are planning to start a charitable organization or any group that is not meant to be a commercial entity then you will benefit from doing do.

Important features of a limited by guaranteed company include:

• Members of the guarantee company will not gain any benefit from any profit the company generates. Profits, if any, are generally intended for the benefit of third parties and are definitely not intended to be distributed amongst the members.
• Such a vehicle does not have a share capital and shareholders. As opposed to normal limited companies, the members of a Guarantee company are only required to commit to paying a specific amount in case the company is closed down.
• A Limited by Guarantee company is preferable for non-profitable organizations because of its democratic structure. The people who control the company get to elect a management committee. This committee is known as the board of directors.

It is very easy for you to form a company limited by guarantee. Our company makes it very easy for you to do so. Get in touch with us at the earliest with your requirements and we will help you form a company.