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Why
form a guarantee company?
By definition, a "guarantee company" does not make
profits. However, it provides the same kind of limited liability
protection as for a “company limited by shares”.
It also shows to the outside world (including possible contributors
or funding bodies) that the enterprise is not being run for
personal profit.
NOTE:
Trustees/Directors of
companies limited by guarantee are not
allowed to be employed by or take a salary from the company.
If you intend to be
a paid staff member of the new organisation you must consider:
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Should you register a normal “company
limited by shares”?
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Are you willing to relinquish control
and be an employee, but not a Director or Trustee?
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Your Memorandum of Association must
show the 'Objects' (aims) of the company. You need to provide
brief statements ('bullet points') that we can embed into
the document.
 examples
of “Objects” wording
for Charities
examples
of “Objects” wording
for other
not-for-profit companies
IMPORTANT NOTE FOR CHARITIES:
After forming your “charity limited by guarantee” you must
register the new company with the Charity Commission (see
their website here)
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