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Limited by Guarantee Companies

Designed for organisations that are not-for-profit

Why it’s commonly used:

  • Members' liability is limited to their guarantee amount (typically £1 or £10), protecting personal assets such as homes or savings if the company cannot pay its debts.
  • The company is a separate legal entity, able to enter contracts, own property, and incur debts independently of its members.
  • No share capital is required and profits must be retained within the organisation, making it the standard structure for non-profits and community organisations needing a formal legal identity.
  • More credible to funders, donors, and partners than an unincorporated association, and often a requirement for grant applications.
  • Exists indefinitely beyond its founding members, making it ideal for charities, membership bodies, and community organisations built to last.

💡 Best suited for: Non-profit organisations, charities, social enterprises, and community groups that want a structured, legally recognised entity while ensuring all profit is used to further their mission.