Llc Limited Company With Guarantee
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FAQ
Benefits of companies limited by guarantee A company limited by guarantee is a distinct legal entity from its owners and is responsible for its own debts. The personal finances of the company's guarantors are protected. They will only be responsible for paying company debts up to the amount of their guarantees.
A company limited by guarantee is a company without shareholders or shares. Typically used by non-profits and charities, this type of company is controlled by guarantors (members), who guarantee a nominal sum of money to the company in the event of its becoming insolvent or winding up.
A company limited by guarantee is not required to have a share capital; instead, the members are called guarantors and are expected to agree to a particular amount to be guaranteed to be paid upon the company winding up. A company limited by guarantee cannot be formed for the sole purpose of making profit.
How many people do I need to set up a limited by guarantee company? Unless the company's articles of association states to the contrary, you must have a minimum of one member (guarantor) and one director to set up a limited by guarantee company, and there is no upper limit.
One of the largest companies limited by guarantee is Bupa, the healthcare company, which has 32 million customers in more than 190 countries and which employs more than 84,000 people around the world.