Frequently Asked Questions
What is a company limited by guarantee?
A company limited by guarantee is typically used by non-profit organisations. This type of company has guarantees and guarantors rather than shares and shareholders.
Why would I choose this package?
It is ideal for anyone setting up a not-for-profit company such as a workers’ co-operative, membership organisation, club, or sports association.
A limited by guarantee company structure is very popular for non-profit organisations because it provides limited financial liability to the company owners (guarantors). This means their personal finances are legally protected if the company encounters any financial difficulty or is sued.
What is the difference between a guarantor and a shareholder?
The main difference is that a guarantor will not normally take any profits out of the business in the way a shareholder would. Instead, all profits are usually re-invested in the company to aid the fulfilment of its objectives.
Is this package suitable for setting up a charity?
No - it is unsuitable for setting up a charity because a charitable company requires a special memorandum and articles of association that details the specific objects of the company. The articles provided are unsuitable for this purpose.
What is the confirmation statement?
The confirmation statement is a document that must be filed annually, providing Companies House with up-to-date information about your company. This package includes the preparation and filing of your first confirmation statement.
Please note: This service is renewable every 12 months and does not include the Companies House filing fee of £34.00. At the time of filing your first confirmation statement, we will take payment of £34.00 using your payment card details securely stored in your account.