Oswalds Guarantee Company

Companies limited by guarantee are private limited companies where the liability of the members is limited. The limitation of liability takes the form of a member guaranteeing to pay a nominal sum (£1 commonly) in the event of the company being wound up while they are a member or within one year of their ceasing to be a member. Unless the company was incorporated before 22 December 1980 it will not have a share capital.

Like a company limited by shares, a company limited by guarantee requires to be registered at Companies House through the submission of various statutory forms and its constitutional documents - the articles of association. It is only once the certificate of incorporation is issued that the company comes into existence.

Companies limited by guarantee can be used for a variety of purposes. They can be used for charitable activities or a variety of non-charitable activities such as clubs, societies, and trade associations.

Guarantee companies can apply for exemption of the use of the word "limited" from the company name provided the company meets the conditions for exemption.

For further information on our guarantee company formation services please contact Alister Gillies on 0131 200 7124 or by e-mail alister_gillies@oswalds.co.uk