Limited by Guarantee (LBG) companies are a unique type of business entity that serve the needs of non-profit organisations, charities, social enterprises, and clubs. At New Company Group, we specialise in providing comprehensive services and guidance for Limited by Guarantee companies, helping them navigate the legal and operational aspects with ease.
Limited by Guarantee companies are formed for non-profit purposes and are commonly used by organisations that do not distribute profits to their members or shareholders. Unlike traditional companies that have shareholders, LBG companies have guarantors who provide a guarantee to cover the company’s debts up to a specified amount, typically a nominal sum like £1.
Non-profit Structure LBG companies are specifically designed for organisations focused on achieving social, charitable, or community-oriented objectives. They operate under the principle of reinvesting any surplus funds back into their mission rather than distributing profits.
Guarantors Instead of Shareholders Instead of shareholders, LBG companies have guarantors who provide a guarantee to cover the company’s obligations in case of financial difficulties. Guarantors are usually members or directors of the organisation and are liable for the amount they guarantee.
No Share Capital Unlike traditional companies, Limited by Guarantee companies do not have a share capital or issue shares. Guarantors contribute a nominal amount as their guarantee, which represents their liability to the company.
Governance and Legal Obligations LBG companies must adhere to legal and regulatory requirements specific to their non-profit nature. This includes maintaining appropriate governance structures, filing annual accounts and reports with relevant authorities, and ensuring compliance with charitable and tax regulations.
At New Company Group, we understand the unique challenges faced by Limited by Guarantee companies. Our range of services are designed to support you at every stage of your organisation’s journey:
We will guide you through the process of forming and registering your Limited by Guarantee company, ensuring all necessary legal requirements are fulfilled.
Our experts will assist you in establishing appropriate governance structures, drafting governing documents, and providing ongoing support to ensure compliance with regulatory obligations.
We offer specialised accounting and financial services tailored to the needs of Limited by Guarantee companies. From bookkeeping and financial reporting to budgeting and tax compliance, we have you covered.
We will help you navigate the complexities of annual compliance, ensuring that your company’s accounts, reports, and filings are prepared accurately and submitted on time.
Our experienced advisors can provide strategic guidance and support, helping you define and achieve your organisation’s mission and goals effectively.
Choosing the right partner to assist you with your Limited by Guarantee company is crucial. At New Company Group, we have the expertise, knowledge, and dedication to provide you with top-notch services tailored to your specific needs. Our team is committed to helping you navigate the legal and operational aspects of your organisation, allowing you to focus on making a positive impact in your community.
Contact us today to learn more about our Limited by Guarantee company services and how we can support your non-profit organisation’s success.
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Company registration number 10654358 Service address 54 Charlbury Crescent, Yardley, Birmingham B26 2LL
