Q&As

Does a private company limited by guarantee have to be a not-for-profit entity?

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Published on LexisPSL on 04/05/2017

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • Does a private company limited by guarantee have to be a not-for-profit entity?

The process for incorporating a company limited by guarantee is almost identical to setting up any other company (see Practice Note: Companies limited by guarantee). The differences are:

  1. the Form IN01 must include a statement of guarantee instead of a statement of capital

  2. the proforma memorandum of association for companies without a share capital should be used

A proforma memorandum can be found at ‘Give notice of subscribers: company not having share capital’.

Since the implementation of the Companies Act 2006, the information provided on any memorandum is limited, with the memorandum being little more than a simple statement that the ini

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