Company limited by guarantee members Essential guide for business owners.

Company limited by guarantee members. A company limited by guarantee (CLG) is a type of company where the liability of members in the event the company is wound up is limited to a (typically very small) amount listed in the company's articles or constitution. Fill in Details: Provide all the necessary information, including the company name, registered office address, members' details, directors' details, company secretary's details, and financial year end. In a company limited by guarantee, members of the company only bear limited liability up to the agreed guarantee amount provided at the time of the company’s winding-up. Apr 28, 2025 · Learn about establishing a company limited by guarantee in Hong Kong, ideal for non-profits, including benefits, legal requirements, and setup procedures. Get clear insights now! A company limited by guarantee is a company which does not have a share capital and the constitution of which provides that the liability of its members is limited to such amount as the members may, in the constitution, respectively undertake to contribute to the assets of the CLG in the event of it being wound up. Mar 29, 2022 · Company limited by guarantee is also known as Guarantee Company. The members have limited liability as the total amount of their liability in the event of the company being wound up. Apr 3, 2025 · A Company Limited by Guarantee (CLG) in Singapore is tailored for non-profit organisations with members, not shareholders, who act as guarantors. A company limited by guarantee having a share capital incorporated before February 13, 2014 (i. the date when such type of company can no longer be incorporated under Sep 25, 2023 · A company limited by guarantee is a not-for-profit business set up to serve social, charitable, community-based or other non-commercial objectives. Feb 20, 2024 · Where 50% or less of the receipts from Singapore members are tax-deductible under the Income Tax Act, only income from transactions with non-members are taxable. This means that if the company ends (is wound up) and it can’t pay all of its debts, each member may be required to contribute an amount up to, but no more than, the stated guarantee amount. Essential guide for business owners. In a layman’s term, it refers to a company lacking shareholder but owned by a member known as guarantors who assures to pay a nominal amount in the case of wound up. It is important that the Company Secretary is aware of who the company members are, and understands there is a legal obligation to maintain an accurate and up-to-date register of members. Instead, the company has guarantors – also called members. This fact sheet provides information on member rights and obligations for companies limited by guarantee. Feb 12, 2019 · New companies limited by guarantee do not have shares or shareholders. . This guarantee is usually £1. Guarantors: are company members control the company and make important decisions The members agree in writing (known as a ‘guarantee’) to pay a nominal amount (usually between $10 and $100) to the company. Applying for Charity Status for a Company Limited by Guarantee A CLG may want to apply for charity status as this allows the CLG to obtain full tax exemption on its income. Apr 30, 2025 · Learn how to legally incorporate a non-profit in Hong Kong as a company limited by guarantee. May 6, 2025 · Uncover how companies limited by guarantee offer flexible, tax-efficient structures ideal for nonprofits and clubs. When setting up a company limited by guarantee you must have at least one guarantor and a ‘guaranteed amount’. Mar 25, 2025 · How to Set Up a Company Limited by Guarantee (CLG) in Singapore Setting up a Company Limited by Guarantee (CLG) in Singapore involves meeting legal requirements and following a straightforward registration process. 2 Although CLGs incorporated under the Company Ordinance cannot have a share capital, companies limited by guarantee incorporated before February 13, 2014 could have share capitals3. It provides credibility, limited liability, and a governance framework aligned with mission-driven organizations. e. The main difference between a company limited by guarantee and one limited by shares is that the liability of shareholders is limited to the amount unpaid on shares, whereas the liability of guarantors (the members of a company limited by guarantee) is limited to the amount that they guaranteed. [1] May 10, 2024 · Unlike companies limited by shares, where the liability of members is determined by the amount unpaid on shares they hold, in a CLG, members’ responsibilities are defined by a predetermined amount each member agrees to contribute towards the company’s debts, known as a guarantee. Aug 27, 2025 · A Company Limited by Guarantee is the standard vehicle for non-profits and charities in Hong Kong. This information is intended as a guide only and is not legal advice. They agree, upon becoming members, to guarantee a fixed amount towards the company’s debts in the event of liquidation. Rather than distribute profits to members, guarantee companies typically retain any surplus income for reinvestment or use it to promote the non-profit objectives of the business. Feb 13, 2025 · New Company: Select the option to "Apply for new business entity name" and choose "Company Limited by Guarantee" as the type of company. crblfx jcnmdhm vmb hbp krkqziq lbg dacf ruwkr vbhapx vvzo