Company Limited by Guarantee
Company Limited by Guarantee without a Share Capital
With the introduction of the Companies Act 2014 a Company Limited by Guarantee can be incorporated with as few as a single member and no maximum number of members, but the constitution of the Company Limited by Guarantee must specify the number of member(s) with which it is to be registered. Every Company Limited by Guarantee must have a minimum of 2 directors. It is a company which has not been established to earn profits for its members but rather to carry out a specific purpose.
The members liability is limited to the amount they have undertaken to contribute to the assets of the company, being not less than €1 in the event that the company is wound up. Limited by Guarantee companies do not have a share capital, they are not required to raise funds from the members and they still retain the benefits of limited liability and a separate legal entity.
This type of company is preferred by groups of people coming together for a common purpose, it is used for charitable and professional bodies who wish to have the protection of limited liability. Company Limited By Guarantee or the abbreviation Company Limited by Guarantee must appear in the title of the company name.
Uses for a Company Limited by Guarantee
- Charities – Charitable status can be applied for to the Revenue Commissioners on projects which are set up for charitable, scholastic or religious purposes
- Residents Associations
- Property management
- Owner management property companies
- Sports clubs
- Trade Associations
- Professional bodies
Advantages of Companies Limited by Guarantee:
- They have legal identities separate from its members
- Individual members are almost totally protected against liability
- They can buy and sell property in the name of the organisation
- They can take or defend legal proceedings in its own name
- Companies are generally democratic organisations – they have a membership
We can advise on all aspects of incorporating your Company Limited by Guarantee in Ireland, detailed help and assistance is provided every step of the way.