UK LBG(Limited By Guarantee) Company

Suitable for charity

This package includes:

This service is ideal for independent charities, charitable start-ups and other non-profit organizations, such as societies, sports groups, associations, colleges, universities and volunteer organizations.

LBG - Limited by Guarantee formation service
Certificate of Incorporation
Included free of cost with company formation service.
Vat Registration £499
Business Telephone £10/month
Registered Office £50
A unique address for VAT registration £1499

How does a company limited by guarantee work

  • Ideal for non-profit organizations such as charities, sports associations, social clubs, cooperatives, and organizations of membership.
  • It should have at least one director and one guarantor
  • Director and guarantor can be the same person.
  • There is no limit to the number of directors and guarantors of the company unless determined by the Articles of Association.
  • There are no shares or shareholders in this type of company structure.
  • It should have a registered office address in the country of incorporation. 

What does it mean by a company limited by guarantee

An LBG company differs from a system based on the equity in that it has no shareholders or share capital. Rather, it's composed of members who each act as guarantors. The guarantors can also be referred to as "members," "trustees," "governors" or "members of the committee," depending on the organisation.

Guarantees have several key duties at the company, including:

  • Project formation 
  • According to the corporate priorities and objectives 
  • Appointing or dismissing Directors, whose job is to handle the company's day-to-day activities (this can be the guarantor itself) 
  • Agreement of the competences of the directors


  • You have to have at least one principal and one guarantor. A guarantor can play both roles or you can choose to have multiple managers and guarantees 
  • Required details on all directors and guarantees must be put on public record
  • You will have details of an address at the registered office during the company forming process. This official address for the organization will then be published in the public record. In the country where the business is registered, it must be a full postal address (i.e. not a PO box) 
  • You must complete an Association Memorandum and follow Articles of Association during the establishment process

This package includes:

  • Limited Company formation service
  • Certificate of Incorporation
  • Registered Office
  • Vat Registration
  • An address for Vat registration
  • Business Telephone
  • PDF File of Statutory Books
  • PDF File of Certificate of Incorporation
  • PDF File of Minutes of the first meeting of Directors
  • PDF File of Share Certificate(s)
  • PDF File of Memorandum & Articles of Association
  • Companies House filing fee paid by us
  • Free Online Company Manager to Maintain your Companies
  • Ready to trade limited liability partnership
  • Web authentication code to update Companies House records
  • Free Online consultation for your Company

LBGs with objects and services of the charity

A business must have gross profits above £6000 per annum minimum to be registered with the Charity Commission. However, if a corporation has a lower income because its items are charitable, and the Articles restrict the use of funds and profits to charitable purposes, a corporation can also obtain tax exemptions from HMRC.

This service provides Association Articles which you will need to edit. Properly written papers will provide you with a charitable organization (but not a registered charity) that meets the tax exemption requirements of HMRC.

Do not add the business name with the word "charity."

The Companies Act deems "Charity" a sensitive term. If you are registered with the Charities Commission, the word can not be used on your company's behalf.

First, incorporate your business, then register with the Charities Commission once you fulfil their requirements. If you are a charity known you can simply change the name of the organization.

Association Articles for An LBG of Charitable Objects

Our Articles of Association include provisions that you will need to amend which are allowed by the Company Acts which HMRC This will allow you to obtain tax exemptions if your turnover remains below £5000 and you do not have the suffix "LTD" or "Limited" in your company name

Where a corporation wishes to remove "Limited" or "Ltd" from its name and be considered.

Such clauses are:

  • A clause which states the company's charitable objects.
  • A clause which states that its revenue will be used to promote its artefacts.
  • A clause which prohibits income being distributed to its members.
  • A provision requiring the transfer of all the properties otherwise available to its members to another entity with items identical to its own.

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