What is a Company Limited by Guarantee?
• A public company limited by guarantee is one which carries out non-profit making activities that have some basis of national or public interest, such as for promoting art, charity etc. • The company has no share capital. • A company limited by guarantee has members, rather than shareholders, the members of the company guarantee/undertake to contribute a predetermined sum to the liabilities of the company which becomes due in the event of the company being wound up. The sum set aside as guarantee may be as low as SGD 1. • A Singapore company setup as a public company limited by guarantee must include the suffix “Limited” in its name. However after incorporation, the company may apply to Singapore authorities for the removal of the word “Limited” from its name. One condition of this exclusion is that the company does not distribute profits. • A company limited by guarantee is a legal entity which exists in its own right in the eyes of the law, separate and distinct from the individuals
