What is a guarantee company?
A limited by guarantee company is one which has not been established to earn profits for its members, but rather to carry out a particular purpose. The members’ liability is only 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. Guarantee companies are not required to raise funds from the members, yet they still retain the benefits of limited liability and a separate legal personality. This type of company is favoured by groups of people coming together for a common purpose and who wish to have the protection of limited liability. Charities, residential associations, property management entities, educational organisations, sports clubs, trade associations, and professional most commonly use this type of company. Once your guarantee company is formed, you may later apply for charitable status from the Revenue Commissioners on projects which are set up for charitable, scholastic or religious purpo
