---
title: Limited by Guarantee Companies
description: Limited by Guarantee Companies
---
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1. [Register a Company](https://help.rapidformations.co.uk/register-a-company?hsLang=en-gb)
2. [Company Types & Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb)
3. [Common Business Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#common-business-structures)
# Limited by Guarantee Companies
## Designed for organisations that are not-for-profit
### Why it’s commonly used
- **Members' liability is limited** to their guarantee amount (typically £1 or £10), protecting personal assets such as homes or savings if the company cannot pay its debts.
- The company is a **separate legal entity**, able to enter contracts, own property, and incur debts independently of its members.
- No share capital is required and **profits must be retained within the organisation**, making it the standard structure for non-profits and community organisations needing a formal legal identity.
- More credible to funders, donors, and partners than an unincorporated association, and **often a requirement for grant applications**.
- **Exists indefinitely beyond its founding members**, making it ideal for charities, membership bodies, and community organisations built to last.
💡 **Best suited for:** Non-profit organisations, charities, social enterprises, and community groups that want a structured, legally recognised entity while ensuring all profit is used to further their mission.
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- [Company Types & Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#main-content)
- [Getting Started](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#getting-started)
- [Common Business Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#common-business-structures)
- [Specialist & Strategic Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#specialist-strategic-structures)
- [Social & Non-Profit Structures](https://help.rapidformations.co.uk/register-a-company/company-types-structures?hsLang=en-gb#social-non-profit-structures)
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