Can charities form limited by guarantee companies?


I have got a question about limited by guarantee companies. Four years ago, we set up a scholarship scheme in memory of our son, and since then we’ve had offers all over the place about ways to expand that scholarship into a regular presence in the community. We’re finally ready to act on that and take this to the next level, and so we want to form a charity. As part of that, it makes sense to incorporate with the government as a company, but I wasn’t sure whether charities can actually form limited by guarantee companies. Is this possible?



Absolutely. A limited by guarantee company is one of the most popular legal structures used by charities and other non-profit organisations.

To set up a charitable company, you must first register a company limited by guarantee with Companies House. You can submit an application online and get your company set up in just a few hours.

When your company registration is approved, you will have to apply to register the company as a charity with the Charity Commission (England and Wales), the Scottish Charity Regulator or the Charity Commission for Northern Ireland.

Companies House has nothing to do with charity registration so you will have to deal with two separate governing bodies to set up and run your charitable company.

2 years ago

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