Why are companies limited by guarantee exempt from putting 'limited' at the end of their names?

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This might be a silly question, but it’s been bugging me. I just formed a limited by shares company, and it’s going to be great. But that “Ltd” they made me tack onto the end of my company name drives me crazy. To add insult to injury, I’ve just learned another company type, limited by guarantee, does not have to add that pesky “ltd”. How does that work, if they are still technically (and grammatically) a limited company?

Answers

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Limited by guarantee companies may apply for exemption from the requirement to include ‘Limited’ or ‘Ltd’ (or the Welsh versions, ‘cyfyngedig’ or ‘cfy’) at the end of their names only if their articles of association contain the following provisions:

  • The objects of the company are the promotion or regulation of commerce, art, science, education, religion charity or any profession incidental or conducive to any of those objects.
  • All income received by the business must be used to promote its objects.
  • The company is prohibited from paying dividends or any return or capital to its members.
  • When the company is wound up, all assets that would otherwise be available to its members must be transferred to another body with similar or charitable objects.

You can apply for exemption when you’re completing your company formation application, but you may also apply after your company has been set up. You can do this through your formation agent or by completing Companies House form NE01.

a year ago
 

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