Do you need to be a UK resident to be named a guarantor for a company limited by guarantee?

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Hi, guys. I’ve got a quick question about LBG companies. We are getting ready to incorporate a fencing society here in Edinburgh as a limited by guarantee company. We are a non-profit, but will probably not apply for charitable status. My question is as follows: we have got a sister organisation in Massachusetts in the USA, and so when I asked society members for volunteers to step up as guarantors for our new Scottish company, two Americans put their names forward. But can a non-UK resident be named as a guarantor for a UK limited by guarantee company? Just trying to suss out whether that’s allowed.

Thanks,

Christopher George

Answers

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Hi Christopher,

Yes, that’s absolutely fine. You can have non-UK resident guarantors for a UK limited by guarantee company. Their details will be placed on public record so do be sure to inform them of this.

Most guarantors do not receive any remuneration from non-profit companies, but, if they do, they may have to pay tax in the UK. Best to speak to an accountant to clarify their tax position.

a year ago
 

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