Private Company Limited by Guarantee /
Not for Profit (NPO) Incorporations
A private company limited by guarantee is mainly used by non-profit organisations, such as: charities, schools, clubs or trade associations.
An NPO is an organization that supports activities of public or private interest without any commercial or monetary profit, such as charities, health care, the environment, humanitarian aid, education, the arts, animal protection, social issues, politics, religion, research, sports etc.
An NPO can accept, hold and disburse money or other things of monetary value. It can also legally trade at a profit or hold investments exclusively for attaining the organization's aims.
The extent to which an NPO can generate income may be constrained and the use of any profits may be restricted both in purpose and proportions.
NPOs are usually funded by donations and grants. NPOs can attain tax exempt status if specifically requested and donations can be tax deductible.
This type of company formation does not have share capital. Rather than shareholders the company has members who are guarantors, whose liability is limited to the amounts that they can contribute of a predetermined sum in the event of the company being wound up, normally £1.
Not for Profit Company Incorporation £50 + VAT
© 2008 Smart Company Formations