How is a company limited by guarantee?

How is a company limited by guarantee?

July 23, 2019

A company limited by guarantee is a company which does not have any shares or shareholders but is owned by guarantors who agree to pay a certain amount of money for company debts and the operation of the company. Where profits are made same does not go back to the guarantors it reverts to the operation of the company.

A company limited by guarantee is most times incorporated by non-profit organisations such as sports clubs, workers’ co-operatives and membership organisations, whose owners wish to have the benefit of limited financial liability instead of an NGO.

A company limited by guarantee is a distinct legal entity from its owners, and is responsible for its own debts and like the limited liability company structure, the personal finances of the company’s guarantors are protected. They will only be responsible for paying company debts up to the amount of their guarantees.

Read up blog post on How to register a company limited by guarantee.

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Lucklyn Audu

Team 618bees

 

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Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • Do I need a Company Secretary?

    A limited liability company (LLC) must have a company secretary.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • Can I process/register multiple products at NAFDAC at the same time?

    Yes, you can process/register multiple products at the same time

  • How many shareholders do I need to start a company?

    A minimum of two (2) shareholders is required to form a company.

  • Why do I need a trademark?

    You need to register your trademark because if you don’t register it, someone else can! It helps identify you as the source ad indicates a consistent level of quality of your products and services. Securing a registered trademark protects your brand, and provides you with tools to prevent someone else from using similar signs and riding off the back of your business.

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