September 25, 2018

There are similarities between a company limited by guarantee and a non- governmental organization, but these similarities do not make them the same. This article intends to highlight the similarities and differences between a company limited by guarantee and a non-governmental organization.


  • The objective of a company limited by guarantee and a non-governmental organization is for a charitable cause and promotion of social agenda or religious group.
  • A company limited by guarantee and a non -governmental organization do not have a profit sharing formula neither do they distribute profit to the members of the company.
  • Upon winding up of both there is a requirement of transfer of object of the company to a similar organization or company with similar object.
  • Upon the winding up of both, assets of the organization or company are not distributed to members.
  • Both company limited by guarantee and non-governmental organisations are exempted from tax.


  • A company limited by guarantee is allowed to venture into business or profit making agenda but cannot share the profit among members; but Incorporated Trustees are not allowed to venture into profit making business.
  • They have different registration requirements by the Corporate Affairs Commission (CAC). For instance, a company limited by guarantee is required to seek and get the consent of the Attorney general of the federation. Whereas, an incorporated trustee does not need such consent.
  • The registration of an incorporated trustee requires newspaper publication before incorporation whereas a company limited by guarantee does not have such requirement.


  • Memorandum and Articles of Association are required to register a company limited by guarantee but Incorporated Trustees require Constitution.

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