Differences and similarities between a company limited by guarantee and a Non-Governmental organisation

Differences and similarities between a company limited by guarantee and a Non-Governmental organisation

July 23, 2019

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.

SIMILARITIES

  • 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.

DIFFERENCES

  • 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.

Team 618bees

For Further inquiries;

www.618bees.com

info.618bees.com

012803791

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.

 

 

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

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.
  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.
  • Why is mutual assent important in a contract?

    This is one of the key elements of a contract because is shows the meeting of the minds of both parties
  • What is SON?

    SON stands for ‘Standards Organization of Nigeria’
  • Can I use the data collected legally for one purpose for another purpose?

    No, you can’t use the data collected for one purpose for a different purpose.
  • What is the importance of registering a patent?

    The main reason to register a patent is to ensure that the inventor is able to exclusively commercially exploit an invention. The rights to a patent are vested in the “Statutory Inventor” i.e. the first person to file and register the patent.
  • What are the product categories available when registering with NAFDAC?

    The product categories include: Food, Cosmetics, Drug, Medical Device, Agro-Chemicals & Pesticide, Veterinary Products, Vaccines & Biologicals, Herbal and Nutraceuticals and Water
  • What’s the difference between a business name and an LLC?

    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 
  • 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 and 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.
All FAQs
Call Us Now on +234 901 719 0079 Chat on WhatsApp