A Company Limited by Guarantee without a Share capital are usually used in circumstances that give corporate protection such as charities, trade associations, societies, sports clubs and social clubs. This company type is appropriate for non-profit companies or NGO (non-governmental organization). They can also be used for property management purposes in the servicing and maintenance of residential associations. The company name of a CLG must end in the suffix “Company Limited by Guarantee”. However there are some exemptions, a company can apply for removal of the suffix when its objects are in the promotion of commerce, art, science, education, religion, charity or any other prescribed object.
There are no shareholders or share capital in this type of company. Instead of shareholders, they are required to appoint a member, who guarantee’s to contribute 1 euro to the company in the event of its winding up (subject to the Constitution).
Standard Company Limited By Guarantee (CLG) €395
A standard CLG is required to have 2 directors and one member (this is their version of a shareholder). The directors can also be members.
Charitable Company Limited By Guarantee (CLG) €495
A Charitable CLG is required to have 3 non-related directors and a min of 3 non-related members. The directors can also be members.
Charitable Status can be applied to the Revenue Commissioners on projects which are set up for charitable, scholastic or religious purposes. It should also be noted that Guarantee Companies are required under statutory legislation to file Audited Accounts every year with the Companies Registration Office.
For more information on applying for Charitable Status please view Applications for Charitable Status.
There is also a company limited by guarantee with a share capital, however, these are rarely used.Contact us now for further details