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Company Limited by Guarantee

 Company Limited By Guarantee in Kenya. What is it?

Company Limited by guarantee  is most often formed by non-profit organizations such as NGO, charitable trust, foundations, sports clubs, workers’ co-operatives and membership organizations, whose owners wish to have the benefit of limited financial liability.
A company limited by guarantee does not have any shares or shareholders (like the more common limited by shares structure) but is owned by guarantors who agree to pay a set amount of money towards company debts.
Furthermore, there will generally be no profits distributed to the guarantors as they will instead be re-invested to help promote the non-profit objectives of the company. If any profits are distributed to the owners, then the company will forfeit its right to apply for a charitable status.

What are the Benefits of Company Limited by Guarantee over other forms of charitable organizations.

A company limited by guarantee is a distinct legal entity from its owners, and is responsible for its own debts.
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.
‘Limited’ status builds trust and confidence amongst clients and sponsors – this type of professional credibility is valuable and can help a company achieve its objectives more effectively.
Can own property in its name
The functions of the company are not monitored/regulated by registration bodies.
Takes 30-45 days to be incorporated.

What are the Requirements for Registration

Requirements for Private Company Limited by Guarantee Incorporation

  1. Proposed names for name search and reservation
  2. Objectives of the Company
  3. Address of the proposed company physical location including LR Number
  4. Photocopy of ID card/passports for the directors/members
  5. Recent colored passport sized photographs of directors
  6. Particulars of directors, personal information, occupation. Postal and physical address and contacts
  7. Pin certificate of directors


One Comment

  1. May 15, 2020 at 10:46 am

    Wonderful information on company limited by guarantee.

    Thank you for taking your time on it.

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