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This means that the company owners are not liable for any business debt beyond the values of their shares or guarantees.

The financial liability of the shareholder or the owner is limited to the value of their shares or, for a company that is limited by guarantee, their guarantees.Companies limited by guarantee are managed by directors and owned by guarantors rather than shareholders.The guarantors commit to paying a certain amount of money toward company debts if the business ever experiences financial difficulty.If the charity company will have an income in excess of £5,000 then they will need to properly register with the Charity Commission and be fully assessed by them.It can take time to register, but we can help you with guidance where necessary.

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If objects are worded in an obscure or confusing manner, or in a way which mean that the objectives of the company are not exclusively charitable, then the charity commission can refuse registration and the company will not be legally deemed to be a charity.

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