Guarantee Company (GC)

Companies limited by guarantee are private limited companies where the liability of the members is limited. The limitation of liability takes the form of a member guaranteeing to pay a nominal amount, typically US$100 or less. In addition, a guarantee company provides a clear legal identity and has the ability to own property in its own name.

A guarantee company is often referred to as a "not-for-profit" organization, meaning that its profits are not distributed to its members but are retained to be used for the purposes of the guarantee company. As such, it is ideally suited to many charitable and community initiatives (such as private clubs and associations) where its purpose and assets remain in the charitable or community domain. However, they can also be used for of non-charitable activities such as clubs, societies, and trade associations.