Limited by Guarantee Company
This is a company that:
- is not carried on for the profit or gains of its individual members.
- has a constitution which prevents the company from distributing profits or assets for the benefit of particular persons, both while it is operating and on winding up.
- any profits made by the company must be used to carry out the company's purpose (it objects).
A limited by guarantee can apply to have the under Section 150 to have the word "limited" omitted from its name.
Limited By Guarantee Company Requirements:
- 3 Directors (2 of which must ordinarily reside in Australia)
- 1 Secretary (who can be one of the Directors and must ordinarily reside in Australia)
- 1 Member
- Registered Office & Principal Business Office
- A statement of the objects of the company (i.e. the purpose for which the company is being setup).
More information about the taxation aspects of Limited by Guarantee Companies and Non-Profit Organisations is available at the Australian Taxation Office under Non-Profit Organisations.