cryptohunter
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Companies that are limited by shares and companies limited by guarantee are different in how they're set up and how they work.
A company limited by shares is more common. Its like when you own part of the company through shares. Shareholders get money back through dividends when the company makes a profit. The thing is if the company has debts, the shareholders' personal stuff is usually safe.
a company limited by guarantee doesnt have regular shareholders. Instead, it has members who promise to pay a small amount (often just £1) if the company has to close down. This type is often picked by non-profits, charities, or clubs where the main goal is social or charitable, not making money.
A company limited by shares is more common. Its like when you own part of the company through shares. Shareholders get money back through dividends when the company makes a profit. The thing is if the company has debts, the shareholders' personal stuff is usually safe.
a company limited by guarantee doesnt have regular shareholders. Instead, it has members who promise to pay a small amount (often just £1) if the company has to close down. This type is often picked by non-profits, charities, or clubs where the main goal is social or charitable, not making money.