Set Up Company Limited by Guarantee (CLG)

We Help to Setting Up a Company Limited By Guarantee (CLG) in Singapore with Easy. Registering a CLG allows separating the company’s liabilities.Find out now the different how to start your CLG Company with us. 

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About CLG Company

What is Company Limited by Guarantee (CLG)

A Company Limited by Guarantee is a type of company that does not have a share capital or shareholders and is usually formed to manage a charity or not for profit organisation making activities tied to national or public interests, such as for promoting art, charitable causes. A company limited by guarantee as a non-profit organisation has the advantages of incorporating a separate legal entity with limited liability for its members, and is a desirable structure for these reasons.

In Singapore Non profit Organisation is known as Volunteer Welfare Organisation (VWO) who typically registered as a society under the Societies Act, a company limited by guarantee under the Companies Act, or as a Trust (under a trust deed or under the Trustees Act).

Meet our Profesionals Team to get advice for CLGs (Company Limited by Guarantee) Setting Up

Benefit of Setting Up CLG Company

What are the benefits of Setting Up a CLG Company in Singapore?

Greater Standing and Credibility as an Organisation

Stakeholders in a Company Limited by Guarantee do not own shares and are not considered shareholders. Instead, they are members of the company. Members are protected from financial risk and aren’t liable for the company’s debts, barring fraud and non profit status also gives credibility to the organisation, and this can be useful if you’re keen to promote the company’s objectives and status.

Automatic Tax Exemption

The corporate tax rate in Singapore is 17% on chargeable income, All the surplus funds you generate from the company’s members are exempted from corporate income tax. Further benefits also can be availed depending on the type of income the Company Limited by Guarantee receives.

Beneficial for Fundraising

It can be easier to obtain grants. Many funders give grants only to registered non profit, viewing these businesses as more trusted and regulated.

ForBis Accounting

Why you must choose ForBis?

Hassle-free. Clear transparent pricing

ForBis believes in providing client-centric solutions. We charge you ONLY for the work you need us to do. You don’t have to worry about us raising prices when your revenue or profitability grows and we won’t ask you to share the fruits of your labour

A Personal Touch

We believe in the human touch. You don’t have to worry about having to talk to a chatbot or going through “smart/interactive” answer machines. Being able to easily reach out to a HUMAN will SAVE you much frustration and stress.

No Wrong Door Policy

A client success officer is attached to every client so you don’t have to worry who to ask regardless of the nature of your question/concern. We’re also easily reached through emails, company Whatsapp or through the company hotline.

Experienced in Multibusiness

With 7 years under our belt, ForBis is ready to be your trusted partner in providing support and solutions for your business. Our company strives to deliver customised services that will take your business to the next level.

CLG Setting Up Services

What services will be included when using our services?

ForBis CLG Setting Up Plan

  • Standard Constitution (Formerly M&AA)
  • Company Biz Profile
  • Share certificates for incorporated shares allotment
  • Resolution for Company bank account opening
  • Bank introduction for bank account opening services in Singapore
  • First directors’ resolution
  • Email Support

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Most People Ask

Frequently Asked Questions

What is the difference between a Guarantee Company and a Company Limited by Shares?

A Company Limited by Guarantee does not have a share capital or shareholders. Such companies also have a list of predetermined objects, the objects define what the company will do and usually include a clause to restrict the directors from paying out any profits to the trustees, but rather to reinvest any profits in fulfilling the company’s objectives.

Who owns a Company Limited by Guarantee?

If the company’s constitution allows it, minors can be members of a Company Limited by Guarantee. Individuals, and also companies and other legal persons, can be company members.

What is the structure of a Company Limited by Guarantee?

In many ways a Company Limited by Guarantee is operated very similarly to one which is limited by shares. They have many of the same responsibilities, administrative requirements, and regulations to follow. Both are bound by the Companies Acts, both must have a registered office address in the country of incorporation, and both have statutory filing obligations such as submitting annual accounts and confirmation statements.

However, unlike a share company, a Private limited company does not have any shareholders or share capital invested in it instead the company is controlled by members who occupy the role of guarantors. There must be at least one director (charitable organizations will need two) who will typically also be a guarantor.

Is a CLG a Charity?

A CLG does not have to be a charity, but it can apply for charity status as it allows the CLG to obtain full tax exemption on its income.

To apply for charity status, CLGs have to fulfil the criteria set out by the Commissioner of Charities. Charities are allowed to carry on business activities, but the scope of such activities are limited.

Are Companies Limited by Guarantee Public or Private?

CLGs are public companies because CLGs do not have share capital unlike companies limited by shares. Thus, the liability of members of a CLG is limited to the amount which they undertake to contribute to the assets of the company in the event of winding up. This amount will be provided for in the company constitution.

On the other hand, for companies limited by shares, the liability of shareholders is limited to the portion of the company’s share capital that they have taken up.

Are there any requirements for CLG?
  1. Function on a not-for-profit basis
  2. Established only for charitable reasons
  3. Complete activities to fulfill its purposes and benefit the public