A club or an association is basically a company limited by guarantee. The liability of the members of a club or association is limited to an amount, which each member guarantees to contribute to the company’s assets in case the company is wound up. This type of limited company has members but no shares are floated. The members pay a subscription or membership fee; they also normally enjoy equal voting rights in order to elect the board of directors. The profits are not distributed as dividends but they are used up in different activities of the club. It is very easy to form a limited by Guarantee Company. An acceptable name has to be chosen, all necessary forms are required to be filled up and sent to the Companies House along with the relevant fees. Certain documents are required in order to form a limited by Guarantee Company in England and Wales and Scotland and they are:
