| Exemption from use of 'limited' in name | The general rule is that every company limited by shares or by guarantee (not being a public company) must have 'limited' (or the Welsh equivalent 'cyfyngedig') as the last word of its name - section 25 of the Companies Act 1985. (A company may only use the Welsh word if its memorandum of association states that its registered office is to be situated in 'Wales' as opposed to 'England and Wales' or 'Scotland' - section 25(2)(b) of the Companies Act 1985).
If certain requirements are met however, a company limited by guarantee may apply for and be granted an exemption from using 'limited' (or its Welsh equivalent) in its name. The requirements are as follows:
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(a) | the objects of the company are to be the promotion of commerce, art, science, education, religion, charity or any profession, and anything incidental or conducive to any of those objects; and |
(b) | the company's memorandum or articles of association: |
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(i) | require its profits (if any) or other income to be applied in promoting its objects' | |
(ii) | prohibit the payment of dividends to its members, and | |
(iii) | require all the assets which would otherwise be available to its members generally to be transferred on its winding up either to another body with objects similar to its own or to another body the objects of which are the promotion of charity and anything incidental or conducive thereto (whether or not the body is a member of the company).
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| If you select 'Yes' to this question, UKcorporator will produce a memorandum of association for you which complies with the above requirements. |
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