Registration of a Company Limited by Guarantee is regulated by Section 7 of the Companies Act 2015. The company is characterized by liability of its members is limited by the company`s articles, and it does not have a share capital. A number of aspects are required for a smooth and successful process. These aspects include the purpose of the company, its governance structure, its legal obligations, and the registration process itself. Below, we will expound on the aspects further.
The first key aspect to consider is the purpose of the company. You must clearly define the objectives and activities of the company before registering it. A company limited by guarantee is usually formed for non-profit purposes, such as promoting education, culture, sports, or social welfare. Therefore, you need to carefully draft the company’s constitution to reflect its purpose and ensure that it is aligned with the Companies Act, 2015.
Secondly, it’s central to establishing a good organizational structure. Directors compose the governing board; they are responsible for the management of the company’s affairs. The board should be constituted of individuals who have the necessary skills and expertise to guide the company towards its goals. It is also important to have clear rules on the appointment, powers, and duties of the board members to avoid conflicts and ensure accountability.
The third aspect to consider is the legal obligations of the company. As a registered entity, you must comply with various legal requirements, such as tax registration, labour laws, and environmental regulations. Failure to comply with these obligations can lead to fines, penalties, or even the revocation of your company’s registration. Therefore, you need to have a clear understanding of your legal obligations and ensure that you have the resources to fulfill them.
The fourth consideration is the registration procedure. Observing the set registration exercise is important in processing the application within the set timeline. You should ensure that you have all the necessary documents and information before starting the registration. Thereafter, the documents are forwarded to the National Intelligence Service for members vetting within the set registration standards. The registration process takes approximately 6-8 months.
In conclusion, registration requires careful consideration of company purpose, governance structure, and legal obligations for a smooth process.
To consult the right team and ensure a successful registration, contact us at info@bellmacconsulting.com