Procedure for Incorporation of Private Limited Company by Guarantee :-
known as company limited by guarantee.
The procedure for incorporation of a company limited by guarantee is the same as the one required to be followed for getting a public or a private limited company incorporated. However, the following distinctive features in the case of a company limited by guarantee must be noted: -
(i) A Private Limited Company by guarantee mayor may not have a share capital.
(ii) A Private Limited Company by guarantee may be a public company or a private company.
(iv) Sub-section (2) of Section 27 of the Act lays down that the articles of association of a company limited by guarantee shall state the number of members with which the company is to be registered.
(v) Section 37 (1) of the Act prohibits a company limited by guarantee from having any provision in its memorandum or articles or in any resolution purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member.
(vi) Sub-section (2) of section 37 lays down that in the case of a company limited by guarantee, every provision in its memorandum or articles or in any resolution purporting to divide the undertaking of the company into shares or interests shall be treated as a provision for a share capital, notwithstanding that the nominal amount or number of the shares or interests is not specified thereby Private Limited Company Registration.