FAQs
Q: Can one person incorporate a company limited by guarantee?
A: No. Minimum 2 members/guarantors are required by law.
Q: What's the minimum guarantee amount?
A: There's no statutory minimum, but typically ₦100,000-₦1,000,000 per member.
Q: Can a company limited by guarantee earn profit?
A: Yes, but profits must be reinvested in the organization's mission, not distributed to members.
Q: How long is a company limited by guarantee registration valid?
A: Perpetually, as long as annual compliance and returns are filed.
Q: Can I convert from guarantee to shares later?
A: Yes, through a formal conversion process with CAC approval.