Setting Up Social Enterprise

Summary

Setting up a social enterprise in nigeria can be done through various legal forms such as company limited by guarantee, ngo, or incorporated trustees. Each has specific requirements and benefits. A company limited by guarantee is non-profit, limits members liability, and lacks share capital. Profits must be reinvested in the companys objectives. Consulting a local legal expert can help determine the best fit for your goals.

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What are the legal implications of using company limited by guarantee?
Using a Company Limited by Guarantee (CLG) in Nigeria has several legal implications:
- Non-Profit Nature: CLGs cannot distribute profits to members; profits must be reinvested in the company’s objectives.
- Members' Liability: Members guarantee a fixed amount to cover the company's debts if it winds up, limiting personal liability.
- No Share Capital: CLGs do not have share capital.
Do you have specific concerns or questions about setting up a CLG?