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What is a limited company?

A limited company is a separate legal entity which has the power to own assets in its own name, to borrow and/or lend money, to make contracts and to sue and be sued in its own name.

A company comes into existence as soon as it is incorporated (see 'How do I incorporate a company').

The advantages of being a limited company are that the members of the company have limited liability in the event that the company is liquidated (wound up). A member/shareholder will only be liable for the companies debts (up to the value of the companies assets) and this does not normally extend to the personal assets of the members.  

Unlike a partnership, limited companies are formally established with Memorandum and Articles of Association and are tightly regulated by the Companies (Guernsey) Law, 2008.

Individuals considering setting up a limited company should seek independent legal advice. Consideration should also be given to the obligations of members/directors of limited companies.

General information regarding the establishment of a new company can be obtained from Startup Guernsey (previously known as the Guernsey Enterprise Agency) - see link below.


Document downloads

Company Formation Information

Information regarding Guernsey registered companies

Compliance and Choice of Corporate Vehicle

Types of entity and solvency test information

Company Types and Liability of Members

Limited companies



Relevant links & information

Startup Guernsey