Differences between a co-operative society and a company Limited by Guarantee

Differences between a co-operative society and a company Limited by Guarantee

September 19, 2019

A Co-operative society is an association of different individuals coming together to achieve an economic, cultural and social aspiration.  On the other hand, a company limited by guarantee as the name implies, is a company incorporated with the aim of promoting a particular type of objective.

The narrative between these two is while a company limited by guarantee is solely created for the purpose of promoting an objective such as art, culture, science, religion, education, research, charity etc. It is not created with the sole aim carrying out business and although it is permitted to go into commerce, it cannot distribute the profit to its members but rather is obligated to use it for the promotion of its objectives. While a co-operative society does not have such restrictions .For a co-operative, making profit and distributing same among its members is legal. In fact, the economical reason is one of the major reasons while a co-operative society is registered under the Ministry of Commerce and industry

The aim of a co-operative is to meet the need of their members. On the other hand, the aim of a company Limited by guarantee is to promote its objective(s). The structure of a company limited by guarantee is such that the members are liable to the amount they guarantee.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

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  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

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    You can start renewal 6 months to the date of expiry.

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    To do a trademark search you will need the name or/and logo (device) of the trademark to be searched and the Class of the trademark that accurately describes it.

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