When you start a business, the first thing you might consider is the structure of your business.
The answer is quite simple if you are looking to make profits, you set up a private limited company, ensure your liabilities are separate from that of the business, and move forward.
But wait ……..
What if you are a social entrepreneur and thinking of setting up a social impact startup or social enterprise, then does this make sense anymore?
As a social entrepreneur, your company’s mission is to create positive social, environmental, or community impact and the primary goal may not be to generate profits for distribution to shareholders. You might also possibly look at fundraising or donations as part of your business model.
You might then look to incorporate as a Company Limited by Guarantee.
But What exactly is the difference between these two company structures?
We have prepared a comparison setting out the main differences in these two company structures and some key considerations so that you are more informed.
download it through the link below.
