What Does LBG Mean in Ghana? Company Limited by Guarantee Explained
LBG means Limited by Guarantee: the company type Ghanaian NGOs, foundations and associations register as. Here is how it differs from LTD and how to register one.
LBG stands for "Limited by Guarantee". A company limited by guarantee has members instead of shareholders. Each member promises to contribute a set amount if the company is wound up, and any surplus is used for the company's objects rather than paid out as dividends. In Ghana, LBG is the usual legal form for NGOs, foundations, associations and other non-profit organisations.
LBG compared with LTD
| LBG (limited by guarantee) | LTD (limited by shares) | |
|---|---|---|
| Purpose | Non-profit objects | Making and sharing profits |
| Owners | Members who give a guarantee | Shareholders who buy shares |
| Profits | Reinvested in the objects | Can be paid out as dividends |
| ORC form | Form 3B | Form 3 |
| ORC standard fee | GHS 490 | GHS 585 |
| Name ending | LBG | LTD |
How the LBG name works
A company limited by guarantee ends its name with LBG, for example "Bright Futures Foundation LBG". The full wording "Limited by Guarantee" means the same thing. The rest of the name still has to be distinctive and not mislead the public about what the organisation does.
Registering an LBG
NGO registration, guided JustRegisterIt prepares Form 3B, the constitution and the officer records from your answers, and files the LBG with ORC.
- Agree the organisation's non-profit objects: what it exists to do.
- Choose a name ending in LBG and check that it is available.
- Prepare Form 3B with the subscribers (members), directors, company secretary, auditor and beneficial owners.
- Adopt a constitution that matches the objects and governance you want.
- File with ORC and pay the GHS 490 standard fee.
- After incorporation, file annual returns and check whether your activities need registration with other bodies, such as the Department of Social Welfare for many NGOs.
- Start NGO registration - Start a guided company limited by guarantee registration.
- Register an NGO in Ghana - Steps, documents and costs for a company limited by guarantee.
- NGO and LBG naming rules - Names ORC accepts for guarantee companies.
- What is Form 3? - Company registration forms explained.
- Registration costs in Ghana - Every ORC fee in one table.