Which Is Better · 5 min read
NGO vs LTD for an Impact Business - Which Structure Is Better?
Running something social? You can register as Incorporated Trustees (NGO) or as a Limited company. The wrong choice can block grants and tax breaks.
If your work is partly social-impact and partly revenue-generating, this is one of the most important early decisions.
Register as an NGO (Incorporated Trustees) if
- You will rely on grants, donations, or international donor funding
- Profit is NOT distributed - all surplus goes back into the cause
- Trustees are willing to be publicly named and newspaper-published
- You can wait 8–14 weeks for incorporation
Register as an LTD (with social mission) if
- You earn revenue from services/products and want to reinvest profits
- You want shareholders, equity, or to be acquired one day
- You want a faster setup (3–7 working days)
- You may apply for impact investing or blended finance
The hybrid model AMG often recommends
Many serious founders register BOTH - an LTD for commercial activity and an NGO for grant-funded programmes - so each side gets the right tax treatment and donor compliance. Speak to an AMG agent before committing.
Both routes need SCUML and TIN afterwards. AMG bundles everything so nothing is missed.