Guarantee Companies are usually used in circumstances whereby it has been decided to give corporate protection to entities such as charities, trade associations or sports clubs. They can also be used for property management purposes in the servicing and maintenance of residential associations.

Charitable Status can be applied to the Revenue Commissioners on projects which are set up for charitable, scholastic or religious purposes. It should also be noted that Guarantee Companies require seven members under statutory legislation to file Audited Accounts every year with the Companies Registration Office.