What Does “Non-Profit” Mean in the UK?

“Non-profit” describes an organisation's purpose or operating model. It does not, by itself, identify a particular legal structure registered at Companies House.

Non-Profit, Not-for-Profit and Similar Terms

In the UK, terms such as non-profit, not-for-profit, NPO, NGO and community organisation are commonly used to describe organisations whose activities are intended to serve a purpose rather than operate primarily for private shareholder profit.

These terms are useful for describing an organisation, but they are not themselves specific Companies House company types. The legal structure you choose needs to reflect how the organisation will operate, who will participate, how decisions will be made and what legal arrangements are required.

The Important Distinction

“Non-profit” tells you something about the organisation's purpose. It does not tell you which legal structure should be used.

A non-profit organisation might operate through a Company Limited by Guarantee, a Company Limited by Shares, a Community Interest Company, a Charitable Incorporated Organisation, a co-operative or another appropriate structure. The right choice depends on the organisation's purpose, membership, governance, activities and legal requirements.

Before choosing a formation package, it is worth identifying what you are actually trying to establish.

What Are You Trying to Establish?

Before choosing a company structure, it helps to identify what your organisation is actually intended to do. Your purpose, members, activities and governance can all affect which legal structure is appropriate.

You do not need to decide everything at this stage. The questions below are intended to help you recognise the situation that most closely resembles your plans. If you are unsure, you can continue to the CLG guidance or speak with Coddan before choosing a formation solution.

Where Does a Company Limited by Guarantee Fit?

A Company Limited by Guarantee (CLG) can be appropriate where an organisation needs a private company structure without share capital and with members who undertake a guarantee rather than holding shares.

Whether a CLG is appropriate depends on the organisation's purpose, membership, governance and activities. The next section explains the CLG structure in more detail so that you can make a more informed decision.

Recognise your situation? Continue to understand whether a Company Limited by Guarantee could be suitable for your organisation.

Private Company Limited by Guarantee

Could a Company Limited by Guarantee be appropriate for your organisation?

What Is a Company Limited by Guarantee?

A Private Company Limited by Guarantee (CLG) is a type of private limited company that does not have share capital. Instead of shareholders, it has members, often referred to as guarantors, who agree to contribute an amount specified in the company's constitution if the company is wound up.

This structure can be suitable for organisations where membership, governance and a defined organisational purpose are more important than share ownership and dividend distribution. A CLG is nevertheless a company with its own legal identity and statutory responsibilities.

What Does “Limited by Guarantee” Mean?

The word “guarantee” refers to the commitment made by each member rather than to a shareholder investment. The member agrees to contribute a stated amount if the company is wound up.

The guarantee is therefore different from owning shares in a company. It does not mean that members automatically own the company's assets or are required to fund its ordinary activities simply because they are guarantors.

A CLG Is Not Automatically a Charity

A Company Limited by Guarantee can be used by organisations that have charitable purposes, but incorporating a CLG does not by itself give the organisation charitable status.

If your organisation intends to operate as a charity, charitable status and any required registration with the relevant Charity Commission should be considered separately from the Companies House incorporation process.

Could a CLG Be Appropriate for Your Organisation?

A CLG may be worth considering where your organisation needs a formal private company structure, does not require conventional share ownership and expects its governance to be based around members, directors and an agreed organisational purpose.

However, the appropriate structure depends on your particular circumstances. Your purpose, membership arrangements, activities, governance model and any intended charitable or social-enterprise status should be considered before incorporation.

Not every non-profit organisation needs a CLG. Next, compare the CLG with other UK structures and identify which features matter for your organisation.

Is a CLG the Right Structure for Your Organisation?

Purpose, membership, governance and activities can all influence whether a Company Limited by Guarantee is appropriate for your organisation.

There is no single “non-profit company” structure that is right for every organisation. A CLG may be suitable where the organisation needs a formal private company without share capital, but the decision should be based on how the organisation is intended to operate rather than simply on the fact that it is described as non-profit.

Consider the following questions before deciding whether a CLG is the appropriate route.

When a CLG May Be Worth Considering

A CLG may be worth considering where your organisation needs a formal corporate identity, does not require share ownership, has members or guarantors and needs a defined governance framework around its activities and purpose.

It can be used in a variety of contexts, including membership organisations, community organisations and other non-profit structures. However, the fact that an organisation is described as “non-profit” does not, by itself, make a CLG the correct choice.

The Structure Should Follow the Organisation

The objective is not to make your organisation fit a CLG. It is to determine whether the CLG structure fits the organisation you are actually planning to establish.

If your purpose, membership, governance and activities point towards a different structure, it is better to identify that before incorporation. The next section provides a concise comparison of the main UK non-profit and social-enterprise structures.

Still comparing your options? See how a CLG differs from other structures used by non-profit and social-enterprise organisations.

CLG vs Other UK Non-Profit and Social-Enterprise Structures

Understanding the Main Alternatives

A Company Limited by Guarantee is an important UK structure for organisations that need a company without share capital, but it is not the only structure available to non-profit, charitable, community or social-enterprise organisations.

The right choice depends on factors such as your purpose, membership, governance, activities, ownership model, charitable status and whether you need an incorporated legal entity.

The Key Question Is Not “Which Structure Is Best?”

The better question is which structure fits the organisation you are actually establishing.

A CLG can provide a formal corporate structure without share capital. A CIC introduces a specific community-interest framework. A CIO provides an incorporated charity structure. An unincorporated association may be appropriate where incorporation is not required. A company limited by shares may be relevant where share ownership or investment is part of the intended model.

When Should You Explore the CLG Route Further?

A Comparison Is a Starting Point, Not a Legal Structure Recommendation

The summary above is intended to help you understand the main differences. Your proposed purpose, activities, membership, governance, charitable status and funding model may require more detailed consideration before incorporation.

Think a Company Limited by Guarantee may fit your organisation? Continue by understanding the difference between CLG incorporation and charitable status.

Four CLG Formation Solutions

Choose the level of professional infrastructure and continuing support that matches your organisation. The packages differ by the services you choose — not simply by the number of directors, members or guarantors involved.

Transparent Pricing: Companies House Fee + Coddan Service

Each package price below includes the current £100 Companies House incorporation fee. The remaining amount represents Coddan's professional formation and/or support service. Prices are shown exclusive of VAT.

The £100 Companies House incorporation fee is a statutory filing fee and is not a Coddan service charge. Other Companies House filing fees, including the applicable Confirmation Statement fee after incorporation, are separate where relevant.

Companies House Identity Verification

Identity verification is a legal requirement for relevant individuals involved in UK companies. The formation process includes guidance on the applicable Companies House verification requirements and the use of the Companies House Personal Code.

Where you require professional identity verification, Coddan can provide ACSP identity-verification services as a separate service. ACSP verification is therefore not presented as automatically included in the four formation-package prices above.

The Packages Are a Starting Point — Not a Limit

You can select the package that most closely matches your requirements and add appropriate services where needed. You do not have to move to a larger package simply because you require one additional service.

Depending on your circumstances, available add-ons may include additional identity-verification support, company secretarial services, document notarisation or apostille, printed corporate documents, a company seal or stamp, and a guaranteed same-day formation service.

What Happens After You Choose?

Not Sure Which CLG Formation Solution to Choose?

You do not have to make the decision alone. Contact Coddan before ordering if you would like to discuss your proposed CLG, formation requirements or the appropriate level of support.

We respond to emails during a business day and aim to respond within a maximum of 24 hours. You can call our office and speak with our team, or request a video call without further obligation.

Ready to Establish Your UK CLG?

Choose the formation solution that matches your organisation, complete the secure online order form and let Coddan take your application through professional review and Companies House submission.

How CLG Formation & Identity Verification Connect

Identity verification is now an important part of the Companies House incorporation journey for relevant individuals. Understanding when verification is required, which route is available and how the resulting Personal Code connects with the company role can help you prepare your CLG formation correctly.

Two Identity-Verification Routes May Be Available

Important: Identity-verification requirements depend on the individual and company role involved. The four formation packages include guidance on applicable verification requirements; professional ACSP identity verification is available as a separate service where required.

Non-Profit Does Not Automatically Mean Charity

CLG formation and charitable status are separate considerations. Understanding the distinction can help you choose the appropriate route for your organisation.

A Company Limited by Guarantee Is Not Automatically a Charity

A Company Limited by Guarantee (CLG) is a legal company structure. It can be used by organisations with charitable purposes, but incorporating the company at Companies House does not by itself give the organisation charitable status.

An organisation can therefore be a CLG without being a registered charity. Conversely, an organisation that intends to operate as a charity needs to consider whether its purposes satisfy the legal requirements for charitable status and which charitable structure is appropriate.

If Your Organisation Is Intended to Be a Charity

The organisation's proposed purposes and activities need to be considered against the requirements for charitable status. This is a different question from simply asking whether the organisation should be incorporated as a CLG.

The appropriate charitable structure may depend on the organisation's circumstances. A charitable organisation may, for example, operate as a charitable company limited by guarantee or as a Charitable Incorporated Organisation (CIO), among other possibilities.

Three Situations That Should Not Be Confused

Choose the Structure Before You Choose the Formation Service

If you know that your organisation needs charitable status, it is important to consider the charitable framework and appropriate structure before ordering a standard CLG formation. If you simply need a private company without share capital for a non-profit, membership or community purpose, a CLG may be an appropriate route without necessarily requiring charitable registration.

Planning to establish a charity? Explore the specialist charitable CLG route before proceeding with incorporation.

Who Can Establish a UK CLG?

A UK Company Limited by Guarantee can be established by people and organisations in a range of circumstances, including founders who live outside the UK.

You do not necessarily need to be a UK resident to establish a UK CLG. The important question is whether the proposed directors, members or guarantors and the organisation itself can satisfy the applicable Companies House requirements.

The formation route can therefore be relevant to both UK-based organisations and overseas founders who want to establish a UK company for a non-profit, membership, community or other appropriate purpose.

Overseas Participation and Identity Verification

UK and overseas participants may have different practical requirements when completing the applicable Companies House identity-verification process. This can include the identity documents available to the individual and the route used to complete verification.

Where direct Companies House verification is not suitable or an alternative authorised route is required, an Authorised Corporate Service Provider (ACSP) may be able to provide the applicable verification service.

A UK Registered Office Is Still Part of the Formation Consideration

Being an overseas founder does not remove the company's requirement to have an appropriate registered office in the relevant UK jurisdiction. The registered office is the company's official address for Companies House purposes and receives official company correspondence.

A director's residential address and director service address are separate considerations and should not be confused with the company's registered office.

When Overseas Documents Need Additional Attention

Depending on the formation circumstances and the documents involved, an overseas founder or corporate member may need document certification, notarisation, apostille or other legalisation for a purpose outside the basic Companies House incorporation process. These are separate services and should be considered only where the relevant organisation, institution or authority requires them.

Establishing a UK CLG From Outside the UK?

Overseas founders should consider the formation requirements together rather than treating UK incorporation as simply a Companies House filing. Identity verification, registered office arrangements, corporate membership, document requirements and the intended governance of the CLG may all need to be considered.

Where your circumstances are more complex, the specialist international CLG route provides a more detailed starting point.

UK or overseas founder? The next step is understanding how the CLG formation process moves from planning to Companies House incorporation.

How Is a UK CLG Formed?

From Organisation Planning to Companies House Incorporation

Forming a Company Limited by Guarantee involves more than submitting a company name to Companies House. Before incorporation, the organisation's purpose, governance, members, directors, addresses and other company information need to be considered and prepared.

The exact requirements depend on the proposed organisation and its circumstances, but the formation journey can generally be understood as a sequence of decisions followed by the Companies House incorporation process.

Professional Formation Is More Than Completing a Form

The quality of the information submitted matters. Before a CLG incorporation is filed, the proposed company information should be checked for completeness and consistency, including the organisation's purpose, directors, members, addresses and applicable identity-verification requirements.

Where a professional formation provider is instructed, this can provide an additional layer of practical review before the information is submitted to Companies House. It does not replace the client's responsibility to provide accurate information or Companies House' statutory decision-making.

Identity Verification Is Now Part of the Formation Journey

Companies House states that identity verification is a legal requirement and that, when registering a new company, the Companies House personal code for each director is required as part of the registration filing. Verification can be completed through Companies House or through an Authorised Corporate Service Provider (ACSP).

This means that identity verification should be considered before the incorporation filing is submitted, rather than treated as an unrelated administrative task after formation.

The Exact Process Can Vary

Not every CLG has the same formation circumstances. Overseas directors, corporate members, specialist constitutional requirements, charitable purposes or additional document requirements can introduce further considerations. A straightforward CLG and a more complex international or specialist CLG should therefore not automatically be treated as identical formation projects.

Ready to understand the identity-verification part of the process? The next section explains the routes available for CLG directors and other relevant individuals.

CLG Identity Verification

Identity Verification for Directors and Relevant Individuals

Identity verification is now part of the Companies House regulatory framework. If you are establishing a UK CLG, the identity-verification requirements applicable to the proposed directors and other relevant individuals should be considered before the incorporation filing is submitted.

Companies House states that identity verification is intended to improve the register's accuracy and reliability and help prevent companies from being used for illegal purposes. The requirement applies across the company lifecycle, not simply when a company is first incorporated.

Two Main Ways to Verify Your Identity

What If Your CLG Has a Non-UK Director?

Being resident outside the UK does not, by itself, prevent an individual from becoming a director of a UK company. However, overseas founders may need to pay particular attention to the identity documents and verification route available to them.

Companies House states that identity verification through an ACSP can be completed from any country. An ACSP may require documents from the approved evidence list and may charge a fee for its service.

Identity Documents and Verification Evidence

The evidence required depends on the verification route. For direct Companies House verification, GOV.UK One Login determines the appropriate verification method based on the individual's circumstances and available identity document. Companies House currently lists documents such as biometric passports from any country and certain UK-issued photo identification among the documents that may be used for direct verification.

Where an ACSP is used, the individual provides the evidence requested by that authorised provider. The provider must complete identity checks to the Companies House standard and retain the relevant records.

Your Companies House Personal Code

After successful verification, the individual receives a unique Companies House personal code. The code belongs to the individual, not to the company, and can be used to connect the verified identity with relevant company roles.

What Happens When an ACSP Verifies You?

The ACSP completes the identity checks and tells Companies House that the individual's identity has been verified. Companies House then sends the individual their personal code. The verification statement associated with the process identifies the individual, the ACSP and the relevant AML supervisory information.

This is why choosing an ACSP is not simply about finding a company formation provider. The provider must actually be registered as an ACSP and meet the applicable Companies House and AML requirements.

Identity Verification Is Part of Corporate Compliance

Identity verification should not be treated simply as another document-upload step. It connects an individual's verified identity with their role on the Companies House register and forms part of the wider regulatory framework introduced under the Economic Crime and Corporate Transparency reforms.

For a new CLG, considering verification early can help avoid delays or incomplete formation information later in the incorporation process.

Professional Support for CLG Identity Verification

Coddan operates as an Authorised Corporate Service Provider (ACSP) and can provide identity-verification support for individuals who require the ACSP route, subject to the applicable verification requirements and acceptance of the required evidence.

This can be particularly useful for overseas directors, individuals who prefer professional assistance, or founders who want their identity verification considered alongside their wider CLG formation process.

Need more detail about CLG identity verification? Explore the dedicated verification and formation route for directors and relevant individuals.

Identity is only one part of the formation process. The next consideration is where your company's official address — and your directors' public service addresses — will be located.

Registered Office and Director Service Addresses

Understanding Your Company's Public Addresses

A UK CLG needs an appropriate registered office, but the company's registered office is not the same thing as a director's residential address or a director's service address. Understanding these different addresses is particularly important because information connected with a company and its directors may appear on the public Companies House register.

If you are establishing a CLG from overseas, operating from home or simply want to separate personal and corporate correspondence, the address arrangements should be considered before incorporation rather than treated as an afterthought.

The Three Addresses at a Glance

Why Do These Addresses Matter?

Companies House is a public register. The company's registered office and a director's service address are therefore not simply internal contact details. They form part of the information available through the public corporate record.

For founders operating from home, overseas directors or organisations that want a professional corporate presence, selecting appropriate address arrangements can therefore be an important practical and privacy consideration.

Particularly Important for Overseas Founders

If you are establishing a UK CLG from outside the UK, you may not have an appropriate UK address available for the company. A professional registered-office service can provide an address that is suitable for the company's statutory requirements, subject to the provider's terms and the applicable rules.

Directors may also choose an appropriate service address where this is available and suitable. However, the use of an address service does not eliminate the director's underlying legal obligations or the requirement to provide accurate information to Companies House.

What Happens to Company Correspondence?

If you use a professional registered-office or service-address provider, the provider may receive company or director correspondence on your behalf. The exact mail-handling service depends on the address package selected.

Use Only an Appropriate Address

A registered office or service address should not simply be selected because it appears on a website. The address needs to be appropriate for the relevant purpose and used in accordance with the applicable service terms and Companies House requirements. Using an address without proper authorisation can create practical and compliance problems for the company or director.

Choosing the Right Address Arrangement

Your address requirements depend on your circumstances. Some CLGs may only need a suitable registered office, while others may also benefit from a separate director service address and professional correspondence handling.

Coddan's CLG formation solutions can combine incorporation with registered-office and director service-address options where appropriate, allowing you to select the level of address support that matches your organisation rather than purchasing services you do not need.

Your addresses are part of the public corporate record. The next section explains what information becomes public at Companies House and how the wider ECCTA framework affects company information.

Why Your Registered Office Address Matters

A registered office is more than an address displayed on the Companies House register. It is the company's official address for statutory correspondence and an important part of its corporate infrastructure.

Every UK company must have an appropriate registered office address in the relevant part of the UK. Companies House describes this as an address where documents delivered to the company should be expected to come to the attention of someone acting on the company's behalf and where delivery can be recorded by an acknowledgement.

The registered office is therefore part of the company's legal and administrative infrastructure. It is different from the place where the organisation actually conducts its activities, and it should not be confused with a director's usual residential address or service address.

The Registered Office Is a Key Channel for Official Correspondence

Important company correspondence can be directed to the registered office. This makes reliable receipt and monitoring of correspondence an important part of maintaining the company's administrative arrangements.

Your Registered Office Is Public Information

The registered office address appears on the Companies House public register. It can therefore be viewed by members of the public, organisations, suppliers and other parties searching the company's record. {index=3}

This is particularly relevant for founders and directors who do not want their home address used as the company's registered office. Companies House expressly recognises the use of an appropriate third-party address for those who want to keep a home address away from the public company register.

It Must Be an Appropriate Address — Not Simply a Mailing Address

The rules for registered offices are more specific than simply providing somewhere for mail to be delivered. The address must satisfy Companies House requirements for an appropriate address.

• Documents delivered to the address should be expected to come to the attention of someone acting on behalf of the company.
• Delivery of documents must be capable of being recorded by obtaining an acknowledgement of delivery.
• The address must be in the same part of the UK in which the company is registered.
• A Royal Mail PO Box cannot be used as a registered office address.
• If using a third-party provider, the company must have permission to use the address and the service must meet the appropriate-address requirements.

Companies House states that a company must maintain an appropriate registered office address at all times. An inappropriate address can result in action by the Registrar and, if the company fails to provide a suitable replacement, potential strike-off proceedings.

Your Home Address Does Not Have to Be Your Company's Public Address

A director must provide Companies House with a usual residential address, but that address is kept on the private register rather than being displayed publicly in the ordinary course. A separate service address is used for public correspondence.

If the company's registered office or a director's service address is a home address, however, that address can appear on the public register. Choosing suitable professional address arrangements before incorporation can therefore be an important privacy and administrative decision.

Why Monitoring the Address Matters

The main risk is not simply having an address listed on the register. It is having an address that is inappropriate, unauthorised or not properly monitored for important correspondence.

Companies House has powers to act where a registered office is not appropriate. Companies should therefore treat the registered office as an active part of their corporate administration rather than as a formality completed during incorporation.

When a Professional Registered Office Service Makes Sense

A professional registered office service can be useful where the organisation does not have an appropriate UK address, where the founders want to keep a home address away from the public register, or where they want company correspondence managed through a dedicated professional address.

Important: A registered office service is not mandatory if your organisation already has an appropriate address. It is a practical service option where the company's circumstances make professional address infrastructure useful.

Registered Office vs Director Service Address

These addresses perform different functions and should not be treated as interchangeable simply because the same professional address may sometimes be used for both.

The Practical Question for Your CLG

Before incorporation, ask three questions: Do we already have an appropriate UK registered office? Do we want our company's public address to be a home or professional address? How will important company correspondence be received, monitored and made available to the directors? Your answers can determine whether you need only CLG formation or whether a professional registered office and director service address would be useful.

Your registered office is part of your CLG's corporate infrastructure — choose it with the same care as the company structure itself.

Companies House, Public Records and ECCTA

What Becomes Public About a CLG?

Incorporating a UK CLG means entering the company into the Companies House public register. The register is available worldwide and contains information that companies are legally required to provide and keep up to date.

This transparency is an important part of the UK company framework. It also means that founders and directors should understand which information becomes public, which information remains private and how the Economic Crime and Corporate Transparency Act (ECCTA) has strengthened the Registrar's role.

What Information Can Become Public?

Public Information vs Private Information

Public-register information is subject to statutory rules and specific protection or disclosure provisions. Companies House states that identity-verification supporting information does not form part of the public register.

The Companies House Register Is Not a Private Database

Companies House makes the public register available for people to search online. The information can therefore be viewed by potential customers, suppliers, professional advisers, financial institutions, regulators and other members of the public.

Companies House also explains that information on the public register can be copied and used by third parties, who are then responsible for complying with applicable data-protection requirements when handling that information.

Companies House Has a Stronger Regulatory Role

The Economic Crime and Corporate Transparency Act 2023 significantly strengthened the role and powers of the Registrar of Companies. Companies House is no longer concerned only with receiving and publishing information; the reforms give the Registrar stronger objectives and powers aimed at improving the accuracy and integrity of the register and preventing unlawful use of companies.

This is one reason why formation information should be prepared carefully and kept accurate after incorporation.

ECCTA and Identity Verification

Identity verification is one of the major reforms associated with the new Companies House framework. Directors and PSCs are required to verify their identities, with direct verification through Companies House and verification through an ACSP providing the main routes.

Successful verification creates a link between the individual and their Companies House identity record. However, the supporting identity evidence used for verification is not itself placed on the public register.

Transparency Also Means Keeping Information Accurate

Directors have responsibility for ensuring that information submitted to Companies House is accurate, complete and filed on time. The obligation does not end when the CLG is incorporated.

Changes to directors, registered office, company details, PSC information and other corporate information may require updates or filings. Keeping the register accurate is therefore part of the company's continuing governance.

Why Professional Formation and Compliance Support Can Help

The modern Companies House environment places greater emphasis on accurate information, identity verification, appropriate addresses and continuing compliance. Professional support can provide an additional layer of practical review and help directors understand what information needs to be prepared, updated or filed.

This does not transfer the directors' legal responsibilities to the formation provider. It provides a structured support layer around those responsibilities.

Understanding the public register is only part of CLG governance. Next, consider how directors, members and guarantors work together after incorporation.

CLG Governance and Corporate Records

What Happens Inside the CLG After Incorporation?

Once Companies House incorporates the CLG, the organisation becomes a separate legal entity — but the work of running the company has only just begun.

The directors need to operate the company within its articles of association, members or guarantors exercise the rights given to them by the company's constitution and the law, and the organisation needs to maintain appropriate corporate records and meet its continuing filing obligations.

The Basic CLG Governance Model

The Directors Run the Company

After incorporation, the directors become responsible for the practical management and governance of the CLG. Their responsibilities include making corporate decisions, maintaining appropriate records and ensuring that information required by Companies House is delivered correctly and on time.

Directors should therefore understand not only what the organisation intends to achieve, but also the legal and constitutional framework within which they must operate.

Members Give the CLG Its Membership Structure

A CLG does not have shareholders in the way a company limited by shares does. Instead, it has members, commonly referred to as guarantors because each member undertakes to contribute a specified amount to the company's assets if the circumstances covered by the guarantee arise.

The Articles Continue to Matter After Incorporation

The company's articles of association are not simply formation paperwork. They provide the constitutional rules that govern the company's internal operation.

Companies House provides model articles for private companies limited by guarantee. Organisations with more specialised membership, governance or operational requirements may need to consider whether their constitutional arrangements are appropriate for their intended structure.

What Records Should a CLG Maintain?

A properly managed CLG needs an organised corporate record. The precise records required depend on the company's circumstances, but the governance framework should normally address areas such as:

What Should Happen After Incorporation?

Many organisations benefit from an initial directors' meeting or written directors' decision after incorporation to establish how the company will operate in practice.

Depending on the organisation, the initial governance process may address matters such as the company's bank account, accounting arrangements, internal responsibilities, records, contracts, policies, membership administration and the practical implementation of the company's objects.

Governance Continues Throughout the Company's Life

Directors remain responsible for keeping the company's information up to date and ensuring that required filings are made. This includes annual accounts, the Confirmation Statement and relevant changes to officers, PSC information, registered office and other company details.

The Confirmation Statement must be filed at least once every year, even where there have been no changes. Companies House also now requires applicable director identity-verification information to be addressed as part of the Confirmation Statement process.

A Non-Profit CLG Still Has Corporate and Accounting Responsibilities

Calling an organisation “non-profit” does not remove its company-law obligations. Every company must keep appropriate accounting records, whether it is trading or not, and directors must ensure that the company's accounts are prepared and filed as required.

The accounting and tax position of a particular CLG depends on its activities and circumstances, so incorporation should not be treated as creating an automatic exemption from Corporation Tax, reporting or other statutory obligations.

What If Something Changes?

CLGs evolve. Directors may be appointed or resign, members may change, the registered office may move, the organisation's activities may develop and the company's governance arrangements may need to adapt.

Some changes require Companies House filings, while others may require internal corporate decisions, updated records or amendments to constitutional documents. The correct response therefore depends on the nature of the change.

Professional Governance Support Can Continue After Formation

Some organisations have the internal expertise to manage their own corporate records and Companies House obligations. Others prefer professional support, particularly where the CLG has multiple directors or members, international participants, specialist objects or a more involved governance structure.

Coddan can provide practical company secretarial and Companies House support where instructed, including assistance with relevant filings, corporate administration and compliance deadline monitoring. Individual filings and specialist legal or tax advice remain separate services where required.

The Key Principle: Incorporation Creates an Ongoing Governance Relationship

A CLG should not be viewed as a company that is formed once and then left alone. Its directors, members, constitution, corporate records, accounts and Companies House information need to remain aligned as the organisation develops.

Not every CLG has the same governance requirements. The next section looks at specialist CLG structures and purposes that may require a more tailored approach.

Specialist CLG Structures and Purposes

Not Every CLG Is Set Up for the Same Purpose

A Company Limited by Guarantee is a flexible company structure, but the fact that two organisations are both CLGs does not mean that they should have identical constitutions, membership arrangements or governance models.

The appropriate formation approach depends on what the organisation is intended to do, who will control it, who will become members, whether it has charitable purposes and how its activities are expected to develop. Some organisations can use a straightforward CLG structure, while others need more carefully considered constitutional or governance arrangements.

A Specialist Purpose Does Not Necessarily Create a Different Companies House Company Type

Terms such as charitable CLG, community CLG or corporate-member CLG describe the organisation's purpose or structure. They do not necessarily represent separate company types available as simple alternatives on the Companies House incorporation form.

The important question is therefore not simply what label the organisation wants to use. It is whether the proposed CLG's constitution, membership, governance and activities are appropriate for what the organisation actually intends to do.

Which CLG Situation Sounds Most Like Yours?

When Should You Consider a More Bespoke Formation?

A straightforward CLG may be appropriate where the organisation's purpose, membership and governance are relatively simple. A more tailored approach may be appropriate where there are multiple membership classes, corporate members, specialist objects, charitable requirements, international participants or a planned relationship with another company.

The more specialised the organisation becomes, the more important it is to establish the intended structure and constitutional requirements before the incorporation application is submitted.

Start With the Organisation — Then Choose the Formation Route

Coddan's approach is to understand the proposed organisation before treating its formation as a standard filing exercise. The intended purpose, directors, members or guarantors, addresses, identity-verification requirements and constitutional arrangements can all affect the appropriate formation solution.

Where the circumstances require more than a straightforward formation, additional professional services or specialist advice may be appropriate. The objective is to establish the right framework first and then determine what formation support is actually required.

Explore the Specialist CLG Routes

Planning a CLG with international participants? The next section explains the additional considerations for establishing a UK CLG from outside the UK.

International and Overseas CLG Formation

Establishing a UK CLG From Outside the UK

You do not necessarily need to live in the UK to establish a UK Company Limited by Guarantee. A UK CLG can be relevant to overseas founders, international organisations, non-UK directors and organisations seeking a UK corporate structure for an appropriate non-profit, community, membership or other purpose.

However, an international formation can involve more practical considerations than a straightforward UK-resident application. Identity verification, registered-office arrangements, director information, corporate membership, documentation and the intended governance of the organisation should be considered together before the incorporation application is submitted.

Overseas Founder ≠ Overseas Company

An overseas individual establishing a new UK CLG is not the same as an overseas company registering an existing business as a UK establishment.

The first route creates a new UK company. The second involves registration of an existing overseas company with Companies House and has a different legal and filing framework. This page focuses on establishing a new UK CLG.

What Should an Overseas Founder Prepare?

Overseas Directors Can Use the Applicable Companies House Verification Routes

Companies House identity verification applies to directors and other relevant individuals within the current regime. The official guidance confirms that identity can be verified directly through Companies House or through an Authorised Corporate Service Provider (ACSP).

Companies House also states that the direct verification service can accept a biometric passport from any country, subject to the requirements of the verification process. An ACSP can provide an alternative professional verification route where appropriate.

The Companies House Personal Code

After successful identity verification, the individual receives a Companies House personal code. For directors, the personal code is used when the relevant company filing requires confirmation of their verified identity.

For an overseas founder, this makes identity verification an important part of the formation planning process rather than something that should be left until after the company has been incorporated.

Your UK CLG Still Needs an Appropriate Registered Office

An overseas founder may not have a UK business premises available for the new CLG. The company must nevertheless have an appropriate registered office in the relevant UK jurisdiction.

Companies House states that a registered office must be a physical UK address in the same country in which the company is registered and must be an appropriate address at which company correspondence can be received and acknowledged.

Director Service Addresses May Be Particularly Useful

Directors must provide both a service address and their usual residential address to Companies House. The service address is the address used for the public register and for correspondence relating to the director.

A professional director service address can therefore be relevant to overseas directors who want an appropriate UK-facing correspondence address, subject to the terms of the selected service. The director's residential address still needs to be provided to Companies House where required.

Overseas Documents May Require Additional Preparation

An overseas founder or corporate member may have documents issued outside the UK. Depending on the purpose for which a document is being used, additional certification, notarisation, apostille, legalisation or certified translation may be required.

These requirements are not automatically part of every CLG incorporation. They depend on the document, jurisdiction and organisation or authority requesting it. They should therefore be identified before ordering additional certification services.

A Practical International CLG Formation Journey

Why Professional Support Can Be Valuable for Overseas Founders

International formation often involves several separate practical questions: Which address should be used? How will identity verification be completed? Are the proposed directors and members correctly documented? Does the organisation require corporate members? Are any overseas documents required in a particular format?

A professional formation provider can help bring these elements together and review the order information before submission. This does not replace legal, tax or regulatory advice where specialist advice is required.

International CLG Formation With Coddan

Coddan supports UK and overseas clients with CLG formation, registered-office arrangements, director service addresses and Companies House identity-verification services through its ACSP framework, subject to the applicable requirements.

Overseas founders can therefore approach the formation as one connected process: understand the structure → prepare the organisation → verify the relevant individuals → establish the UK address arrangements → review the information → submit the incorporation.

International Formation Does Not Automatically Mean a More Complicated Company

An overseas founder may have a straightforward CLG formation. Additional complexity usually comes from the particular circumstances — for example, multiple international participants, corporate members, specialist constitutional requirements, unusual documentation or additional regulatory considerations. The appropriate solution should therefore be based on the actual formation requirements rather than simply on the founder's country of residence.

Once your UK CLG has been incorporated, the responsibilities continue. The next section explains the principal considerations after incorporation, including accounts, tax, Confirmation Statements and ongoing governance support.

After CLG Incorporation

What Happens After Your CLG Is Registered?

Receiving your Certificate of Incorporation confirms that your Company Limited by Guarantee has been registered. It does not, however, mean that all of the organisation's legal, accounting and governance responsibilities have finished.

After incorporation, the directors need to establish how the CLG will operate, maintain its corporate records, understand its tax and accounting obligations and ensure that required information is kept up to date with Companies House.

Your First Priorities After Incorporation

Put Your CLG's Governance Into Operation

Incorporation establishes the legal entity. The directors must then operate that entity in accordance with company law and the company's articles of association.

Depending on the organisation, the initial governance arrangements may include recording directors' decisions, establishing banking and accounting arrangements, confirming responsibilities, maintaining the register of members or guarantors and putting appropriate internal procedures in place.

Keep the Company's Internal Records Organised

A CLG should maintain appropriate corporate records throughout its life. These can include information concerning its directors, members or guarantors, constitutional documents, corporate decisions, accounting records and Companies House filings.

Good record keeping makes later changes, annual filings and governance decisions easier to manage and provides an organised history of the company's corporate activity.

Consider the CLG's Corporation Tax Position

A CLG is a company and should not assume that describing itself as “non-profit” automatically removes its Corporation Tax or reporting obligations.

The tax position depends on the organisation's activities, income, expenditure and circumstances. Where the CLG is carrying on activities that create taxable profits or other reportable obligations, the appropriate HMRC requirements need to be addressed.

Annual Accounts Still Matter for a Non-Profit Company

A non-profit purpose does not by itself remove a company's obligation to keep accounting records and prepare and file accounts as required.

The exact accounting and filing requirements can depend on the company's size, status and circumstances. Directors should establish suitable accounting arrangements from the beginning rather than waiting until the first accounts deadline approaches.

Do Not Forget the Confirmation Statement

Every company must file a Confirmation Statement with Companies House at least once every 12 months, even where there have been no changes to the company's information.

The Confirmation Statement is an opportunity to confirm that the company's registered information remains accurate and to make any required updates. Applicable identity-verification requirements should also be considered as part of the current Companies House filing framework.

Update Companies House When Your CLG Changes

Your CLG may change after incorporation. A director may join or leave, the registered office may change, company details may be amended or the organisation's control or membership arrangements may develop.

If Your CLG Is Intended to Be a Charity, There Is a Separate Regulatory Layer

Incorporating a CLG does not automatically make the organisation a registered charity. Where charitable status is intended, the organisation must consider the separate requirements of the relevant charity regulator and the rules applicable to its charitable purposes and activities.

This is why charitable status should be considered during formation rather than assumed after the company has been incorporated.

Overseas Founders May Need Continuing Support

International formation does not end when the UK CLG receives its certificate. Overseas directors and members may still need to manage UK corporate correspondence, Companies House deadlines, identity-verification requirements and document certification for particular transactions.

Where documents need to be presented to an overseas authority, bank, regulator or other institution, notarisation, apostille or legalisation may sometimes be required. These services depend on the particular document and destination and are not automatically required for every CLG.

Think in Terms of an Ongoing Compliance Cycle

Professional Support After Incorporation

Some CLGs manage their own corporate administration. Others prefer a professional support layer, particularly where the organisation has international directors or members, multiple governance requirements or limited internal company-secretarial resources.

Depending on the service selected, Coddan can provide practical assistance with Companies House administration, corporate correspondence, compliance deadline monitoring and relevant company-secretarial matters.

Keep Corporate Correspondence Within the Compliance Process

Where a Coddan registered office or applicable address service is selected, received company correspondence may be scanned and uploaded to the client's Dedicated Manager Portal, where included in the selected service. This can give directors a convenient digital record of important correspondence and help reduce the risk of official communications being overlooked.

Your Certificate of Incorporation Is the Starting Point

The successful registration of your CLG establishes the company. The next stage is making sure the organisation is properly governed, its records remain accurate, its financial and tax responsibilities are understood and its Companies House obligations are managed throughout the company's life.

Formation is complete — but your support requirements may continue. The next section brings the formation journey back to the practical question: which CLG formation solution is appropriate for your organisation?

Choose Your CLG Formation Solution

What Level of Formation Support Do You Need?

Not every CLG needs the same level of formation support. Some organisations already understand their structure, have their own suitable UK address and simply want the incorporation professionally managed. Others need a registered office, director service address, correspondence handling or continuing company-secretarial support.

The aim is therefore not to select the package with the most features. It is to choose the level of support that matches your organisation's actual circumstances and add further services only where they provide practical value.

Start With What You Need — Then Add Support

A professional CLG formation should be flexible. You should not have to purchase a registered office, director service address or continuing secretarial service simply because those services are available.

At the same time, if your organisation would benefit from professional address infrastructure, correspondence management, identity-verification support or continuing compliance assistance, it can be more efficient to arrange those services alongside the formation.

Which Level Sounds Like Your Situation?

What You Can Expect From the Formation Process

Whichever standard formation solution you choose, Coddan's formation process is designed around professional preparation rather than simply passing customer information directly into a filing form.

• Professional review of the formation information before submission
• Guidance on applicable Companies House identity-verification requirements
• Companies House incorporation submission
• Digital incorporation documents following successful registration
• Access to additional services where your circumstances require them

You Can Add Services Without Moving to a Larger Package

The four solutions provide a convenient starting structure, but they are not intended to create artificial limits around your formation. Where available, additional services can be added according to your requirements.

Need a Faster or More Specific Formation Route?

If your organisation has a particular deadline or requires additional formation services, ask about the available add-ons before placing your order.

Where available, a guaranteed same-day formation service can be added separately. This is an optional expedited service and remains subject to receiving a complete application, successful verification where applicable and Companies House processing requirements.

Choose the Solution That Matches Your Organisation

If your requirements are straightforward, choose the straightforward route. If you need professional addresses or continuing support, select the corresponding level. If your CLG has specialist requirements, contact Coddan before ordering so that the appropriate formation route can be considered.

Four CLG Formation Solutions

Compare the available CLG formation packages and choose the level of address and professional support that matches your organisation.

The four standard CLG formation solutions are designed to give organisations a clear choice without forcing every client into the same level of service.

Every package starts with the formation of your Company Limited by Guarantee. You can then choose the additional address and professional support that matches your circumstances. The £100 Companies House incorporation fee is already included in each package price shown below.

The Packages Are a Starting Point — Not a Limit

You can choose the package that most closely matches your requirements and add appropriate services where needed. You do not have to move to a larger package simply to obtain one additional service.

Depending on your circumstances, available add-ons can include additional identity-verification support, company secretarial services, document notarisation or apostille, printed corporate documents, a company seal or stamp, and an optional guaranteed same-day formation service.

What Happens After You Choose Your Package?

Ready to Establish Your UK CLG?

Choose the formation package that matches your organisation, complete the secure online order form and let Coddan take your application through professional review and Companies House submission.

Not ready to order? Contact our team first to discuss your proposed CLG without further obligation.