Charitable CLG and Trading Subsidiary Formation in the UK.
Establish Your Charitable Company with Professional CLG and Trading Subsidiary Support.
Establish a Company Limited by Guarantee (CLG) for charitable purposes and explore whether a separate trading subsidiary is appropriate for your organisation's activities and plans.
- Start with the organisation you want to establish, its charitable purposes, intended activities and governance arrangements before deciding whether a separate trading subsidiary may be appropriate.
- A charitable CLG provides a corporate structure for the organisation, while a trading subsidiary is a separate company that may be considered where the organisation's proposed commercial activities and wider arrangements justify it.
- A trading subsidiary is not automatically necessary for every charitable organisation; the appropriate structure depends on the activities, objectives, governance and circumstances involved.
- Consider how the charitable organisation and any proposed trading company would relate to one another, including their intended activities, decision-making arrangements and corporate responsibilities.
- Where a separate company is appropriate, Coddan can provide professional assistance with the relevant company formation and incorporation requirements within the agreed service scope.
- Prepare the proposed company name, director information, membership or ownership arrangements, company objects and other formation details required for the selected corporate structure.
- Coddan's team reviews the relevant formation information before submission and assists with the applicable Companies House incorporation process within the selected service scope.
- Remember that company incorporation and charity registration are separate processes. Incorporating a charitable CLG does not, by itself, establish registered-charity status or determine the organisation's tax treatment.
- The proposed relationship between a charity and a trading subsidiary may require additional consideration of governance, regulatory requirements and tax treatment; obtain appropriate specialist advice where those matters fall outside the agreed formation service.
- Choose the professional support that matches your requirements, whether you need to establish a charitable CLG, form a separate trading company or discuss the appropriate formation route before proceeding.
- Coddan CPM provides professional company formation and corporate administration support as an Authorised Corporate Service Provider (ACSP) and Trust and Corporate Service Provider (TCSP), within the agreed service scope and subject to the independent decisions of the relevant authorities.


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