Proceeding With Charity Companies Startup

Proceeding with charitable companies startup: most companies limited by guarantee are not-for-profit companies, which means that they retain their profits within the company or use them for some other purpose. If you wish to start running a company limited by guarantee, you will need to register with Companies House.

There are several ways in which you can start your charitable company. You can do it quickly and easily through Coddan or you can establish the charity association yourself through Companies House. Starting up yourself is the cheapest option. However, it involves completing all of the required documentation yourself, which can take considerable time and effort. Setting up through a company formation expert will enable you to hand the paperwork over to an expert, who will fill in and file the required documentation on your behalf.

Charity company officers: before you are able to establish your charitable company limited by guarantee, you will need to appoint at least two trustees and one member, who must agree to the publishing of his (their) name and address in your company's articles of association. A trustee of a charitable company limited by guarantee can also act as a member, you need to have only two persons to open a charitable company limited by guarantee.

Objectives and liabilities: as your charity organisation will have no share capital or shareholders, your members must agree to pay a certain amount of money in the event of dissolution. You must also provide an object clause, which details your charity's activities, and a declaration, which restricts your member(s) from paying out profits and urges them to reinvest them into fulfilling your company's objectives. Usually we forming charitable companies limited by guarantee where members agree to pay £1.00 or £10.00 as their guarantee.

Documentation required to establish a charitable company limited by guarantee

When setting up of a charitable entity with Companies House, you will need to provide the following documentation:

• A memorandum of association, in which you must state your company's names, address, objectives and liabilities
• Articles of association, in which you must describe the way in which you will run your company
• Statement of the first trustees, secretary (if any) and registered office address, in which you must provide details of your company's registered office address, and its trustees and their addresses
• Declaration of compliance with the requirements of the Companies Act, in which you must show that your company meets all the legal requirements

If you establish your charitable company limited by guarantee with Coddan, you will still be submitting these forms. However, you will not need to source, complete and send off these forms, as we will do this on your behalf. To benefit from our fast and efficient charitable company limited by guarantee start-up service, contact a member of our team today!