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 agent 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:
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!
Most charitable companies are registering as a company limited by guarantee, bit with the specific memorandum and articles of association. To open a charitable company you need to have appoint two separate trustees (not a single director), and you need to have at least of one member of your charitable organisation or a charitable foundation. Charitable organisations do not have directors, they have trustees, and they do not have shareholders, they have members.