Charitable companies formations with Coddan: if you want to open a charitable company, you must first be aware of the legal requirements in forming one. That's where Coddan, with our many years of expertise, can help guide you through the process. Because charities by their nature are in operation for the benefit of the public and not a group of people, the way a for-profit business is, charities pay lower business rates and get tax breaks. However, there is a limit to what charities can do.
Trustees cannot benefit personally from a charity's work and income and the charity must operate in accordance with charity law, which also means the public must be informed about what it is they do. In addition, a charity's trustees can only receive payment in certain situations and only then with the approval of the Charity Commission. The trustees are normally volunteers who are not paid.
No one connected with the charity is permitted to benefit from it - for example, a trustee family member or company gaining work from the charity. Charities cannot engage in non-charitable work; it must all be charitable. And they cannot be political, as in taking part in campaigns for political change or protesting against the government of any of its policies.
As with businesses, charities must also file reports about their finances.
Registering a charity company using Coddan's services is easy. First, we will establish a charitable company as a company limited by guarantee using a specific memorandum and articles approved by the Charity Commission, which is the charities regulator in England and Wales, and Companies House.
If the name that you have chosen has the word "charity" or "charitable" in it, permission to use it must be sought from the Charity Commission. We will try to get that approval for you, before proceeding to your charity company registration. Companies House requires proof that the Charity Commission approves of such a name before they issue a certificate of incorporation.
When naming your charity, if you don't want to use the abbreviation of limited (LTD) at the end of the name, because it might give negative connotations of being too business oriented, we can legally omit the abbreviation and you get to use the exact name that you want.