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Home Limited Companies Choosing a Company Limited by Guarantee or Limited by Shares Determining the Membership Subscription
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Forming a company limited by guarantee or registering a company limited by shares

Determining the membership subscription

 
Set-Up UK Guarantee Company

Determining the membership subscription: determining the board of directors (although not usually called "directors" or "trustees"); their minimum and maximum number; how they are to be elected, nominated and/or appointed; the length of a term of office; and the maximum time they can serve. Considering any issues which will require a 75% vote. Considering the terms upon which the organisation would be wound up and a mechanism to determine to which other charity or charities the surplus assets would be transferred.

Consider an appropriate name. If it is a charity, it may wish to exclude the word "company" or "limited" in its name and to include, for example, the word "trust" or "partnership" (even though it is a company rather than an actual trust or partnership). It is possible to obtain preliminary approval to a name from the Registrar of Companies and essential to do so if the name contains a sensitive word such as "Great Britain", "Scotland", "Scottish". "Institute", "Authority", etc.

Charities can exist in the form of unincorporated associations, trusts or companies limited by guarantee. The choice can be important if you are applying for registration. If a charity wants to trade it can do so by setting up a separate non-charitable body (e.g. a limited company) to conduct the trading, which will pay its profit to the charity, so preserving charitable status. But this is expensive and cumbersome, and will not be allowed to benefit the trustees of the charity in most cases. There are easier ways to trade than this.