This is our most popular package with UK residents, and includes: Submission of applications that details company's executive officers Guarantee company formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Special Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Membership Certificates and company Register
Economy Package
£ 92.00
Renewal fees from £50.00
This is our most popular package with EU residents, and includes: Submission of applications that details company's executive officers Company limited by guarantee formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Annual Return and Annual Account reminder The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Special Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Membership Certificates and company Register
Premier Package
£ 141.95
Renewal fees from £99.95
This is our most popular package with small business, and includes: Submission of applications that details company's executive director Non-profit company registration is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees Applicant appointment of director for company (appointed electronically) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee company secretarial service for 12 months (next year - £49.95) The following documents will be posted to you (these documents will be sent via Royal Mail): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting One (minimum) printed Membership Certificates and Company Register
Deluxe Package
£ 266.95
Renewal fees from £224.95
This is our most popular package with overseas residents, and includes: Non-profit company incorporation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee company secretary service for 12 months (next year - £49.95) Coddan provides a company nominee director service for 1 year (next year - £125.00) The name of the nominee director & secretary will appear as a public record Annual Return and Annual Account reminder The following two hard bound copies of corporate documents will be posted to you (Note: these documents are sent to you through Royal Mail Service, and are to be completed upon arrival): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting One (minimum) printed Membership Certificates and Company Register A pre-signed, undated letter of resignation from the nominee director A General Power of Attorney signed by nominee director An indemnity Letter for General Power of Attorney A nominee service agreement which provides for the indemnification of the nominees
Business Start-Up: Legal Requirements
A guarantee company does not have a share capital. A guarantee company has Members. Members are guarantors instead of Shareholders. A guarantee company can hold property. A guarantee company can borrow money in its own name. Guarantee companies are required to have a secretary. Secretary usually described as the senior administrator. This person may also be a member or director, but need not be. A company must have a minimum of one Member. Members can be corporate bodies or private individuals. Members can be of any nationality. The company is required to have a registered office in the UK.
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Company Formation Home Page>>Companies Limited by Guarantee, Information on Guarantee Companies Registration
FORMING A GUARANTEE COMPANY. COMPANIES LIMITED BY GUARANTEE FORMATION
A non-profit company is an organisation formed as a corporation for purposes other than generating a profit, and in which no part of the organization's income is distributed to its directors or officers. Nonprofits receive the same limited liability protection, as do for-profit companies. This means that directors or trustees, officers, and members are typically not personally responsible for the debts and liabilities of the nonprofits organisation.
Our fee for registering a company limited by guarantee is ONLY £42.00. This type of company is normally incorporated for non-profit making functions. The company has no share capital. Common uses of guarantee companies include clubs, membership organisations, sports associations and charities. When first setting-up a business there are many issues to consider. You need to decide whether or not to incorporate your business, and to choose a structure for your business. There are several types of legal business entities which you can choose to operate as. For more information on these choices, follow the links below. We advise that professional legal and financial advice is obtained before a final choice of business entity is made.
Coddan is a leading service provider in the field of English, Scottish and Irish company formation and company registration. We can help you in starting a business in England, Wales Scotland & Northern Ireland. Over 95% of our companies are incorporated within 4-8 hours. The electronic submission of information enables a fast company start-up satisfying all of the required legal formalities: a director, a secretary, a registered office and shareholders. Our electronic filing software has been approved by Companies House.
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We accept phone orders during normal business hours. Credit cards are the preferred method of payment; we accept VISA, MasterCard and Delta. We can accept payment in UK Pounds Sterling, US Dollars, Euros, Australian Dollars and Canadian Dollars. If you call and receive voicemail, just leave your name and number, as clearly and as possible, and we will call you back as soon as possible.
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STARTING A CHARITY. WHY START A CHARITY?
Many people assume that they must set up a new charity if they want to carry out voluntary work. However, this is not always correct. You should consider the following points to decide whether a new charity is the best way to proceed.
There are more than 180,000 registered charities, working throughout the UK and overseas, which undertake an extremely wide range of work. It is very likely that a charity already exists which is doing the kind of work which you would like to carry out, and there may be one working in your area of the country. We suggest that you think about whether it would be better to offer your services to, or combine with, an existing charity. It is usually less effective to have several organisations trying to carry out the same work in the same place, and it duplicates running costs. If you wish to commemorate someone close to you, it may be possible to create a separate named fund within an existing charity: this may be just as effective as creating a new charity.
Companies limited by guarantee. Are often best suited to companies seeking grants or sponsorship funding, such as Charitable Trusts, Associations, Clubs and Educational Institutions. It is normal to include a non-distribution of profits clause in the Articles of Association, and we will include this unless instructed otherwise. These companies have no share capital and the liability is fixed to a sum guaranteed by its members.
The company limited by guarantee is a special type of company available to non-profit making organisations and charities. Instead of buying shares, anyone who wants to be a member signs a form agreeing to pay a sum of money (for example £1.00, £5.00, £10.00) if the company goes into insolvent liquidation (is bankrupt and has to be dissolved).
This form is called the 'guarantee' and because members' liability is limited to the sum they each guarantee, then the company is said to be 'limited by guarantee'. The guarantee is legally binding while the guarantor remains a member and for one year after he or she ceases to be a member.
Unlike unincorporated associations and trusts, the company has a separate legal existence from its members. This means that, in its own right, it can employ people, own property, enter into contracts and sue or be sued in the courts. The day to day business is run by the directors, who are also defined in law as charity trustees if it is a charitable company. The directors may call themselves a management committee, an executive committee, board of trustees or board of directors.
Charitable companies are bound both by the UK Companies Acts and the UK Charities Act, so they must send their annual accounts and annual returns to Companies House and to the Charity Commission.
We prepare and electronically submit new guarantee company registrations (formations) as soon as we receive your instructions. To form a guarantee company we need certain information as set out in the online order form. Incorporations can be completed within 4-8 hours. A company limited by guarantee is a registered company having the liability of its members limited by the Memorandum to such amounts as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up. Our team of professionals has the experience to set up your guarantee company quickly and efficiently.
Our e-formation service eliminates the need to complete Forms (to appoint the directors and secretary), making the process of forming a company even easier and quicker. With our new online electronic company formation system, we take you through each step of your company incorporation process as quickly and as simply as possible. Our specialist knowledge and vast experience enable us to provide a fast, efficient, and professional service, and one which a great many businesses have been founded and built upon to date.
Once you have completed our online order form and your new guarantee company is in the processing stage of being registered at Companies House you will receive an order acknowledgement from us by email. Documents we send you via email for the electronic E-Quick UK Guarantee Company Formation Package (£42.00) are: Certificate of Incorporation - in PDF format, Memorandum & Articles of Association, First Minutes of Directors meeting, Registers of Members, Directors and Secretaries - in Word format. We have feature-complete solutions with prices designed to put the £££ in your pocket!
Commonly the "Companies Limited by Guarantee" are not setup to make profit for the directors, where as directors / investors of a "Company Limited by Shares" receive a share of company profits. "Company Limited by Shares" is obliged to use the word 'limited' in its name and on its stationery but "Companies Limited by Guarantee" may apply for an exemption. We offer a choice of guarantee company formation packages to suit your practice requirements. We do not cut costs on expertise and quality but still maintain a cost effective pricing structure.
WHAT ARE THE MAIN ADVANTAGES OF BEING A CHARITY?
The main advantages are that charities:
Do not normally have to pay income/corporation tax (in the case of some types of income), capital gains tax, or stamp duty, and gifts to charities are free of inheritance tax; Pay no more than 20% of normal business rates on the buildings which they use and occupy to further their charitable purposes; Can get special VAT treatment in some circumstances; Are often able to raise funds from the public, grant-making trusts and local government more easily than non-charitable bodies; Can formally represent and help to meet the needs of the community.
UK Companies Limited by Guarantee from only £42.00! All Inclusive Company Registration. Each company limited by guarantee package includes all statutory paperwork and is fully compliant with company law. A Certificate of Incorporation, and the Memorandum and Articles of Association of your company will be sent to you upon formation of your company. You can appoint your own directors and secretary BEFORE company incorporation. This is absolutely FREE. Our 4-8 hour online incorporation service enables you to register your company quickly and effortlessly. All government and filing fees are included in the cost of our E-Quick pack. All certificates and documents will be sent directly to you via email immediately following the formation of your company. It will take just 5 minutes to complete the online registration form, then your company could be up and running within 4-8 working hours.
THE E-QUICK PACKAGE CAN BE UPGRADED WITH ANY OF THE FOLLOWING FEATURES:
1. Company Pliers Seal - £20.00. 2. Laminated Hard-copy of the Certificate of Incorporation - £5.95. 3. Laminated Hard-copy of the Certificate of Incorporation, Bound Copies of the Memorandum & Articles, and Combined Company Register - £12.95. 4. Domain Name Registration for two years - £16.00. 5. Provision of a Registered Office Address for 12 months - £50.00. 6. Provision of a Nominee Company Secretary for 12 months - £49.95. 7. Certificate of Good Standing - £35.00. 8. Notarisation & Apostille of Documents.
There are restrictions on what charities can do, both in terms of the types of work they do, and the ways in which they can operate:
A charity must have exclusively charitable purposes. Some organisations may have a range of activities, some of them charitable, some of them not. To become a charity that organisation would have to stop its non-charitable activities. The non-charitable activities can, of course, continue if carried on by a separate non-charitable organisation. Promoters will need to consider carefully if becoming a charity will severely restrict their planned activities. If so, charitable status may not be right for your organization. Trustees are not allowed to receive financial benefits from the charity which they manage unless this is specifically authorised by the governing document of the charity or by Charity Commission.
Financial benefits include salaries, services, or the awarding of business contracts to a trustee's own business from the charity. There are similar problems where the spouse, relative or partner of a trustee receives such benefits. Trustees are, however, entitled to be reimbursed for their reasonable out-of-pocket expenses, for example, train fares to trustee meetings. Trustees need to avoid any situation where charitable and personal interests conflict. UK Charity Law imposes certain financial reporting obligations; these vary with the size of the charity.
WHAT PROBLEMS MIGHT A NEW CHARITY FACE?
Setting up a new charity does not need to be a complicated process. However all organisations need a name, money, people and clearly set out ways of operating. As a minimum you will need to consider the following questions: What will you call your charity? How will you raise the money you will need to run your charity and achieve your aims? Do you need to work alone or is there another group you could join or work with? How will you recruit trustees to administer the charity? What type of governing document will your charity need?
COMPANIES USING THE WORD CHARITY OR CHARITABLE IN THEIR TITLE
If a company wants to use the words "charity", "charitable", "charities", "charity's" or "charities'" in its title or any compound word which includes these, it requires approval from the Secretary of State for Trade and Industry before a Certificate of Incorporation can be issued. Prior to giving approval, Companies House will need to see a letter from Charitable Commission confirming whether or not Charitable Commission have an objection to the use of these words in that organisation's title. If your company wishes to use one of these words in its name you should make a formal request to Charitable Commission and at the same time apply for registration. Charitable Commission will then consider both requests at the same time.
WHICH CHARITIES NEED TO REGISTER?
An organisation must register with us if it fulfils both the requirements for charitable status and the minimum requirements for registration. A body is a charity if it is: set up under the law of England and Wales; and is established for exclusively charitable purposes.
The minimum requirements for registration are that a charity must have one or more of the following:
An income of more than £ 1,000.00 a year; or use or occupation of any land or buildings; or assets which constitute permanent endowment (i.e. where there is a restriction on the expenditure of the capital and (normally) only the income can be spent on the charity's purposes).
WHICH CHARITIES DO NOT NEED TO REGISTER?
Most charities will meet both sets of criteria described above and must register. However, some charities, called exempt charities, cannot register, and are not subject to our supervisory powers. These charities include, among others:
Charities which are also Industrial and Provident Societies, within the meaning of the Industrial and Provident Societies Act 1965. Charities which are also registered societies, within the meaning of the Friendly Societies Act 1974; and most universities.
CHARITABLE PURPOSES
To be a charity an organisation must have purposes which are exclusively charitable. A charity's purposes are its objects or aims which are usually set out in its governing document. The meaning of "charitable purposes" is largely based upon the decisions of the Court and ourselves over the years. Charitable purposes can be grouped under four broad headings. First group: the relief of financial hardship, the advancement of education; and the advancement of religion. Second group: certain other purposes for the benefit of the community. For both groups it is essential that the purposes are also for the public benefit. This means it is for the benefit of the community.
PURPOSES WHICH ARE NOT FOR THE PUBLIC BENEFIT
In general, a purpose is not charitable if it is mainly for the benefit of a named person or specific individuals. It will also not be charitable if the people who will benefit from it are defined by a personal or contractual relationship with each other. For example, if the beneficiaries are related or connected to the person who is setting up the charity, or where they are defined by common employment or by membership of a non-charitable body, for example, members of a professional institute.
An exception to this general rule exists in the case of the relief of financial hardship, where the people to benefit can come from a more restricted group, such as people having the same employer. The extent of public benefit may vary between different types of charity, and although it may not be possible to define exactly what amounts to actual benefit, or what forms a sufficient section of the public, no organisation can be charitable if:
Purposes which are not for the public benefit:
Its purposes are illegal or could be said to further illegal purposes. Or, it is set up for the personal benefit of: its trustees; its employees (other than in the case of relieving need - for example, there would normally be no reason why a firm or business should not operate a benevolent fund for its staff); or other specific individuals. Or, it is created for the specific purpose of carrying out political or propagandist activities. Or, its purposes are against the public interest.
THE RELIEF OF FINANCIAL HARDSHIP
Financial hardship is not defined by a specified amount of money which the beneficiaries have, although the person must be in genuine financial need. Relief of financial hardship also includes, for example, help to people who are suffering from the effects of old age, sickness or from a disability, where, in each case, there is also financial need. The hardship being suffered does not have to be long-term. Temporary hardship caused by job loss or sickness, for example, may qualify for help.
WHAT ARE THE PROSPECTS FOR RAISING FUNDS?
The funding available to the charitable sector is limited. Any new charity may find it more difficult to get funding because local authorities, the public and organisations who give money to charities may prefer to continue to give to charities with a proven track record, rather than a new charity. Charities may relieve hardship in many different ways, for instance:
By giving money to beneficiaries. By providing food, clothing or housing. By giving advisory or other services to those in need; or by providing support for other organisations which give help to people suffering hardship.
THE ADVANCEMENT OF EDUCATION
The advancement of education is not limited to formal education at schools, colleges or universities. It can also include:
Playgroups. Organisations providing work-related training (for example, nursing or engineering); and research institutions. Education in the charitable sense cannot include propagandist or political activities nor the study of subjects which have no educational value. If research is being done, it needs to be carried out in an objective and impartial way and the useful results must be made available, or accessible, to the public.
THE ADVANCEMENT OF RELIGION
In general, no distinction is made between one religion and another. There is a general assumption that the advancement of religion is for the public benefit. For the advancement of religion to be charitable, a religion has to:
Be founded on a belief in a supreme being or beings; and involve expression of that belief through worship. The advancement of religion can include the provision and upkeep of places of worship, paying ministers or priests, and holding services. In some cases the advancement of religion is not charitable. This is where public benefit is clearly lacking. Examples of this include:
Organisations where the benefit is wholly private (such as an entirely enclosed religious order where the activities consist only of private prayer); and where an organisation is set up to promote the beliefs of a particular religion which undermine the accepted foundations of religion and morality, or are otherwise contrary to the public interest.
SOME NON-CHARITABLE PURPOSES WHICH ARE OFTEN PRESUMED TO BE CHARITABLE
The following are examples of organisations or purposes which are often assumed to be charitable, but in fact are not:
Individual sports clubs set up to benefit their members or promote excellence (as distinct from sports facilities open for everyone or specifically provided for special groups of people, such as elderly people, or as a method of promoting healthy recreation). The promotion of political or propagandist purposes, or the promotion of a particular point of view.
Purposes which include arrangements where people running the organisation get significant personal benefit. Raising funds for other charities where the organisers do not have any say over how the funds are spent; or purposes which promote friendship or international friendship, for example, town twinning associations.
APPEALS FOR FUNDS
Fund-raising is not a charitable object in itself: it is simply an activity which can be undertaken to help achieve a charitable purpose. If a charity wants to raise money to carry out work which is not covered by the existing objects of the charity, it can create a new charity with specific purposes.
CHARITY TRUSTEES
The term "charity trustee" is defined in section 97 of the 1993 Act as "the persons having the general control and management of the administration of a charity". This is a legal definition of those people who will run and be responsible for the charity. All charities must have a clearly identifiable body of trustees, but they are often called various names depending upon what type of governing document the charity has.
CONSIDERATIONS FOR POTENTIAL TRUSTEES
The trustees are actually called, their responsibilities, as trustees are the same. The directors of charitable companies also have responsibilities under company law. The duties and responsibilities of a charity trustee are wide ranging and need to be taken seriously. Anyone who wants to be a trustee needs to be
Tax Planning Through The UK Charity
Registering as a Guarantee Company
£ 42.00
This is our most popular package with UK residents, and includes:
Submission of applications that details company's executive officers
Do not normally have to pay income/corporation tax (in the case of some types of income), capital gains tax, or stamp duty, and gifts to charities are free of inheritance tax; 
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