Setting Up a UK Limited by Guarantee Company for Charitable Organisations

This company type is ideal for charitable organisations and not-for-profit entities such as clubs, associations, sports clubs, membership clubs, educational bodies, and voluntary organisations. It’s especially suitable for organisations that can’t set up a traditional limited by guarantee company. Here’s what’s included in this package and why it’s perfect for your organisation:

What’s Included in This Package?

1. Formation of Your New UK Limited by Guarantee Company

   • Hassle-free company registration process.

2. Charity Articles of Association

   • Tailored articles for your charitable objectives.

3. Super-Fast Online Service

   • No signatures or paperwork required.

4. Digital Copies of All Company Documents

   • Certificate of incorporation
   • Memorandum and articles of association
   • Company register with first entries

5. Printed Copies of Official Documents

   • Physical copies for your records.

6. Optional Free Extras

   • Free business startup and marketing guides
   • Free consultation with an accountant
   • Free digital marketing consultation
   • Free online company manager account (web portal)
   • Free customer support for the life of your company

7. Exemption from Having ‘Limited’ or ‘Ltd’ at the End of Your Company’s Name

   • If your organisation’s objects are charitable, you can apply for this exemption during the application process.

8. Non-Resident UK Bank Account

   • Support in opening a UK bank account for non-residents.

9. Integrated Payment Gateway

   • Seamlessly integrate a payment gateway into your web portal.

10. UK Smart Business Phone Number

    • A dedicated UK phone number to establish a professional presence.

11. Logo Design

    • Custom-designed logo to give your organisation a unique identity.

12. Website Setup (One Year Maintenance Free)

    • Professionally built business website with one year of free maintenance.

13. Letterhead Design

    • Professionally designed letterhead for official correspondence.

Why Use a Limited by Guarantee Company for a Charity?

1. Reduced Personal Liability

   • Protects the people running the organisation from personal liability for the company’s debts.

2. Funding Opportunities

   • Funding bodies, such as local authorities, often insist that the charitable organisation be registered as limited by guarantee.

3. Tax Relief

   • Enjoy tax benefits and reduced business rates.

4. Grant Eligibility

   • Eligible to receive certain types of grants and funding.

How to Apply for a Name Exemption

If the objects of your limited by guarantee company are charitable, you can be exempt from having “Limited” or “Ltd” at the end of your company’s name. During the application process, tick the box requesting the name exemption. You will also need to:

1. Download the limited by guarantee company articles of association.
2. Insert the objects of your organisation.
3. Upload the edited document.

These amended articles will be submitted electronically with your application.

Can You Use the Word ‘Charity’ in the Company Name?

The word “charity” is considered a sensitive term by Companies House. To include it in your company name:

1. Register your company under a different name to obtain a company number.
2. Apply to the Charity Commission to register as a “registered charity” and receive a separate charity number.
3. Once registered, change your company name to include the word “charity”. We can assist with this process and handle all necessary paperwork.

How Is a Charitable Organisation Limited by Guarantee Different from a Limited by Shares Company?

• A limited by guarantee company does not have shareholders. Instead, it is controlled by members.
• It must file accounts and a confirmation statement annually, similar to a company limited by shares.
• Liability is limited to the amount of the guarantee, typically just £1.

Pros and Cons of Setting Up a Charitable Organisation Limited by Guarantee

Pros:

• Pay reduced business rates
• Reduced personal liability
• Receive tax relief
• Access to grants and funding

Cons:

• Must comply with charity law and inform the Charity Commission about your work
• Activities are restricted to those charitable in law
• Trustees do not usually benefit personally
• Must remain independent when collaborating with other organisations

This comprehensive package is designed to streamline the process of establishing your charitable organisation, ensuring compliance with UK regulations while providing essential tools and services to help your organisation thrive.