| Thinking of Starting Non-Profit Company? Why do not go forward with the UK Company Limited by Guarantee
Welcome to Coddan, UK companies incorporation agent. Our company offers UK companies incorporation services for clients from all over the world. We are pleased to provide you with information, guidance, and advice about setting-up a small business in the UK. Do you want to incorporate your business in Edinburgh, London, or Liverpool? Are you looking for information and guidance regarding limited company registration and small business start-up? Why should you bother with registering a company? Leave this complicated process to the professionals!
We will give you any assistance or advice related to limited company registration matters from the moment you choose to move forward with us, and for as long after incorporation as you may require. We provide one of the highest-rated companies incorporation services to our clients around the world, particularly for UK residents. Our expertise ranges from local to international affairs, thus giving our clients an edge over others in accessing the international market. | Important Note:We offer a same-day UK limited company registration service. Have your new UK limited company started within only 6–8 business hours, whether it is a private company limited by shares, a private company limited by guarantee, a public limited company, a holding company or a flat management company. With Coddan your business start-up idea can literally become a reality in hours! It usually takes about 4–5 working hours to incorporate a company limited by guarantee. We incorporate all our UK non-profit companies electronically. If you are intending to help disabled, homeless, orphan children, or poor people, or to promote religious ideas to the public, this type of company is what you need. We prepare and electronically submit new guarantee company registrations (formations) as soon as we receive your instructions. Our team of professionals has the experience to set-up your guarantee company quickly and efficiently. For more information about the company limited by guarantee incorporation service available from Coddan, please visit the formation of non-profit companies section of our main website.  | |  | |  |   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 organisation's income is distributed to its Directors or officers. Non-profit companies receive the same limited liability protection as for-profit companies. This means that the Directors or trustees, officers, and Members are typically not personally responsible for the debts and liabilities of the non-profit organisation. This formation is 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. A company limited by guarantee is the main vehicle in the UK which is used for non-profit activity. If you are thinking of setting up a non-profit activity, for example a foundation, association, charitable company, club, and many others, a UK company limited by guarantee will be the best solution for you. Limited by guarantee – what does it mean? This type of company means that Members' liability is limited to the amount they have agreed to contribute to the company's assets if it is wound up. Coddan offers a guarantee company incorporation service for the competitive price of only £42 You will receive your new company limited by guarantee and can start its activity immediately. The company formation process is simple; all that you need to do is complete our online order form. Incorporation usually takes 8 hours. If you are interested in learning more about UK private company limited by guarantee registration, please feel free to visit information on guarantee company registration . |   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 organisation's income is distributed to its Directors or officers. Unlike unincorporated associations and trusts, the company has a separate legal existence from its Members. The company limited by guarantee is a special type of company available to non-profit 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).
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 per cent 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.
For more details about charitable companies in the UK, including registration process, activities, restrictions, and purposes of the companies limited by guarantee, please visit the UK charities section of our main website. | |  | |  | | Establishing a charitable company in the UK
What is a UK charity? In practice, nowadays, the charity is either going to be a trust or a corporation. It has to be established for charitable purposes. You could set-up a charity for genuinely philanthropic means. There are indirect advantages of charities; the most important of these advantages is that it enables you, as charitable trustee, to retain control of assets. It can give you an enormous amount of patronage and, once you have got beyond a certain amount of wealth, there might be a great deal to be said for putting a substantial amount into a charitable trust of which you are the first-named trustee as it gives you control of that empire without any related taxes or tax problems.
What are charitable purposes in English Law? These are very wide-ranging indeed. There is a traditional classification, which falls into four parts. The overriding requirement is that, in principle, charitable purposes should always be for the public benefit – that is perhaps eroded in some cases. The traditional fourfold distinction was between: charities for the relief of the aged, impotent, and infirm (basically the poor and those medically disadvantaged); charities for the furtherance of religion; educational charities; and then a fourth head that has expanded over the years and now includes many cultural matters.
Charity is exempt from UK taxes a UK charity is exempt from UK taxes. It is exempt from taxes on income except trading income, but even there, there is a well-known device which is – as it were – approved by the Charity Commissioners and the Commissioners of Inland Revenue whereby it can even escape tax on its trading income. Gifts to charities can be extremely tax-effective but this, of course, is only of interest if you are a person who would otherwise be a UK taxpayer.
If you are thinking about starting a non-profit company in the UK and want more information, the companies limited by guarantee formation section will help you to find out more. |  | | |
