Within the borders of the United Kingdom, there are a number of people engaged in business activities that could be deemed as being “non-profit” in nature. If you are looking to set up a non-profit company then there are a number of options available to you depending on the intended nature of your business.
The options for forming a non-profit company generally include starting a trust, forming a co-operative, setting up a charity, starting a community interest company or (in the future) registering a charitable incorporated organisation.
Non-profit companies generally exist solely to provide benefits for others. They are not formed to make a profit but to use any funds they acquire for causes outside the company. Charities for example will use their money to fund “charitable objectives” for the benefit of the public. These include things like advancement of education, relief of poverty, protection of animal welfare even the advancement of amateur sport, art and culture.
Non-Profit Company Structure
The most common choice (in terms of structure) for forming a non-profit company is a Company Limited By Guarantee. Due to the very nature of this sort of company, it is clear that they are established for non-profit objectives. Due to the fact that the company is limited by guarantee rather than shares, there is no profit distribution. The members provide a guarantee with regards to the winding up of the company that they will contribute a (small) financial amount. That is their main undertaking. Therefore all the finances gained by the company in their operation can be used to support the cause they were set up to help.
Non-Profit Company Formation – The Options
Take a look at our page on registering a company limited by guarantee to see if this is the service for you. For whatever you choose to start your non-profit company we provide a service to help. We have services and information with regard to charity company limited by guarantee, starting a charity and community interest companies.
The Company Warehouse is keen to help businesses start up and succeed, our services are aimed at helping you fulfil your requirements in regards to the law and get the most out of your new company. Over the years we have helped another of people set up non-profit companies for many different reasons. Our professional team are available to help you with guidance on the best structure for your company depending on your intentions. Our services are fast and easy to use. We take the hassle away from you and allow you to get on with the important task of putting the business together and getting started supporting your cause.
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