Choosing to Incorporate

Choosing to incorporate as a Company is a big step for Voluntary and Community Sector groups.

The company structures most relevant to the Sector are:

• Company Ltd by Guarantee www.companieshouse.gov.uk
• Community interest Company (CIC’s) www.cicregulator.gov.uk

You might also choose to become a Charitable Company, if your group has Charitable Aims and is set up for Public Benefit. In the near future the Charitable Incorporated Organisation (CIO) will be available for Charitable Companies – keep your eye on the Charity Commission website for when this will become available: www.charitycommission.co.uk .

Some advantages of incorporation are:

• Limited liability for your organisation’s governing body (if applicable to company type)
• Your organisation will be recognised as a ‘legal person’ in its own right.
• Your organisation can enter into contracts etc in its own right. It will be able to enter into contracts as a company instead of individual members of the management committee having to do this.
• Any legal action would be brought against the company, not individual Committee Members.

For more information about incorporation and the different types of company available, see the website links above or get in contact with us here at CVS.