Non Profit Company
If you are thinking about starting a non profit company, then you probably have charitable or community spirited objectives in mind. Unlike the average person looking to start a company, you aren’t necessarily interested in making a profit but just want to help others. Luckily, there are a number of options open to people in your situation looking to set up a non profit company.
What Are The Options?
Depending on what you are thinking of doing with your non profit company, there are a few different options available. Each has its own advantages and disadvantages. The most obvious choice for most people and the one you are most likely to know about already is setting up a charity. Charities are necessarily non profit in nature. They are set up to further a specific cause, help a section of society or give some relief to those in need. They might well meet your needs with regards to setting up a non profit company for your chosen reasons. However, it isn’t as simple to set up a charity as you might think. Charities need to be registered with both Companies House and the Charities Commission and are regulated by laws governing both charities and companies. There are other options for forming a non profit company and you should give them some consideration before you decide.
You might consider setting up a social enterprise or community interest company instead. These are non profit bodies specifically created for the benefit of the community. Slightly less strictly regulated, these sorts of company are easier to establish and run and thus may be more appealing, depending on your chosen objectives.
Another simple choice for forming a non profit company is to simply register a company limited by guarantee. Being limited by guarantee rather than shares means that the company is automatically non profit in nature. Drafting objects into the memorandum of association to specify the non profit nature of the company undertaking will make this more clearer and ensure that your intended objectives are adhered to.