Charitable and community companies

Incorporating a company

A number of types of company are available under the Companies Act 2006 (CA 2006), namely a public or private company limited by shares, private company limited by guarantee (which are primarily used by charities and other not-for-profit organisations and an unlimited company).

A key reason for choosing to incorporate a company as a form of business vehicle (as opposed to a sole trader, a partnership or another form of business vehicle) is that it is a separate legal entity which can enter contracts in its own name and is responsible for its own debts and liabilities. One of its key attractions is that its shareholders benefit from limited liability.

See Practice Note: Incorporating a company.

Company incorporation—glossary of terms

See Practice Note: Company incorporation—glossary of terms.

A company’s constitution

A company’s 'constitution' is defined under CA 2006 as including the company’s articles of association, and any resolutions and agreements affecting a company’s constitution. CA 2006 definition of 'constitution' is not exhaustive and also refers to other documents forming part of the constitution of a company, including the

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