A charitable company is a limited company, almost always limited by guarantee, that has only charitable purposes. It is registered with both Companies House and the Charity Commission and answers to both.
Two regulators
A charitable company is a company and a charity at the same time. Its directors are also its charity trustees, and it has two sets of duties:
| Companies House | Charity Commission | |
|---|---|---|
| Registration | Company number | Charity number |
| Yearly filings | Accounts and confirmation statement | Annual return, plus trustees’ annual report and accounts for larger charities |
One set of accounts serves both. They follow company law and the Charities SORP, with a statement of financial activities in place of a profit and loss account.
Compared with a CIO
A CIO gives the same limited liability with only the Charity Commission to deal with, which is why most new incorporated charities choose it. Charitable companies remain common among older and larger charities.
Read more: Corporation Tax for charities and CASCs (CT600E) and Company limited by guarantee.