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  • Coddan Company Formation Agent in London
  • Coddan Company Registration Agent in London
  • Coddan Company Incorporation Agent in London
  • Coddan Company Start-Up Agent in London
  • Coddan Business Registration Agent in UK
  • Coddan Business Formation Agent in UK
  • Coddan Business Start-Up Agent in UK
  • Coddan Companies Formation Agent
  • Coddan Companies Registration Agent
  • Coddan office in London

Flats Management Company Formation with Coddan, Simple Formation of Flats Management Company within 3 Hours!

UK flat management company formation: forming a flat management company is swift and straightforward with Coddan, and our incorporation fees are among the lowest anywhere. We cut out all the unnecessary red tape and flats management company formation services, such as expensive solicitors, and deal directly with Companies House to ensure flat management companies are registered in the fastest possible time - often in a matter of hours - and with the minimum of fuss. Our online flat management company formation application process, which is approved by Companies House, means all clients have to do is fill in their details and submit it, and we do the rest.
Coddan as flats management company formation agent is an expert in flats and property company formation, we helped a lot of UK companies to register and start flats management business. Form your limited company today with Coddan, it is cheap, simple and fast.

Flats Management Company Formation

ADVANTAGES

  • Companies formation 24/7
  • We form different types of companies
  • We provide post-formation service
Flats Management Company Registration

CONVENIENCE

  • Company formation in 3 hours
  • Provision of a registered address
  • Qualified pre & post formation support
£149.89

NO ANNUAL CHARGES

1
option

This package is for customers who want the simplest flats management company formation with bank account at Barclays, RBS, Lloyds or NatWest (optional), all corporate documents produced electronically.

The following documents will be e-mailed to you upon the formation of flat management company limited by guarantee:

    • The certificate of incorporation;
    • The memorandum & articles of association;
    • The fast-track bank account with NatWest or Barclays.
£164.89

NO ANNUAL CHARGES

2
option

This is the basic flat management company limited by guarantee formation with NatWest or Barclays bank account (optional) package with additional documents produced electronically & the laminated certificate will be send by post.

This flats management company formation offer includes all services mentioned in the first option, plus:

  • The meeting of the board of directors;
  • Membership certificates;
  • The company' register;
  • The laminated certificate of incorporation.
£207.89

No annual charges

3
option

This is one of our very favorite property management company formation packages, which comes with the Barclays or NatWest bank account (optional).

The third option includes all benefits & items mentioned in the second option, plus free delivery of:

  • One set of the memorandum and articles of association with a company's registers printed & top-notch bound;
  • The first meeting of the board of directors, elegant printed membership' certificates & the rubber stamp;
  • The certificate of the beneficial owner.
£214.89

Annual fees from £75.00

4
option

This is the most popular property management company formation packages which comes with the registered office address in London, at Baker Street.

This company formation offer includes all company registration benefits & items mentioned into the second option, plus the provision of:

  • The registered office address in London;
  • The government mail forwarding;
  • The secretarial compliance service & the certificate of the registered office address;
  • Additional services are available.
£149.89

NO ANNUAL CHARGES

1
option

This flat management company limited by shares formation package is for customers, who have an address in the UK, & want the simplest offer with documents produced electronically.

The following documents will be sending via e-mail upon the formation of property management company:

  • The certificate of incorporation;
  • The memorandum & articles of association;
  • The fast track corporate bank account with NatWest or Barclays (which is optional).
£164.89

NO ANNUAL CHARGES

2
option

This is the basic flats or property management company formation package for such customers, who have a valid address in the UK, with additional documents produced electronically & the laminated certificate will be send by post.

This company formation offer includes all services mentioned in the first option, plus:

  • The meeting of the board of directors;
  • Share certificates;
  • The company' register;
  • The laminated certificate of incorporation (free delivery).
£207.89

NO ANNUAL CHARGES

3
option

This is one of our very favorite UK property management companies' formation packages, which comes with the Barclays or NatWest bank account (optional).

The third incorporation option includes all benefits & items mentioned in the second option, plus free delivery of:

  • One set of the memorandum and articles of association with a company's registers printed & top-notch bound;
  • The first meeting of the board of directors, elegant printed shares' certificates & the rubber stamp;
  • The certificate of the beneficial owner.
£214.89

ANNUAL FEES FROM £75.00

4
option

This is the most popular property management company formation packages for British customers & expatriates who are looking to get a registered address alongside with the UK properties management company formation.

This company formation offer includes all LTD registration benefits & items mentioned into the second option, plus the provision of:

  • The registered office address in London;
  • The government mail forwarding;
  • The secretarial compliance service & the certificate of the registered office address.

Are you Ready to Form a Flats Management Company & Need the Formation of Flats Management Company in London, Edinburgh, or in Belfast?

We have a range of flat management companies formation packages to suit individual needs, and they start from just £149.89, with no hidden charges or fees. Clients can also get an optional free business bank account with either NatWest, Lloyds, RBS or Barclays. In addition, at Coddan, we provide a range of UK flat management company formation services to help people establish their own firms. We have nominee directors and nominee shareholders services, in cases where clients don't have enough officers to propose for company directors, secretary or shareholders, or indeed where people wish to register a flat management company and retain their anonymity & not have their own names appear on the register at Companies House.

Using nominees is especially useful where companies are expanding and don't want competitors to know who is behind a new flat management company formation in a particular area. We also provide registered office addresses for UK flat management company registration purposes, at prime locations in London and major cities right around the country. This is particularly helpful for those who run their business from home and don't want their address on the public records, as well as not inviting potential inspection visits from the authorities as well as other people turning up unexpectedly, such as creditors.

When your flat management company is formed, we will give you all the legal documentation from the authorities, including certificate of incorporation and our own tailor-made memorandum and articles of association. If you're unsure what kind of company you would like to establish, our expert business formation consultants are available to advise. Talk to us today and let us help you get your flat management company formed, at low costs and in no time. If you need an assistance with flat management company formation, you can also speak to our flat management companies formation advisors between 9.30am-6.00pm Monday to Friday by telephoning + 44 (0) 207.935.5171 or + 44 (0) 330.808.0089 (national rates).

Flat Management Company Formation Advice, Advantages of Forming a Flat Management Company
Flat Management Company Formation With Bank Account & Company Secretarial Agents ...

Flat Management Company Incorporation

Flat management company formation: anyone who is looking to register a new flat management company in the UK can do so within a few hours using one of Coddan's business formation packages. The process can be completed online and your certificate of incorporation and memorandum and articles of association will be emailed out to you. If you start the process early enough in the day and Companies House is not completely swamped then a same day registration is perfectly possible.

A range of flat management company formation packages are available with additional options like extra documents, leather bound documentation or a registered office address. Please do get in touch if you would like to talk to one of our advisers about your requirements. We can register a flat management company with your own address and nominated officers, provide notarisation and apostilled documents for UK and overseas residents. If you need assistance with a flat management company formation, you can also speak to our business advisors between 9.30am-6.00pm Monday to Friday by telephoning + (0) 207.935.5171.

How to Register a Flat Management Company? Registering a Flat Management Company With Coddan Is Simple & Quick Process

Register a Flat Management Company

Are you looking for a quality information & practical guidance how to register a flat management company & start your own flats or properties management business in the United Kingdom, how to register your new block of flats private company limited by guarantee or limited by shares, how to setting-up and running your property management business; how to select the best type of a business registration form to manage block of flats, how to incorporate a private flat management company limited by guarantee & need a small properties management business start-up advice?

Do you need a UK business company formation agent, with the prompt service and an expert advice from the well-qualified professionals whose complementary skills and long experience enable them to deliver the quality service to the UK and international customers on the areas of a new flats management company formations, auditing, bookkeeping, accounting, taxation, corporate management consulting, business maintenance services, trusts' administration, or offshore businesses incorporation service, liquidation, insolvency and limited companies recovery?

£1,250

Coddan offers fixed fee for the complete UK private limited company formation with annual account & return preparation & filing it with Companies House and HMRC.

The description of our package in brief:

  • The registration of a new company with Companies House and HMRC
  • The provision of a registered office address in London, and appointment of a nominee company secretary
  • Opening of a corporate bank account
  • Dealing with the company' secretarial issues; etc.
  • The preparation and filing of the annual account and return with Companies House and HMRC

£1,800

Our business start-up package is ideal for customers, who need a monthly bookkeeping, and the preparation of the final year-end account & its submission with Companies House & HMRC.

Our business and accounting start-up services include:

  • The registration of a company
  • The registered office address
  • Display of a company name
  • A nominee secretary
  • A business bank account
  • The provision of a tax agent with the HMRC
  • A monthly bookkeeping service
  • The PAYE scheme registration
  • The preparation & filing annual return & annual account

£2,400

This package is ideal for such UK and non-UK customers, who needs to appoint Coddan as the incorporation & tax agent to deal with the bookkeeping & VAT requirements.

  • The registration of a company & and the provision of registered office address in London
  • The provision of a nominee secretary & opening a bank account
  • The VAT registration & the provision of the tax agent service
  • The keeping of the VAT & bookkeeping records with its submission & timely registration with CH and HMRC

Are you looking to register a small business in England, Scotland, Wales or Ireland? Do you want to register a limited company for the properties management needs in Belfast, Dublin, Edinburgh, London, Manchester, or Sussex? Do you have an idea for starting a new property management business in the Great Britain, and want to register a limited liability company for the management needs, or to create a new firm now?

On our web-site, you can get all information on choosing and registering the right legal structure for your properties management business, legal tips on day-to-day business operations, & an overview of the employment law issues, and much more.

If you have an idea for starting a flat management business in the UK, forming of a private LTD company online, becoming or registering as a private company limited by guarantee - we can assist you and provide the higher standard of support for starting-up a flat management business & registering a company online directly from the ground up. The better the company's structure is prepared upon registration, the better results can be achieved on the later stage.

It is our job to assist in evaluating the options available at the beginning. In addition, we offer services regarding the formation of flats management business entities in the UK, EU, and offshore (companies and partnerships) - register your manage of properties company with us, and enjoy the full support of the excellent & fully trained team of Coddan.

During our organisation's experience, Coddan has rapidly expanded its portfolio of offshore international and local companies creation, - this is the result of the quality service we offer & the trust our customers place on us. We are dedicated to deliver quality and professional companies incorporation services to our clients worldwide, to enable them to run their businesses more cost-effectively and efficiently.

Residents' management companies are also known: -

  • Block management companies
  • Flat management companies
  • Residents associations
  • The management company

In law, a limited company is a 'person' in its own right. This means it can own property (such as a freehold or leasehold) and enter into contracts in its own name. It exists independently and separately from the people who manage or own it. When a property is divided into a number of flats, each flat owner usually has a lease of their own flat, but they may also be a member of a management company that owns the freehold (or lease) of the entire building.

As members of the company, the flat owners have their say in running it. If the members own shares in the company, it is common practice in the company's constitution (its articles of association) that members who sell their flats must also transfer their membership to the new owners. This ensures that, at any given time, the company limited by guarantee represents the interests of all the current flat owners, and it remains a separate legal entity regardless of who holds its membership.

If your entity is a company limited by guarantee, it means that the members have agreed to contribute to the assets of the company if it is wound up.

The minimum requirements for the registration of a flat management company limited by shares:

  • A private company must have at least one director, one shareholder (or the member), and may have a secretary.
  • You need at least one person to form this type of the company. If there is only one director, and that director is a natural person in your company, that director can also act as the secretary and/or shareholder (member).
  • A company must have at least one director who is a natural person. This requirement is met if the office of the director is held by a natural person as a corporation sole or otherwise by virtue of an office.
  • You can register a sole director' company, if you are familiar with the secretaries duties and responsibilities, because all of them belongs to a sole director.
  • The Companies Act imposes no restriction on the minimum age of company directors. However Companies House will actively discourage the appointment of anyone under the age of 16 from taking up a company directorship on the grounds that the individuals concerned may not fully understand the legal liabilities that go with the position and for the most part will not have the experience necessary to perform the duties of a company director.
  • Under the Companies Act 2006, there is no restriction on any or all of the members/shareholders being from an overseas country (i.e. outside the United Kingdom in terms of residency, domicile, citizenship, place of incorporation or all or any of those concepts).
  • There is no requirement for the officers of your company to be UK citizens or residents, nor for them to hold valid work permits.
  • Owning, or being an officer of a UK company does not, however, grant you any right to live or work in the UK if you are a foreign national.
  • Your flats management company must have a registered office address within England or Wales or Scotland; this is the official address of your company and will be on the public record as such.
  • Your flats management company must hold its official company documents at its registered office address: its register of shareholders (or members), and its constitutional documents.
  • So long as you maintain a registered office address in England or Wales, or Scotland, you can conduct your business from any place in the world: you do not have to run your business from the registered office address.

What We can Do for You: Flats Management Company Formations Agent vs. Companies House

Flats Management Company Formations Agent

Coddan is the UK companies' (limited by shares or limited by guarantee) formation agent, certified accountants and business consultants' firm with many years of experience in assisting clients with business incorporation needs in the United Kingdom (England, Wales, Scotland and Northern Ireland), as well as with the set-up and formation of the offshore tax-free companies, offering in most circumstances the same-day online flats management companies registration services for the UK residents & as well as for non-UK based customers.

Our expert knowledge and extensive experience of setting-up of property management businesses and management companies' structures has made us possible to provide the very professional, prompt, and the most efficient flats management companies' incorporation level of services.

Our team of tax-advisors and incorporation consultants will be pleased to assist with your enquiries related to establishing & maintaining the limited liability flats management companies or creating the more complex corporate legal & the tax-savings structures.

NEW CHOICE

£324.00

We offer company formation in London online, with the registered office address, SAIL address, director's service address and business address together.
The short description of this option:

  • The provision of the registered office address in London, at Baker Street
  • The government mail forwarding or scanning with forwarding to your e-mail
  • The certificate of the registered office address
  • Monitoring changes in membership ownership of the company
  • Ensuring that the company files statutory information promptly, etc.
NEW OPPORTUNITY

£724.00

This UK company formation offer is ideal for clients, who need to use our registered address in London and open an EU bank account.
Our limited company formation in London offer includes:

  • The UK private company registration online
  • The registered office address service in London
  • The SAIL inspection address in London
  • The director's & shareholder's service address in London
  • The business bank account within an EU bank. Additional service is available
NEW PREFERENCE

£1,224

This company formation offer is ideal for such clients, who need to appoint nominee members and open a multi-currency bank account outside of the UK.

  • The registration of a company with business address in London
  • The provision of nominee officers & opening an anonymous bank account in EU
  • The details of the beneficiary owner are not available for public
  • You will be appointed as the banking account manager
  • Transfer funds using Internet banking practically 24 hours a day, 7 days a week

On our web-site, you will find the number of useful tips and legal information, downloadable documents, which may help you to learn what to take into the consideration when deciding among the companies limited by shares registration, private limited companies by guarantee formation, setting-up of the properties management entities, registering as the single or blocks' of flats management companies, establishing of other business structures.

Our great value the UK FMC company formation price starts from just £149.89, we consistently provide the quality business registration assistance & the best incorporation service to satisfy our valued customers - you will receive the personalised telephone & e-mail help that you really need!

Coddan' flats management companies formation phone lines provide the confidential incorporation advice, business creation support, and the access to the pastoral care for business consultants & London based certified accountants. Some of our help lines can also be contacted via the phone, or via the online help advisors, or even by an e-mail and by fax. Our team of friendly flats management companies formation staff (who are all convincing specialists) is on hand to ensure that your move goes through as smoothly and swiftly as it possible.

Confidential flats management business companies formation advice & support services have been provided from our premises at 120 Baker Street, in London. We are committed to providing the comprehensive range of the properties management incorporation services and ensure that we offer the legal registration services that blend professionalism with the friendly, and informal approach.

By doing so, we remove the mystique that sometimes surrounds our profession, we believe that each client has an individual and specific legal requirements and therefore provide a prompt & professional incorporation service, which is individually tailored to the particular needs of each of our customer. By doing so, we are able to advice & assist in the clear, direct, and the cost effective business registration manner.

Our business is international - we offer a wide range of legal incorporation services to multinational, public & private clients and entrepreneurs in different business industries. Our firm deals with transactions of all sizes and complexity combining global and local expertise on behalf of clients in the UK, including the Northern Ireland, Republic of Ireland, and the Isle of Man, & around the world.

In addition, we also advise foreign customers on starting and doing business in England, Wales, Scotland, Northern Ireland, Republic of Ireland, and the Isle of Man & in other offshore countries. We can provide you with a wide range of company-related legal advice covering all aspects of the start-up, trading activities and business expansion in the UK and overseas as well as realising value.

Flat Management Company Formation Tips

Useful Tips:

There is no requirement for the officers of your company to be the UK citizens or residents, or for them to hold the valid work permits. Owning, or being an officer of the UK company does not, however, grant you any right to live or work in the UK if you are a foreign national. A flat management company must have at least one director, one shareholder (member), and may have a secretary.

If you prefer to order flats management company registration by phone or via e-mail, or if you would like to place an order at our office, for an initial discussion, with no obligation please call us at +44 (0) 207.935.5171, or 0330.808.0089 and benefit from our personal guidance in registering the company limited by guarantee or limited by shares. We are looking forward to serving your business needs.

Starting a New Flats Management Business: Online Flats Management Company Formation

Starting a New Flats Management Business

Many small businesses choose to use the services of flats management companies formation agents, like Coddan; to undertake all of necessary formalities on their behalf. Our aims are to provide you with the professional, affordable range of business support services to enable you to incorporate and run your own successful flats management business.

We offer one of the most customisable, cost-effective, and affordable properties management company set-ups for small businesses. Unlike other companies providers and companies formation agents, who hide up the front of incorporation costs, our fees are very simple. We offer a new flats management company incorporation only for £149.89 - no hidden costs, annual fees, memberships or other pricing strategies. In fact, we guarantee that our flats management business registration and management service fees are the lowest that you may find.

Starting a new flats management company under new Companies Act 2006, is not particularly complicated.

There is a still requirement that application for the flats management company registration should be submitted to the Companies House with the signed copies of the memorandum and articles of association (if company chooses to file one). There are no more requirements that application for management company registration to be signed in front of the notary public, solicitor or a commissioner of oath, but application itself is now a bit more complicated then old forms 10 and 12 used for the company formation before final implementation of Companies Act 2006.

Application for the flat management company registration must contain the following information:

  • The proposed of a company name
  • The location of the registered office address
  • The type of the company to be registered
  • The type of the model articles of association to be used (if company chooses to use the model of articles provided by the Companies House)
  • The statement of the proposed officers
  • The statement of the capital & initial shareholding (or membership) or statement of the guarantee for companies not having share capital
  • The statement of the compliance

Coddan can make all this process much simpler for you. When applying for online flats management company incorporation service from Coddan, all you need to do is to complete our online incorporation order form for the type of a company you have selected and we will take care of formalities.

When applying for a flat management company formation with Coddan, our clients have the option to choose from the standard memorandum and articles of association provided by us and the customised articles of association drafted by our specialists. Customised articles of association prepared by Coddan provides the full description of the company's proposed activity, share (or membership) capital, the location of the registered office address, rights & responsibilities' of directors and shareholders (members) and much more.

RMC Company Registration Note

Important Note:

A residents management company (RMC) protects the interests of the leaseholders. RMC's typically manage common parts of the building although they may have other responsibilities. Your property probably has parts common to all the flat owners living in it: boundaries, roofs, halls, drives and gardens being typical examples. These all require maintenance, insurance, lighting, etc. Call us to discuss your needs and see how we can help.

We can also register your flats management company using your own memorandum and articles of association. You just need to complete our online registration order form, and then e-mail us the memorandum and articles of association that you want to register your flats management company with us.

However, please make sure that your memorandum and articles of association complies with the requirements of new Companies Act 2006. If your application will be rejected by the Companies House, due to the provision of the wrong documents, Coddan will not be able to offer you refund for flats management companies registration process.

Incorporate a FMC Company Online: What Does a Flat Management Company Do?

Establish Flat Management Company

Flat management companies typically manage common parts of the building. They may have other responsibilities. Your property probably has parts common to all the flat owners living in it: boundaries, roofs, halls, drives and gardens being typical examples. These require maintenance, insurance, lighting, etc. The individual flat owners usually fund these costs, by making periodic contributions into a pooled fund.

Many flat management companies choose to account for these transactions within the company. If your company just pays a few bills, perhaps for repair or maintenance, then your advisor may say that these payments need not go through the company's books. Less formal arrangements, such as collecting the money through a residents association, may be satisfactory.

Flat Management Company Registration Note

Important Note:

Residents often use a limited company for collecting a central pool of cash for carrying out repairs and maintenance to common parts of the property. If a limited company used in the management of a block of flats, it is often a condition of buying a flat that the buyer becomes a member or shareholder of the company. Call us to discuss your needs and see how we can help.

The company could then continue to own the freehold (or head lease) of the property, but it would conduct all accounting transactions elsewhere - the company would then be 'dormant'.

You would still have to prepare accounts, present them to members, and submit them to Companies House and HMRC, but all that would mean is a simple balance sheet that does not have to be audited. You should seek professional advice before adopting this approach to ensure that you are complying with the legal requirements.

Do You Need a Flat Management Company? What is a Flat Management Limited Company?

In law, a limited company is a 'person' in its own right. This means it can own property (such as a freehold or leasehold) and enter into contracts in its own name. It exists independently and separately from the people who manage or own it. There are different types of limited company: "public companies", whose shares can be bought and sold by the general public, and "private companies".

It is unlikely that a public company would be suitable as a flat management company. When a property is divided into a number of flats, each flat owner usually has a lease of their own flat, but they may also be a member of a management company that owns the freehold (or lease) of the entire building.

As members of the company, the flat owners have their say in running it. If the members own shares in the company, it is common practice in the company's constitution (its "articles of association") that shareholders who sell their flats must also transfer their shares to the new owners. This ensures that, at any given time, the limited company represents the interests of all the current flat owners, and it remains a separate legal entity regardless of who holds its shares.

Some limited companies do not have shares and are instead "limited by guarantee". In England and Wales, this includes commonhold associations and the "right to manage" companies. If your company is limited by guarantee, it means that the members have agreed to contribute to the assets of the company if it is wound up. In this web-page, the term a "shareholder" and "member" means the people who own the company. Instead of having a company, you may wish to consider two other options: -

1. If your organisation does not own property but simply collects money from residents for repairs and maintenance, and pays bills when they arise, then less formal arrangements may be appropriate such as a residents association.
2. Residents could consider buying the freehold of their properties in their own names or as trustees.

If you are uncertain whether the options above are appropriate for your circumstances you may want to seek professional advice

Flat Management Company Incorporation Note

Important Note:

The RMC residents management company will have a memorandum and articles of association specially drawn up to allow the company to own, manage and administer a leasehold or freehold property, which is normally divided into several dwelling units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer the ownership of the share to the new leaseholder when disposing of the property. Call us to discuss your needs and see how we can help..

Why To Register or Incorporate a Property Management Company?

There are many reasons for forming and registering a limited company. Outlined below are a few reasons, which relate to flat management companies. This list is not exhaustive.

One reason for residents in a block of flats to have a limited company is to own the freehold or head lease. Freehold gives outright ownership of the property to the limited company. A head lease is a lease granted directly to the limited company, which turn grant subleases of the property (or parts of it) to the flat owners. For the purposes of this web-page, the difference between a company that owns a freehold and one that holds a head lease is immaterial.

However, residents often use a limited company for collecting a central pool of cash for carrying out repairs and maintenance to common parts of the property. If a limited company is used in the management of a block of flats it is often a condition of buying a flat that the buyer becomes a member or shareholder of the company. In some cases all flat owners automatically become directors.

Another reason to set up a limited company is so that leaseholders of flats can exercise their right to manage the building they live in. The right to manage must be exercised through a limited company set up for that purpose. This type of company is called a right to manage (RTM) company (please refer to the relevant section of our web-site).

A limited company would also be set-up to own and manage the common parts of a development made up of separate units under commonhold ownership. This type of company is called a commonhold association.

Incorporate a British Flat Management Company: How Does a Flat Management Company Works?

Incorporate Flat Management Company

In law, a limited company is seen as an 'individual' in its own right. This means it can own property (such as a freehold or leasehold) and enter into contracts in its own name. It exists independently and separately from the people involved. As the name suggests, many are connected to blocks of flats where an arrangement needs to be made to deal with the running, maintenance and repair of the common parts of the building.

The leaseholders of the flats are the members of the company, some will be appointed to act as directors and one will usually be the company secretary. They may appoint a managing agent to carry out the day-to-day work, or one may be specified in the leases with the freeholder.

The freeholder of the land on which the flats stand may be held by a third party, or it may be held by the management company (so that the leaseholders have the ultimate benefit of the freehold). The simplest form of flat management company is a dormant one which holds the freehold of the land for the members of the company, who are leaseholders of the flats built on that land.

This type of company can also provide a structure for the management of the common parts of private freehold estates of houses, which may include roads, communal gardens, security and other facilities. A corporate body is needed to hold land, unless there are four or fewer lessees concerned, in which case the freehold of the land could be held jointly in the lessees' own names.

However, if the freehold is held directly by the lessees jointly, then each time a flat changes hands, apart from the transfer of the lease on the flat, there would need to be a transfer of the freehold into the new set of names in the Land Registry. Getting all the necessary signatures and consents would take time and add to costs. The use of a flat management to hold the freehold avoids the problem.

A flat management company may be incorporated under the Companies Acts, either as a limited company with shares, or a company limited by guarantee. Either of these forms of incorporation provides limited liability for its members, subject to the usual caveats in the insolvency legislation about trading properly. Each also provides a corporate vehicle that can hold the freehold (or head lease) which underlies the various occupiers' leases.

It can also collect maintenance charges and any ground rents, hold a sinking fund for major repairs, arrange cleaning, decoration, security, insurance, a warden's salary for sheltered schemes and janitorial or concierge services where appropriate.

The company limited by shares was designed for profit-making enterprises, but with properly drafted articles also works well for flat management companies. When the related property interest changes hands, the leaseholders' share also has to be transferred by a stamped stock transfer form (often for a token payment with minimum (5.00) stamp duty paid) and the change recorded in the register of members. Coddan's articles provide a special procedure to facilitate the transfer of the relevant share if a lease has changed hands but the transfer of the share was overlooked.

The company limited by guarantee was intended to provide a form of incorporation with limited liability suitable for a group of members with a mutual interest of a not-for-profit nature. The main advantage of using a guarantee company rather than a company limited by shares is that no stamped transfer is needed on changes of members (on sale of the related lease).

The articles can simply provide for the membership of the outgoing lessee to terminate automatically when they cease to hold the lease, without the need for any document to be signed by that member giving up their membership. The new owner of the lease can then be admitted to membership in place of the outgoing member.