How to Incorporate a Flat Management Company - What is a Property Management Company?
. One important role is that of acting as liaison between the landlord and tenant. Duties of property management companies include accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants. In exchange for the service they provide, property management companies charge landlords a percentage of the gross rent collected each month (typically 3-10%), in addition to lease commissions. In addition to managing income and expense related activity, property managers may also manage construction, development, repair and maintenance on a property. The direction / choreography of repair/maintenance is quite a large part of a property manager's function. Property manager relations with Tenants gives a face to the Landlord and provides them the necessary buffer servicing their desire to profit and distance themselves from their tenant constituency.
Although residents are normally willing to stand as a director of their property management company, most residents will not want to hold the position of company secretary. All limited companies must have a company secretary. These positions can be held by a corporate body and does not need to be a member of the property management company. Coddan can be appointed to act as a nominee company secretary and fulfil the following roles: issue formal notices and agendas for board meetings in accordance with the directors instructions, call Annual General Meetings and distribute formal notices, maintain minute books, hold the company seal and maintain the seal register, prepare and issue Share Certificates when a lease is assigned (if applicable) and maintain the statutory books.
We offer electronic property management company registration and electronic filing of documents. We also offer nominee secretary and registered office address facilities in addition to flat management company formation. We always hold in stock at least 100 readymade companies available for immediate dispatch. Allow us to help you establish your property management corporation and get it running, to select the best business for incorporation, or to register your firm with the UK Companies House. Same day flat management company incorporation for £42.00. Property management company incorporation usually completed in 4-6 hours using Companies House online business registration services. We supply expert advice in navigating English legal and business systems helping you to establish your business in England, Wales or Scotland. If you have an idea for a business, we can also assist you in starting-up a new business directly in the UK from the ground up. In the United Kingdom, you must register your business, which we can do for you. Let us know how we can help. Please Note: Property Management Company can be registered as a private company limited by shares or as a private company limited by guarantee.
Choose one of the following packages that will best serve you:
Further information
A Flat Management Company is normally incorporated to manage a property or group of properties where there are multiple tenants. A Flat Management Company is normally used to protect the interests of the leaseholders. Want to set-up a property management business? Need to incorporate a property or flat management corporation? Do you want to establish a flat management business entity in one day? At this page you may form a flat management companies, register property management companies online. DO you want to know about flat management LTD benefits and advantages? A Flat Management Company has its 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.
Flat Management companies are companies used to manage the whole of or parts of a site or building on behalf of its owners. When there are multiple tenants, Flat Management companies are normally used to protect the interests of the leaseholders. In shared properties there are often a number of areas that are common and used by all flat/unit residents. For example, communal halls, access areas and gardens. By having a Flat Management Company you can establish a system for collecting pooled funds in order to maintain and repair any common areas. If the company will not own the freehold for the entire property then it may not be appropriate to have a Flat Management Company.
A residents association may be more suitable. Open a flat managing company online, setting property managers company now.
A Flat Management Company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer the property, which is normally divided into several dwellings, units or flats. When a property is divided into a number of flats, each flat owner has a lease of their own flat but they may also hold shares in a management company that owns the freehold (or lease) of the entire building.
This is to allow the owners of dwellings that share common areas or rights, typically flats, to participate in the running of the common areas or exercising their rights of access. It has special Memorandum and Articles of Association and may require specific clauses within the M&A.
These companies are normally set up on the advice or under the guidance of a solicitor familiar with property law. When ordering such a company, please remember to specify that you require a flat management company and advise us of any specific matters that may need to be included. Flat Management Companies are not available off the shelf. Coddan offers FLAT MANAGEMENT COMPANY FORMATION, UK PROPERTY MANAGEMENT COMPANY REGISTRATION, property company creation London, property management incorporation England, British flat company registration. Glasgow flat management company registrations, Edinburgh flat management company registrar, Oxford company incorporation agent. Liverpool property management company formations. Forming flat companies, incorporating flat company United Kingdom, registering UK property company, setting flat management company, starting property management company, online company registration, incorporate company, registered office service, flat formations, company limited shares, company limited by guarantee.
A property management company set up under the Companies Act to operate for the benefit of residents or tenants rather than being run as a business for profit is generally known as a flat management or property management company. Flat Structure of Management, Flat Management Companies, Leasehold Flats, Flat Business Structure, Companies Operating a Flat Structure.
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Coddan helps you incorporate your business, form a flat management companies or a corporation. Learn about incorporation and how to incorporate your business online! UK management property company formation agent specializing in LLP incorporation, company formation and company registration of UK private limited liability companies, limited liability business and limited by Guarantee Company.
Incorporate or form an LLC (Limited Liability Company) Online. Start a Company by Incorporating or Forming an LLP at Coddan. Incorporate today. Incorporation is easy. Coddan - leading provider of Incorporation and Limited Liability Partnership (LLP) formation services. Coddan offer a range of services for business, including company incorporation, virtual office services, a London mailing address, and company secretarial services, Coddan is a specialist in company incorporation, providing company formation services and name registration. Readymade UK Limited Company Formation & Offshore Companies incorporation service. We provide online new company formations and off the shelf readymade limited companies.
This is our most popular package with UK residents, and includes: Submission of applications that details company's executive officers (£1,000 authorised shared capital, a minimum of one share may be issued) Flat management company formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Share Certificates and company Register
Economy Package
£ 92.00
Renewal fees from £50.00
This is our most popular package with EU residents, and includes: Submission of applications that details company's executive officers (£1,000 authorised shared capital, a minimum of one share may be issued) Property management company registration is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Annual Return and Annual Account reminder The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Share Certificates and company Register
Premier Package
£ 141.95
Renewal fees from £99.95
This is our most popular package with small business, and includes: Submission of applications that details company's executive director (£1,000 authorised shared capital, a minimum of one share may be issued) Flat management company incorporation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees Applicant appointment of director for company (appointed electronically) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee company secretarial service for 12 months (next year - £49.95) Annual Return and Annual Account reminder The following documents will be posted to you (these documents will be sent via Royal Mail): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting Two printed share certificates and Company Register
Deluxe Package
£ 266.95
Renewal fees from £224.95
This is our most popular package with overseas residents, and includes: £1,000 authorised shared capital, a minimum of one share may be issued Property management company formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee company secretary service for 12 months (next year - £49.95) Coddan provides a company nominee director service for 1 year (next year - £125.00) The name of the nominee director & secretary will appear as a public record Annual Return and Annual Account reminder The following two hard bound copies of corporate documents will be posted to you (Note: these documents are sent to you through Royal Mail Service, and are to be completed upon arrival): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting Two printed share certificates and Company Register A pre-signed, undated letter of resignation from the nominee director A General Power of Attorney signed by nominee director An indemnity Letter for General Power of Attorney A nominee service agreement which provides for the indemnification of the nominees
Business Start-Up: Legal Requirements
Company subscribers may be residents outside the UK. You must appoint a minimum of 1 Director. There is no maximum number of Directors. Directors can be corporate bodies or private individuals. A Director can be of any nationality. Directors need not be formally trained. All companies must appoint a company Secretary. Secretaries can be corporate bodies or private individuals. A Secretary can be of any nationality. If there is only ONE Director he or she CANNOT also be the Secretary. A U.K. company must have a minimum of one shareholder who may be a corporate body or an individual. There is no maximum and no minimum share capital. No restrictions on meeting locations. There must be a minimum of one share in issue. The maximum is determined by the share capital as specified. The company is required to have a registered office in the UK.
UK FLAT MANAGEMENT COMPANY INCORPORATION SERVICE. PROPERTY MANAGEMENT COMPANY FORMATION IN THE UNITED KINGDOM
A property management company set up under the Companies Act to operate for the benefit of residents or tenants rather than being run as a business for profit is generally known as a "flat management" or "property management" company. Many types of multi-occupancy development, but particularly residential ones, need such a company and they account for a large number of the companies on the register at Companies House.
A flat management company usually has special Memorandum and Articles of Association drawn up to allow it to own, manage and administer a freehold property, which is normally divided into several dwelling units or flats, with each leaseholder owning a share in the company. The leaseholder is normally obliged to transfer ownership of the share to a new leaseholder if the property is disposed. In cases where there are several tenants flat management companies are sometimes formed to manage and protect the interest of the persons holding leases.
A Flat Management Company is normally incorporated to manage a property or group of properties where there are multiple tenants. Flat management companies often permit lessees of individual plots within the development to acquire an interest in the company, usually being a single share with or without voting rights. As with any other company, a flat management company must appoint directors and a company secretary. As a flat management company will ordinarily be a private company the requirement is for one director and one company secretary. Coddan can register your Flat Management Company within 4-8 working hours. Coddan offer a specialist flat management companies formation package and now provides a complete solution for developers requiring such a company. The package price of £42.00
Suggested Reading
If you want to become familiar with the description and the contents of the British property management companies formation packages, offered by Coddan CPM LTD and to find above, what kind of service is included in this or that UK property management companies incorporation package, to get an idea about the price of annual renewal of the service, and about the general legal requirements to the flat management company registration within Great Britain, please, select the package you need from the list, situated below the banner. The information in the banner will be renewed according to the package you've chosen.
Flat Management Company Formation: All of our Memorandum and Articles of Associations and Partnership Agreements were reviewed and approved by a volunteer U.K. lawyer. Coddan can form your Flat Management Company within 4-8 working hours. If you have any questions about the flat management company incorporation then please E-Mail or call us: 0800 081 1510 or +44 (0) 207 637 3881, fax: +44 20 7681 3318.
The basic document package we provide will not differ significantly from that available at a major corporate law office. We have many ready-made companies (off-the-shelf), which are ready to trade, and can be transferred to you within hours. Click here for our UK Flat Management Company registration costs and full details of our packages for property management companies or call us for free no obligation advice. Compare Prices of Various Forms of Companies: Flat Management Company Registration Packages & Costs
Form a flat management company online in minutes at lawyer-free prices. Coddan was developed by expert attorneys with experience at the most prestigious law firms in the country. We've helped over 50,000 satisfied customers, and our know-how allows us to prepare legal documents quickly and efficiently. Our documents contain advanced provisions that are not found in simple "do-it-yourself" kits or manuals.
Coddan lets you take care of common legal procedures without ever leaving your home or office. Our research area contains plenty of helpful guidance. Simply answer an easy-to-understand questionnaire, and Coddan CPM LTD takes care of the rest - no need to download, no need to print. You will receive the completed legal documents printed on quality acid-free paper. You May Use This Form to Incorporate a New Company: E-Quick Flat Company Incorporation Package - £42.00
A comprehensive and bespoke service for company formations including private companies, public companies, companies limited by guarantee, property management companies, charitable companies and LLPs. The standard service will include:
Advice on the availability of the proposed company name Formation of a company Holding the company's first board meeting Providing the statutory books (written up) Issuing share certificates Filing the appropriate documents at Companies House Providing you with a statement showing the principal details of your company
Please Note: The prices payable for the items that you order are clearly set out in the web site. There will be no contract of any kind between you and us unless and until we receive payment from you. We act as your agent in the incorporation of companies and electronic filing of Companies House forms. We are not able to guarantee that any such filing will be acceptable to Companies House, nor are there any contractual obligation upon us to do so.
If Companies House rejects incorporation or other electronic filing, we will credit your account with a full refund and the contract between us will be made void. Companies House does not offer a cancellation facility for the incorporation of companies or the electronic filing of documents. We will be unable to cancel any such submission on your behalf and will not refund any payment you have made.
All prices shown at Coddan CPM LTD Web Site are in Great British pounds. Credit cards are the preferred method of payment; we accept VISA, MasterCard and Delta. We can accept payment in UK Pounds Sterling, US Dollars, Euros, Australian Dollars and Canadian Dollars. If you do not feel comfortable transmitting your credit card number and other information on the Internet, we suggest you place an order online, choose "Credit Card via Phone" as the payment method, and then phone in to give us your credit card number over the phone. We'll charge your credit card manually. Pre-payment with cashier's check or money order is accepted. We accept wire-transfer from anywhere.
UK Flat Management Company Limited by Shares from only £42.00! Each limited company package includes all statutory paperwork and is fully compliant with company law. All our private UK companies are general trading companies and can be used to conduct any type of business. A Certificate of Incorporation, and the Memorandum and Articles of Association of your property management company will be sent to you upon formation of your company. You can appoint your own directors and secretary BEFORE company incorporation. This is absolutely FREE. Our 4-8 hour online incorporation service enables you to register your company quickly and effortlessly. All government and filing fees are included in the cost of our E-Quick pack. All certificates and documents will be sent directly to you via email immediately following the formation of your company. It will take just 5 minutes to complete the online registration form, then your company could be up and running within 4-8 working hours.
THE E-QUICK PACKAGE CAN BE UPGRADED WITH ANY OF THE FOLLOWING FEATURES:
1. Company Pliers Seal - £20.00. 2. Laminated Hard-copy of the Certificate of Incorporation - £5.95. 3. Laminated Hard-copy of the Certificate of Incorporation, Bound Copies of the Memorandum & Articles, and Combined Company Register - £12.95. 4. Domain Name Registration for two years - £16.00. 5. Provision of a Registered Office Address for 12 months - £50.00. 6. Provision of a Nominee Company Secretary for 12 months - £49.95. 7. Certificate of Good Standing - £35.00. 8. Notarisation & Apostille of Documents.
After you place your order, details about the wire-transfer process will be e-mailed to you on the second e-mail notification. If you missed that e-mail, please call our toll-free number that's given on the order confirmation.
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Dear visitors, while having a chat session with a customer, we are frequently requested to give a piece of advice on tax planning or business structuring. We would like to inform you that it is against our principles to provide online advice pertaining to these issues. The points that may be covered during a session include service description, package or service price, navigation at our website, ways of making an order, methods of payment etc. Yet, if you wish us to provide you with advice on tax or business structuring, you should be aware that this service is chargeable. If you have any questions please E-Mail or call us: 0800 081 1510 or +44 (0) 207 637 3881, fax: +44 20 7681 3318.
INCORPORATE A BRITISH FLAT MANAGEMENT COMPANY. HOW DOES A FLAT MANAGEMENT COMPANY WORK?
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.
WHY HAVE A FLAT MANAGEMENT COMPANY IN ENGLAND?
Flat Management companies are companies used to manage the whole of or parts of a site or building on behalf of its owners. When there are multiple tenants, Flat Management companies are normally used to protect the interests of the leaseholders. In shared properties there are often a number of areas that are common and used by all flat/unit residents.
For example, communal halls, access areas and gardens. By having a Flat Management Company you can establish a system for collecting pooled funds in order to maintain and repair any common areas. If the company will not own the freehold for the entire property then it may not be appropriate to have a Flat Management Company. A residents association may be more suitable.
Many tenants and owners of properties in the UK make contributions to management companies and various service charge funds or sinking funds. These funds pay for a variety of services and sometimes accumulate money for future repairs. Typically, residents of a block of flats will all pay a set amount each year into a fund. That fund will either pay for joint day to day running costs of the block, such as cleaners and minor repairs, or funds will be put aside to pay for future major expenditure such as a roof repair. Some funds may do both within one fund.
The charges may typically be paid to a management company, which could manage just that block of flats or any number of blocks. Sometimes residents of a block will set up their own management company, residents' association or trust to receive the funds and carry out the work. Sometimes the landlord/freeholder holds the funds and organises the work.
Incorporation Packages Available from Coddan: For clients from all over the world Coddan, with different requirements, needs and budget, Coddan offers a series of company formation packages tailored to your needs. Ranging from our E-Quick formation package, which is perfect for those who simply want a fast company formation and are confident enough to do the rest on their own, to our Deluxe Business start up package, which includes a host of additional features designed to organise all the administrative formalities and leave you free to concentrate on your core business.
E-QUICK Flat Management Company Formation Package For Just £42.00 The E-Quick Flat Management Company formation package is our most popular package with UK residents. It is ideal for small to medium businesses that have their own address in the UK, and that have a partner appointed as company secretary. It offers:
Electronic submission and incorporation of your company at Companies House; Certificate of Incorporation; Specially Drafted Memorandum and Articles of Association for Flat (Property) Management Company.
General Advantages of UK Private Limited Companies:
1. Liability is, in the vast majority of cases, strictly limited to the investments made by the shareholders. 2. Company Officers are not personally liable for their actions unless there is a clear and serious breach of their fiduciary duty. 3. Limited companies often benefit from greater prestige than their sole proprietorship or partnership counterparts. The reason is because such an enterprise normally requires more planning and thus is deemed more credible. 4. Limited companies often benefit from significant tax advantages. In fact, many countries around the world give exclusive tax incentives to this type of entity. 5. The rights of shareholders are normally clearly defined and protected. 6. Corporate taxes only become payable after the end of the financial year. This means money that would otherwise be taxed on a monthly or quarterly basis, is available to earn further interest before the final payment of tax. 7. You need only appoint one Director and one Shareholder. 8. Directors can be corporate bodies or private individuals. 9. A Director can be of any nationality. 10. All companies must appoint a company Secretary who can be of any nationality.
All of the documents offered by this package are sent directly to you by email. Order the E-Quick Flat Management Company Formation Package:E-Quick Flat Management Company Formation Package - £42.00 (incorporation, government taxes and government fees are included).
ECONOMY PROPERTY MANAGEMENT COMPANY Registration Package For Just £92.00 The ECONOMY UK Flat Management Company formation package is our most popular package with EU residents, who are intending to help disabled, homeless, orphan child or poor people, to promote religious ideas to the public. It is ideal for smaller companies, such as those being run by a sole director from home who has a partner to act as company secretary, where a registered UK address is required for correspondence between your company and UK authorities (i.e. Companies House and the Inland Revenue). It offers:
Electronic submission and incorporation of your company at Companies House; Certificate of Incorporation; Specially Drafted Memorandum and Articles of Association for Flat (Property) Management Company; Registered UK office address; Forwarding of Official Mail;
All of the documents offered by this package are sent directly to you by email. Order the Economy Flat Management Company Formation Package: Economy Flat Management Company Incorporation Package - £92.00 (incorporation, government taxes and government fees are included).
PREMIER Incorporation Package For Property Management Company For Just £141.95 The PREMIER Flat Management Company incorporation package is our most popular package with small to medium companies. It is ideal for businesses that require a registered office address in London, Birmingham, Manchester, Edinburgh or Glasgow, and that does not want, or cannot find someone, to appoint as a second person in their company. It offers:
Electronic submission and incorporation of your company at Companies House; Certificate of Incorporation; Specially Drafted Memorandum and Articles of Association for Flat (Property) Management Company; Registered UK office address; Forwarding of Official Mail; Nominee Secretary Service.
Upon the formation of your company, the following documents will be sent to you: a laminated copy of the Certificate of Incorporation of your company, a hard bound copy of the Memorandum and Articles of Association of your Property Management Company, a hard bound copy of the Minutes of the First Meeting of the Directors, a company register. Order the Premier Flat Management Company Formation Package: Premier Flat Management Company Registration Package - £141.95 (incorporation, government taxes and government fees are included).
DELUXE Business Start Up Package For Just £266.95 The DELUXE business start-up package is our most popular package with international customers. It is designed to allow our clients to retain anonymity for legitimate reasons. It offers:
Electronic submission and incorporation of your company at Companies House; Certificate of Incorporation; Specially Drafted Memorandum and Articles of Association for Flat (Property) Management Company; Registered UK office address; Forwarding of Official Mail; Nominee Secretary Service; Nominee Director Service; Power of Attorney.
Upon the formation of your company, the following documents will be sent to you: two laminated copies of the Certificate of Incorporation of your company, two hard bound copies of the Memorandum and Articles of Association of your Flat Management Company, two hard copies of the Minutes of the First Meeting of the Directors, a company register. Order the Deluxe Flat Management Company Formation Package: Deluxe Flat Management Company Start Up Package - £266.95 (incorporation, government taxes and government fees are included).
INCORPORATE A FLAT MANAGEMENT COMPANY OUTSIDE OF UK. PROPERTY MANAGEMENT COMPANIES IN USA AND OFFSHORE
We can provide tailor-made or ready-made property management companies with suitable Memorandum and Articles for all these circumstances. Every draft provides for the automatic transfer of membership when dwelling or unit holders change. If required we can also provide weighted voting rights in favour of any developers to allow them to retain effective control of the company until every flat or unit is sold.
You may incorporate your property management company offshore with us online! It can be advantageous to buy property through an offshore company. A foreign domiciled person buying property in the United Kingdom should do so through an offshore company for inheritance and capital gains tax protection.
The ownership of overseas real estate and land by an offshore company can often create many tax advantages. Additionally, using a trust or a Panama Private Foundation to own the shares in the offshore company can give rise to additional tax advantages in the client’s country of residence and simplifies procedures in the event of the client's death.
The main benefits are: Avoidance in most cases of local inheritance taxes on the property in the event of death of the beneficial owner. Avoidance in most cases of local succession laws which can, in certain countries, stipulate to whom the property must pass. Elimination in most cases of local transfer and capital gains taxes upon resale of the property. Simplification of procedure upon resale of the property through the sale of the real estate holding company to the buyer saving both time and costs.
Exclusion of foreign exchange controls restrictions, in certain countries, in the event of the beneficial owner taking up residence in the property. Ease of transfer to heirs in the event of the beneficial owner's death. Confidentiality of ownership.
After advising on and establishing the structure appropriate to each client's requirements, the Coddan provides all necessary services to ensure that each offshore company is professionally maintained. These include the provision of directors, secretary, registered office and nominee shareholders, the holding of statutory meetings and the filing of statutory returns.
Coddan recognises its responsibilities for managed companies, and ensures that, when required, information is speedily communicated to clients; legal representation is readily available; and all audit requirements are met. You May Use This Form to Incorporate a New Flat Management Company in Tax-Havens: Offshore Flat Company Incorporation Package - £325.00
Want to incorporate a flat management company in Delaware, Florida, New York, Nevada or elsewhere? Coddan provides incorporation and LLC formation services throughout the US. We provide everything you need to know about the advantages of Delaware, Nevada, Florida or New York Corporations and LLCs, including an online checklist to walk you through the incorporating process step by step; Big resource section filled with sample corporate and LLC resolutions, forms, and links; Also lots of tips on how to ensure the success of your new corporation or LLC.
The LLC is the preferred entity to own real estate, equipment, boats and airplanes. Many creative estate planning strategies have been developed to utilize Nevada corporations. Estate plans where trusts have traditionally been used can often be restructured more effectively using Nevada corporations. Nevada corporations are generally more flexible and creative when passing estates to heirs than trusts are, while providing similar benefits such as avoiding probate, and potentially eliminating all estate taxes. You May Use This Form to Register a New Flat Management Company in the USA: U.S.A. Flat Company Incorporation Package - £174.00
The Constitution of a Flat Management Company: A Flat Management Company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer the property, which is normally divided into several dwellings, units or flats. When a property is divided into a number of flats, each flat owner has a lease of their own flat but they may also hold shares in a management company that owns the freehold (or lease) of the entire building.
Transfer of Shares - Change of Ownership: As shareholders, the flat owners have their say in running the limited company. Normally, the company's constitution will say 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. However, it remains a separate legal entity regardless of who holds its shares from time to time.
UK Flat Management Companies - Service Charge Funds & Sinking Funds: Background: Many tenants and owners of properties in the UK make contributions to management companies and various service charge funds or sinking funds. These funds pay for a variety of services and sometimes accumulate money for future repairs. Typically, residents of a block of flats will all pay a set amount each year into a fund. That fund will either pay for joint day to day running costs of the block, such as cleaners and minor repairs, or funds will be put aside to pay for future major expenditure such as a roof repair. Some funds may do both within one fund.
The charges may typically be paid to a management company, which could manage just that block of flats or any number of blocks. Sometimes residents of a block will set up their own management company, residents' association or trust to receive the funds and carry out the work. Sometimes the landlord/freeholder holds the funds and organises the work.
Property Management Companies - Funds Created: Typically there are two main types of fund to which Section 42 LTA 1987 applies. Sinking Funds involve the long term setting aside of funds for major repairs and renewals. Over a period, the fund can grow to a significant size and generate substantial investment income. Service Charge Funds are funds where the intention is to cover only the routine day-to-day costs of maintaining the communal areas and paying for minor repairs and decorations.
The service charges are reviewed annually and set at a level to balance the actual expenditure and leave a 'no surplus - no deficit' situation at the end of each year. In practise there may be a small amount held in reserve or carried over from the previous year. The trust will not accumulate any surplus charges or create any sort of contingency or sinking fund. Any investment income is derived only from the short- term deposit of temporarily surplus funds. Some trusts will act both as a sinking fund and as a service charge fund, although usually the trustees would keep the two funds separate.
There are a number of different situations in which sinking funds or service charge funds may be created. Not all of these will necessarily fall within the scope of Section 42 LTA 1987.
Flat Management Companies - Tenants of Rented Property: Under the terms of a rental contract either the tenant or the landlord will be responsible for repairing the property. If the landlord includes in the rent payable some figure to cover his repairing obligations the fact that the payment by the tenant will be part of his rent will not preclude the operation of Section 42 LTA 1987. However, in order to fall within the definition of 'service charge' the amount must be variable according to the costs or estimated costs of repairs etc.
So if the lease simply states that part of the rents payable will be used for servicing, repairs and maintenance etc. for which the landlord is then responsible then the matter is outside Section 42 LTA 1987 because the payments by the tenants do not amount to a 'service charge' as defined in Section 18 LTA 1985. The whole of the rent will be Schedule A income of the landlord.
Flat Management Companies - Leaseholder Owners of Property: Under the terms of the lease the leaseholder may have to pay into a service charge fund or sinking fund. The funds may be paid to an individual, a company, a trust or an unincorporated association. As the owner owns the property under a lease, the LTA 1987 will apply. If the lease specifies contributions are to be made to a service charge fund or sinking fund then an accumulation trust exists whether the funds are paid to an individual, a company, a trust or an unincorporated association.
The body holding the funds may not consider themselves to be trustees, for example a company. However if Section 42 LTA 1987 applies then the company will be holding the funds as a trustee.
If the lease stipulates that tenants must pay a service charge for particular services to a service company which is not the landlord, connected with the landlord or stipulated by the landlord, this too is within Section 42 LTA 1987. In that Section 'the payee' is defined as 'the landlord or other person to whom any such charges are payable by those tenants under the terms of their leases'. If the lease states that the tenants should arrange for services, repairs and maintenance etc. themselves but does not specify how this should be done, any arrangement made by the tenants with a service company is outside the scope of Section 42 LTA 1987. The costs in respect of service charges are not made either to the landlord or to another person to whom such charges are payable under the terms of the lease.
Finally where there is no provision in the lease for the tenants to pay into a service charge fund, but nevertheless they decide to create one, then such an arrangement is not within Section 42 LTA 1987 as the tenants are not 'required under the terms of their leases to contribute to the same costs by the payment of service charges'.
British Management Companies - Freehold Owners of Property: Under the terms of sale of a freehold property (a covenant of some sort) the freeholders may have to pay into a service charge fund or sinking fund. The funds may be paid to an individual, a company, a trust or an unincorporated association. Such an arrangement does not come within Section 42 LTA 1987 as it is not under the terms of a lease. Alternatively there may be no provision to create a service charge fund or sinking fund but the freeholders together decide to form one.
They may decide to pay those contributions to an individual, a company, a trust or an unincorporated association. Again this is a private arrangement not governed by Section 42 LTA 1987 and the tax treatment depends on what the freeholders decide is going to hold the funds.
Flat Management Companies - Registered Social Landlords & Other 'Exempt Landlords: Registered Social Landlords (RSLs) are, in England and Wales, independent, private sector, non-profit making bodies whose main purpose is to provide decent quality, affordable housing for people on low incomes. About three-quarters of them are charities. Section 42 LTA 1987 does not apply to tenants of 'exempt landlords' (Section 42(1) LTA 1987). In accordance with Section 58(1)(g) LTA 1987 a RSL is an exempt landlord. There are other exempt landlords defined in Section 58(1)&(1A) LTA 1987 such as district councils and certain development corporations. See TSEM5745 where Section 58(1)&(1A) LTA 1987 is reproduced.
Whilst Section 42 LTA 1987 does not apply to RSLs and other exempt landlords, as explained below, the terms under which sinking funds and/or service charge funds are held by exempt landlords may still create a trust. Thus, in summary, reference must be made to the terms of the lease to determine the application of Section 42 LTA 1987. A statutory trust will arise where the tenants of two or more dwellings are required under the terms of their leases to contribute to the payment of variable service charges to the landlord or other persons to whom such charges are payable under the terms of the leases. However, Section 42 LTA 1987 does not apply where the landlord is an 'exempt landlord'.
Flat Management Companies - Funds Not Within S42 LTA 1987: Where a fund exists but it is not within Section 42 LTA 1987, for example where freehold owners of property decide to create a sinking fund, or because the landlord is an RSL or other 'exempt landlord', then the treatment of that fund will depend on what structure is used. An individual holds the funds. The individual could be an employee, trading as a maintenance contractor or could hold funds as trustee for the freeholders. If the latter then the sort of trust depends on the terms of the trust, not on Section 42 LTA 1987.
A company holds the funds. Assuming the company was formed to hold funds for the freeholders who created it, then it could hold the funds as trustee. Alternatively it could trade as a flat management company receiving payments under a contractual arrangement to supply services and pay corporation tax. The status of the fund will depend on the terms under which the payments are made and the terms under which the company holds the funds.
A trust holds the funds. It could be any sort of trust depending on the terms of the deed but it would not be within Section 42 LTA 1987. An unincorporated association holds the funds. This could, for example. be a residents' association. It would be liable to corporation tax unless it was acting as a trustee. Again any trust would not be within Section 42 LTA 1987. Any funds that the trustees held would be subject to the normal trust rules. It is possible for the funds to be held under a bare trust, interest in possession trust, discretionary trust or accumulation trust arrangement. The exact status will depend on the terms and nature of the trust agreement.
Flat Management Companies - Investment Income Previously Charged to Corporation Tax: In the past some flat management companies have been permitted to make returns in respect of investment income, arising on service charge funds and sinking funds, as part of their corporation tax returns (see PIM1070). That is no longer appropriate where trustees are holding funds as trustees under Section 42 LTA 1987. Likewise where Section 42 LTA 1987 does not apply but the terms under which the funds are held creates a trust.
Rents receivable by flat management companies (such as ground rents - other than peppercorn rents) are outside the scope of Section 42 LTA 1987 and remain chargeable under Schedule A. Tax Bulletin Issue 37 (October 1998) explained the approach the Inland Revenue will take for all flat management companies as from 1 April 1998. However, because of the need to issue further guidance in Tax Bulletin Issue 48 (August 2000), no action will ordinarily be taken to disturb any year or Accounting Period for which a Corporation Tax return has already been made and accepted. Where a trust return has not previously been made by a flat management company, or a trustee, of investment income arising from a fund within Section 42 LTA 1987 (or from funds otherwise specifically held on trust), the trustees will have the normal obligation to notify chargeability.
Flat Management Companies - Notification From Company's Tax Office: Where you receive a notification from a tax office dealing with the company's corporation tax, that a flat management company trust has been identified, you should set up a new record, and issue any trust SA returns, which are required. The company tax office will advise you as to the date from which trust liability first arises, and this can be from any date in the tax year. If for example the CTSA return covers the accounting period to 31st August 1999, the first period of trust SA liability will be the part year from 1 September 1999 to 5 April 2000.
The Characteristics of Flat Management Companies: The establishment of those flat management companies in the study had generally been instigated by developers. Rights conferred by the Landlord and Tenant Act 1987, enabling long leaseholders to collectively purchase their freehold, seemed to have had little direct impact. The majority of companies were limited by share, although some blocks favoured limitation by guarantee. Shares offer certain advantages in relation to the financial liability of members, but a key disadvantage is the occasional losing track of ownership as shares must be transferred when a flat is sold but this is sometimes overlooked. 84% of companies in the study had been incorporated since 1970 and 54% since 1980. However, there was a sharp fall in incorporations since the late 1980s.
The buildings concerned were predominately modern. Over half dated from 1961, and two-thirds were purpose-built. Of the 32% which managed converted houses, the large majority (94%) comprised small units of 2-10 flats. The average rate of owner-occupation was 85%, with some 12% of flats sub-let and 2% unoccupied. These proportions were not greatly affected by type, size or age of block. Small and medium-sized conversions had the highest rates of sub-letting and non-occupancy. The large majority (82%) of companies had a membership rate of 100%, reflecting a policy of membership linked to flat ownership.
Management Quality: One of the main benefits identified by all residents was the ability to achieve the best value-for-money management and maintenance, through the payment of acceptable service charges. Directors also valued control over how and when works were carried out, such as whether to appoint contractors or to undertake work themselves. However, there was a general lack of planning for management and maintenance, especially in older blocks (particularly those built before 1914). Nearly half had no formal planning, and this increased to 62% in small blocks of 2-10 units.
The amount and length of forward planning increased with the size of the block. Just under 75% of flat management companies had a reserve fund and 30% had a fund of £1,001-£5,000. This also increased with block size. Service charge arrears were a problem in some blocks and 10% of respondents reported quite severe problems, with over 30% of resident members in arrears. This tended to increase with size of block and was worse where a managing agent was employed. Some managing agents mentioned particular problems with arrears in recent years during the economic recession. Several resident directors said they had come to special arrangements with residents who were in financial difficulty and felt there was a greater effort to pay when neighbours knew about arrears.
Ownership of The Freehold: Fifty-four per cent of companies owned the freehold; this was more common in converted houses and more recent developments and, most particularly, in smaller blocks of 2-10 units, where the figure was 62%. Directors regarded freehold ownership as important where they perceived it would increase their ability to control management. This was usually where the freeholder was unco-operative or where the conditions in leases were unclear. Where the company already had strong powers to enforce regulations, directors did not feel freehold ownership had a significant impact on management.
However, it was still considered important because of the 'wasting asset' problem (as the length of occupation left under the lease reduces annually). Many resident directors expressed a lack of knowledge about rights to purchase the freehold.
Managing Agents: Twenty-two per cent of respondent companies employed a professional managing agent. Managing agents and estate agents met with criticism and were judged to give poor professional advice. Information to potential flat purchasers was particularly lacking and the presence of a flat management company was not a factor most purchasers considered explicitly when choosing their first flat. Although the degree of planning was higher with a managing agent, often management quality was no better with an agent than without.
There was often also confusion over the role and responsibilities of the managing agent, especially those playing a 'dual role': for example, where the managing agent is appointed by an absentee landlord but is effectively paid by the leaseholders, or where the managing agent has become company secretary to the flat management company or has acquired the freehold of the block. Residents were more likely to express dissatisfaction where the managing agent was fulfilling more than one role.
A Management Code For Residential Properties: Several managing agents said that they would welcome a Code of Practice which set standards against which management quality could be measured and to help them explain to clients about work that often takes place behind the scenes. Both resident directors and managing agents felt there was a need for workable sanctions against poor managing agents, and for the maintenance of some flexibility towards achieving management objectives.
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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. 
We can provide tailor-made or ready-made property management companies with suitable Memorandum and Articles for all these circumstances. Every draft provides for the automatic transfer of membership when dwelling or unit holders change. If required we can also provide weighted voting rights in favour of any developers to allow them to retain effective control of the company until every flat or unit is sold. 
