What is a flat 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 involved. 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 hold shares in a management company that owns the freehold (or lease) of the entire building. 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. A limited company would also be set up to own and manage the common parts of a development made up of separate units under common hold. This type of company is called a common hold association. 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. These costs are funded by the individual flat owners, who make periodic contributions into a pooled fund.
A guarantee company provides a clear legal identity. This provides the ability for the company to own property in its own name and a democratic structure where its participants are required to adhere to the strict laws and regulations governing limited companies generally.
If you want to become familiar with the description and the contents of UK guarantee companies formation packages, offered by Coddan CPM LTD and to find above, what kind of service is included in this or that UK non-profit companies registration package, to get an idea about the price of annual renewal of the service, and about the general legal requirements to the guarantee company incorporation within United Kingdom, 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. The basic document package we provide will not differ significantly from that available at a major corporate law office.
Coddan UK property management company formation agent, we help with whether you are a professional flat management company incorporation agent, starting business online, English property managing corporation formations agent, for whom hold property limited company creation is a frequent activity or an individual ordering your first managing flat property British company registration.
We are providing holding company set-up. We offer online flat management companies incorporation London, setting business corporation United Kingdom, starting-up company Ireland, British and English LTD registrations services. Check company establishment costs, Irish company, LTD incorporation Scotland, Scottish, Edinburgh, Glasgow, company organization package. Provides London virtual office, Oxford, Piccadilly, mail-forwarding. Learn about forming company benefits, incorporating company advantages. Starting limited company UK company incorporator agent. Registering limited company, setting branch office - Coddan provides subsidiary company registrations, United Kingdom companies incorporator, firm law registration, holding company, real-estate, flat management company, incorporate Nevada, Texas, starting a business.
Nominee company secretary, nominee director service, shareholders agreement, nominee shareholder. Dublin and Belfast company set-up.
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 companies books. Less formal arrangements, such as collecting the money through a residents association, may be satisfactory. The company could then continue to own the freehold (or head lease) of the property, but all its accounting transactions would be conducted elsewhere - the company would then be dormant. Accounts would still have to be prepared, presented to members, and delivered to Companies House, but all that would mean is a simple nil balance sheet that does not have to be audited.
The prime purpose of limited companies is to limit the liabilities of entrepreneurs who use them for business purposes. In exchange for this limited liability, companies are required to make certain information about themselves available to the public. This information is filed at Companies House. The timing and presentation of the information is governed by law. Flat management companies, although mostly formed for a different purpose, are governed by the same legislation - primarily, the Companies Act 1985. It does not allow flat management companies to be treated any differently to other companies. Managing the business of the company is the responsibility of its officers. Legally, all companies must have: at least one director (unless the company is a plc); and a company secretary.
A sole director cannot also be the company secretary. There must be two officers. The directors and secretary manage the company on behalf of the members. Among other things, they are responsible for holding meetings and ensuring that all the necessary returns, accounts and other documents reach Companies House by the due date.
This is our most popular package with UK residents, and includes: The submission of forms detailing your company's executive officers The registration of your £1,000 authorised share capital (a minimum of one share must be issued) 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
£ 82.00
Annual Maintenance Fee £50.00
This is our most popular package with EU residents, and includes: The submission of forms detailing your company's executive officers The registration of your £1,000 authorised share capital (a minimum of one share must be issued) 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
£ 131.95
Annual Maintenance Fee £99.95
This is our most popular package with small business, and includes: The submission of forms detailing your company's executive director The registration of your £1,000 authorised share capital (a minimum of one share must be issued) 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 secretary 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
£ 256.95
Annual Maintenance Fee £224.95
This is our most popular package with overseas residents, and includes: The filing and registration of your company in England The registration of your £1,000 authorized share capital (a minimum of one share must be issued) 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 secretarial 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 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 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
Name Protection
£ 22.00
Annual Maintenance Fee £60.00
The purpose of this package: This package allows you to register a company name with Companies House and thus prevent this name being used to form a company by anyone else This package includes: The registration of a non-trading limited company with your choice of name Payment of UK legal and initiation fees A nominee director A nominee secretary A nominee shareholder A registered office address Management of the company: Coddan will file the annual return and dormant company accounts on your behalf for an annual fee of £60.00 If you do not wish to renew the management option at the end of term, the company will be dissolved
Business Start-Up: Legal Requirements
Company subscribers may be residents outside the UK You must appoint a minimum of ONE 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 company must have a minimum of one shareholder who may be a corporate body or an individual No minimum paid up share capital A minimum of one share may be issued Capital may be denominated in any currency Shareholders and directors meetings may take place outside Great Britain The company is required to have a registered office in the UK
All companies must have officers. This means at least one director and a company secretary for a private limited company, and at least two directors and a company secretary for a public limited company. The director, or directors, must manage the company's affairs in accordance with its articles of association and the law. Certain responsibilities apply to all directors, whether executive or non-executive, and to all types of company whether trading or not. The company secretary is the chief administrator of the company.
DO I REALLY NEED A LIMITED COMPANY?
The majority of businesses are not companies. The reasons for having a limited liability company are varied, for example, it could involve ownership of property, obtaining investment funds, taxation or contractual relationships. The key point to recognise is that a company is a separate entity. This means that it is a legal person in its own right. It is separate from those who own or run it, and has "limited liability".
Important Links
Coddan is one of the foremost and most economical providers of limited companies formation and new business entity registration services in the UK. Coddan is a leading company set-up agent that has expertise in off the shelf companies, ready-made companies, own name company formation as well as company search, credit checking, company secretarial, accounting and bookkeeping, tax advice & charity registration. Simple cost effective limited company set-up. No paper forms to complete, all information provided electronically. Coddan offer a range of services for business, including business company set-up, virtual office services, mailing address, and company secretarial services.
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WHAT DOES LIMITED LIABILITY MEAN?
Limited liability gives the owners of the company (its shareholders) protection if the company fails. This means that if a company is put into liquidation, the people who own the company will only be required to pay what they have already paid or agreed to pay towards settling its debts.
HOW DO I SET UP A LIMITED COMPANY?
If you decide, that a limited company is the best thing for your new business, you can buy a ready made / off the shelf company from Coddan or have one tailor made.
CAN ANYONE BE A DIRECTOR?
Generally it is up to the members to appoint the people they believe will run the company well on their behalf. The only restrictions that prevent anyone becoming a director are:
The person must not have been disqualified by a court from acting as a company director (unless he or she has been given leave (permission) to act by a court for a particular company). The person must not be an undischarged bankrupt (except with leave of the court). In Scotland, anybody under the age of 16; and for a PLC or their subsidiaries, anybody over the age of 70 unless specifically approved by a general meeting of the company.
WHAT RESPONSIBILITIES DOES A DIRECTOR HAVE TOWARDS COMPANIES HOUSE?
Every company director has a personal responsibility to ensure that statutory documents are delivered to the Registrar as and when required by the Act. In particular: Accounts (only for limited companies). Annual returns (Form 363). Notice of change of directors or secretaries or in their particulars (Forms 288a/b/c); and Notice of change of registered office (Form 287).
WHAT HAPPENS IF ACCOUNTS OR ANNUAL RETURNS ARE NOT FILED?
All the directors of the company could be prosecuted. Failure to deliver documents on time is a criminal offence. On conviction, a director could end up with a criminal record and a fine of up to £ 5,000 for each offence. Alternatively, if the Registrar believes that the company is no longer carrying on business or in operation, he could strike it off the register and dissolve it. If this happens all the assets of the company, including its bank account and property, generally become the property of the Crown. The company can only be restored to the register and continue in existence by means of a court order.
ARE DIRECTORS REALLY PROSECUTED?
Yes. On average more than 1,000 directors are prosecuted each year for failing to deliver accounts and returns to the Registrar on time. Persistent failure to deliver statutory documents on time may also lead to a director being disqualified from taking part in the management of a company, for a specified period.
WHAT HAPPENS IF ACCOUNTS ARE DELIVERED LATE?
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.
As a director of a private limited company, you normally have a maximum of 10 months from the accounting reference date in which to deliver your company's accounts to the Registrar. The accounting reference date is the date to which your accounts must be prepared. As a director of a public limited company, you normally have a maximum of 7 months from the accounting reference date in which to deliver your company's accounts to the Registrar.
Important note if your company's first accounts cover a period of more than 12 months, they must reach Companies House within 22 months of the date of incorporation for private companies and 19 months for public companies. If accounts are received late, the company will automatically be charged a "late filing penalty".
HOW CAN PROSECUTION AND PENALTIES BE AVOIDED?
Make sure your company complies on time with all its filing obligations, not only in connection with its accounts and annual returns, but in connection with all other documents required under the Act.
ISN'T MY ACCOUNTANT SUPPOSED TO DO ALL THIS?
Your accountant's responsibilities depend on the agreement you have with him or her. However, the responsibility to deliver accounts and other statutory documents rests entirely with the directors. Ensure that your accountants have all the necessary information to prepare your accounts and get them audited on time.
WHY DOES COMPANIES HOUSE NEED THIS INFORMATION?
In exchange for the benefits of trading with limited liability, companies must deliver certain information about themselves to the Registrar. He must then make this information available for inspection by the public so that they can make informed decisions about companies that they may wish to invest in or do business with.
DOES EVERY COMPANY NEED A SECRETARY?
Yes. Section 283 (1) of the Act says every company must have a secretary. Section 283 (2) states that a sole director cannot also be the secretary.
WHAT ARE THE DUTIES OF A COMPANY SECRETARY?
They are not specified by the Act, but are usually contained in an employment contract.
SPECIAL DUTIES
As the secretary is an officer of the company under section 744 of the Act, they may be criminally liable for defaults committed by the company. For example failure to file - in the time allowed - any change in the details of the company's directors and secretary, and the company's annual return.
The secretary may also have to make out a statement of the company's affairs if an administrative receiver or a provisional liquidator is appointed, or if a winding-up order is made. (Sections 47 (Section 66 for Scotland) and 131 of the Insolvency Act 1986).
OTHER DUTIES
The company secretary usually undertakes the following duties: Maintaining the statutory registers. These are:
The register of members (section 352). The register of directors and secretaries (section 288). The register of directors' interests (section 325). The register of charges (section 407 or 422 for Scottish companies). For public companies only, the register of interests in shares (section 211).
Ensuring that statutory forms are filed promptly. You cannot simply send a letter to notify the Registrar that you wish to change the situation of the company's registered office or that changes have occurred among directors or secretaries or their particulars. You should normally use forms 287 and 288a, b or c as appropriate. You may also use the annual return Form 363s in some circumstances if the return is due at the convenient time. Changes of directors' and secretaries' details must be notified within 14 days. There are many other forms that need to be delivered to the Registrar.
Providing members and auditors with notice of meetings. You must give them 21 days written notice of an annual general meeting. You must give them 14 days written notice of a meeting, which is neither an annual general meeting or a meeting to pass a special resolution. If you are the secretary of an unlimited company, the written notice required is 7 days.
Supplying a copy of the accounts to every member of the company, every debenture holder and every person who is entitled to receive notice of general meetings - also copies demanded by anyone under section 239 of the Act. You must send accounts at least 21 days before a meeting at which they are to be laid - see section 238 of the Act.
Keeping, or arranging for the keeping, of minutes of directors' meetings and general meetings.
Ensuring that people entitled to do so, can inspect company records. For example, members of the company and members of the public are entitled to a copy of the company's register of members, and members of the company are entitled to inspect the minutes of its general meetings and to have copies of these minutes.
Custody and use of the company seal. Companies no longer need to have a company seal but if they do, the secretary is usually responsible for its custody and use.
DOES A COMPANY SECRETARY HAVE ANY POWERS?
No, but the Act allows them to sign the following re-registration applications:
The re-registration of a limited company as unlimited - section 49 (4) of the Act. The re-registration of an unlimited company as limited - section 51 (4). The re-registration of a public company as a private company - section 53 (1)(b); and the re-registration of a private company as a public company - section 43 (3).
WHAT RIGHTS DOES A COMPANY SECRETARY HAVE?
They depend on the terms of his or her contract with the company. The secretary has no special rights under the Act.
WHAT YOU HAVE TO SEND TO COMPANIES HOUSE
Company directors and secretaries are responsible for delivering information to the Registrar. There are over 200 forms that companies could file. All limited companies, whether trading or not, must keep accounting records and file accounts for each accounting period with the Registrar. Directors are personally responsible for ensuring that accounts are prepared and delivered to Companies House. Failure to do so may result in a criminal conviction and record for the director[s] and will result in financial penalties for the company.
An annual return is a snapshot of general information about a company giving details of its directors and secretary, registered office address, shareholders and share capital. Please note that annual returns are quite separate from annual accounts. Copies of any special or extraordinary resolutions and certain types of ordinary resolutions, need to be sent to Companies House within 15 days of them being passed by the company.
Guidance & FAQs
FAQs: Administration & Management
£ 32.00
This is our most popular package with UK residents, and includes:
The submission of forms detailing your company's executive officers
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