Options for incorporation

There are seven corporate vehicles commonly used by organisations with a social/environmental mission:

1. Company limited by shares (CLS) or
2. Company limited by shares community interest company (CLS CIC) 
3. Company limited by guarantee (CLG) or
4. Company limited by guarantee community interest company (CLG CIC)
5. Community benefit society (also known as ‘society for the benefit of the community’ or ‘bencom’).
6. Co-operative society (also known as ‘bona fide co-operative’).
7. Limited liability partnership (LLP)

The charitable incorporated organisation (CIO) is a new form of corporate vehicle for charities.  It is not yet available (and not expected to be available until Spring 2010 at the earliest) and therefore not covered in this guidance.

The CIO will be very similar to a company limited by guarantee (CLG) with charitable status but it will only be necessary to register with the Charity Commission rather than both the Charity Commission and Companies House.