Legal Structures Guide

This guide is for people setting up a new voluntary or community group, and for established groups reviewing their status. It outlines key considerations and steps but is not specific legal advice. For legal advice, consult an appropriate source.

Types of Legal Structures:

Unincorporated Organisations: A collection of individuals working together.

Examples: Association, Charitable Association, Charitable Trust, Friendly Societies.

Incorporated Organisations: A separate legal entity from its members.

Examples: Company Limited by Guarantee, Community Benefit Societies, Community Interest Companies, Charitable Incorporated Organisation.
Before You Start:

Research and network to see if similar groups exist and if there is evidence of need.

Unincorporated vs. Incorporated

Unincorporated:

Liability: Unlimited personal liability (joint & several).
Property: Owned by individuals.
Law: No governing law (unless a charity).
Accountability: No real accountability (unless a charity).
Costs: No automatic setup/running costs. 

Incorporated:

Liability: Limited personal liability (usually £1).
Property: Owned by the organisation.
Law: Clear statutory framework (with penalties for non-compliance).
Accountability: Clear accountability to members/shareholders and a regulatory body.
Costs: Setup and ongoing costs (e.g., filing fees).