Articles Of Incorporation Of A Non Stock Corporation Template for England and Wales

Generate a bespoke document

What is a Articles Of Incorporation Of A Non Stock Corporation?

A non-stock corporation in England and Wales takes the form of a company limited by guarantee. It has members rather than shareholders, making it ideal for charities, trade associations, and membership bodies. Incorporated under the Companies Act 2006, it offers limited liability without share capital. This template helps you draft articles appropriate for a guarantee company.

Frequently Asked Questions

What is the English equivalent of a non-stock corporation?

A company limited by guarantee is the closest equivalent in England and Wales. It has members rather than shareholders, with each member guaranteeing a nominal sum (usually £1) in the event of winding up. This structure is used for charities, associations, and membership organisations.

Does a company limited by guarantee need to register at Companies House?

Yes. A company limited by guarantee is incorporated by filing form IN01, a memorandum of association, and articles of association with Companies House. Once incorporated, it must file annual accounts and a confirmation statement each year.

Can a company limited by guarantee also be a registered charity in England and Wales?

Yes, and this is the most common structure for larger charities in England and Wales. Charitable companies limited by guarantee must register with both Companies House and the Charity Commission, and their articles must include specific charitable purpose and dissolution clauses required by the Commission.

How are members of a company limited by guarantee different from shareholders?

Members of a guarantee company do not hold shares and have no ownership stake. Their liability is limited to their guarantee amount (typically £1). Members vote at general meetings but do not receive dividends or share in the assets if the company is wound up.

Can a company limited by guarantee in England and Wales generate profit?

Yes, it can generate surpluses. However, a company limited by guarantee cannot distribute profits to its members. Any surplus must be reinvested in furtherance of the company's objects. This is a key distinction from share companies.

What dissolution clause is required in a charitable company limited by guarantee?

The Charity Commission requires the articles to include a clause stating that on dissolution, any remaining assets after payment of debts must be transferred to another registered charity with similar purposes. This prevents assets from being distributed to members.

What are the annual filing obligations for a company limited by guarantee?

Guarantee companies must file a confirmation statement and annual accounts (full accounts or small company accounts, depending on size) with Companies House. Charitable guarantee companies must also file an annual return and accounts with the Charity Commission.

Can a company limited by guarantee in England and Wales have paid employees?

Yes. Guarantee companies, including charities, can employ staff. They must operate PAYE, pay employer National Insurance, and comply with auto-enrolment pension obligations. Directors of charitable companies can be paid only if the articles expressly permit it.

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

Swetha Meenal profile photo

A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England and Wales

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Articles Of Incorporation Of A Non Stock Corporation

When you're forming a non-profit organization in the United States, the Articles of Incorporation of a Non-Stock Corporation serve as your organization's birth certificate. This foundational legal document creates your corporation's legal existence and establishes its framework for operations, governance, and tax-exempt status eligibility under federal and state law.

When do you need this document?

You need Articles of Incorporation whenever you're establishing a charitable organization, religious institution, educational foundation, or other non-profit entity. This document is mandatory before your organization can legally operate, open bank accounts, hire employees, or apply for federal tax-exempt status under Internal Revenue Code Section 501(c). Many grant-making organizations and donors also require proof of incorporation before providing funding. Additionally, you'll need these articles when converting an existing unincorporated association into a formal non-profit corporation or when establishing a subsidiary non-profit organization.

Key legal considerations

Your Articles of Incorporation must include specific clauses to ensure compliance and protect your organization's interests. The purpose clause should be broad enough to encompass your intended activities while meeting IRS requirements for tax exemption. Include dissolution provisions that direct assets to other tax-exempt organizations, as required by federal tax law. Consider limitations on political activities and private benefit restrictions that affect tax-exempt status. The membership structure provision determines whether your organization will have voting members or operate under a board-only model. Director provisions should establish minimum and maximum board sizes, while the registered agent clause ensures proper legal notice delivery. Include conflict of interest policies and operational limitations that demonstrate your organization's charitable intent.

Legal requirements in United States

Each state maintains specific requirements for non-stock corporation formation under their respective Non-Profit Corporation Acts. Most states require articles to include the organization's name with appropriate designators like "Inc." or "Corporation," a registered office address within the state, and a registered agent for legal service. The corporate purpose must align with recognized charitable, educational, religious, or other exempt purposes under state law. Many states mandate specific language regarding asset distribution upon dissolution and prohibitions against private benefit. Filing fees typically range from $25 to $100, and some states require publication in local newspapers. Federal requirements include compliance with IRS regulations for organizations seeking 501(c) status, including operational tests and organizational requirements. State charitable solicitation laws may impose additional registration requirements for organizations planning to fundraise across state lines.

Genie's Security Promise

Genie is the safest place to draft. Here's how we prioritise your privacy and security.

Your data is private:

We do not train on your data; Genie's AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it