A flat management company — or property management company — is any company set up under the Companies Act to operate for the benefit of residents (or tenants), rather than run as a business for profit. It is also sometimes called a right to manage company, where residents can jointly run a property (for example, a block of flats).
A flat management company can be
registered as a company
limited by shares or a company limited by guarantee. Both of the company types offer limited liability for its members, subject to the company trading properly in line with insolvency legislation.
Should I choose limited by shares or limited by guarantee for my flat management company?
The main advantage of using a guarantee company is that no stamped (or stamp exempt) transfer is needed for changing members (on sale of the related lease). The articles simply allow for the membership of the outgoing member to terminate automatically. There is no need for any document to be signed by the member giving up their membership, and the new owner of the lease can be added in the place of the outgoing member.
The limited by shares structure is normally suited to businesses for profit, but with correctly drafted articles, this model can also work well for flat management companies. When a property changes hands, the leaseholders' related share should be transferred by a
stock transfer form
and recorded in the register of members. This can be done with just a token payment and no stamp duty is payable.
What else is required to set up a flat management company?
Similar to any other business, a flat management company will have a structure. This will usually comprise one or more directors and a company secretary. The leaseholders of the flat act as members of the company and will take on these responsibilities. They must also deal with the running, repair and maintenance of the common parts of the building, either themselves or by appointing an agent to carry out the day-to-day work.
It’s also important to note that residents appointed as directors of the company will have legal responsibilities. These include sending details to Companies House about any changes to the company, such as when directors are added or removed. They must also file the company’s annual accounts and a confirmation statement every year.
For detailed advice on this, including how to deal with the landlord of a property, you can contact the
Leasehold Advisory Service
.
What’s included in this package?
-
Formation of your new UK private
limited by shares company
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Flat management articles of association
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Super-fast online service (no signatures or paperwork required)
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Digital copies of all company documents (certificate of incorporation, memorandum and articles of association, share certificates, company register with first entries, and minutes of meeting)
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Registered office
(London, HA4)
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Director’s service address (London, HA4 for 1 officer)
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Web authentication code
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Printed copies of official documents
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Corporate hijack protection
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Pre-submission review
Optional free extras
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Free business bank account (with cashback offers)
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Free business startup and marketing guides
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Free consultation with an accountant
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Free digital marketing consultation
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Free online company manager account (web portal)
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Free customer support for the life of your company
Register your limited by shares flat management company today
What’s Included?
Limited by shares company formation
To set up a limited-by-shares company, you’ll need to register with Companies House. Our service will handle the process entirely and ensure a successful registration.
Flat management articles of association
Setting up a company for flat management requires bespoke articles of association. We’ll work with you to create flat management articles that comply with Companies House requirements.
Fast online service
We do everything we can to ensure our service is as efficient as possible. Our service requires no physical signatures or paperwork to save you time and let you focus on your company.
Digital copies of important company documents
Following a successful registration, we’ll send you digital copies of all of your essential company documents, including your certificate of incorporation, memorandum and articles of association, share certificates, company register with first entries, and minutes of the first meeting.
Strongly Recommend
I am not based in UK and so not aware of any regulations. Catherine helped me understand about the yearly filing and helped me in a high professional manner. Since then, I formed other two companies with them and will strongly recommend them to you.
Sophia Wilson
