What is the incorporation service?
As set out in our Introduction to Legal Formats, there are only a limited number of legal forms that are suitable for a CLT. One of the most popular is a Community Benefit Society (CBS). To incorporate as a CBS you will need to register your governing documents with the Financial Conduct Authority (FCA).
The FCA charges a fee for each new registration, which varies according to the complexity of the registration. Their standard fee is reduced if you use 'Model Rules' - these have been previously agreed by the FCA with a 'sponsoring body' (e.g. the National CLT Network) and act as a template.
The National CLT Network owns template constitutions or 'Model Rules' for a CBS in two forms; non-charitable and exempt charitable. These were approved by the Financial Conduct Authority in January 2018.
Our rules have been designed with CLTs in mind and aim to be as encompassing of CLT activity as possible. For example, they include an asset lock meaning your homes will be owned by the community in perpetuity, standard governing rules around elections to your board, and more.
How does it work?
After you contact the National CLT Network to enquire about using our incorporation service, you’ll be sent an initiation form to briefly summarise your intentions and activities as a CLT. Once we’ve received your initiation form, the service is a four-stage process:
- Amending the rules
- Finalising the rules and application form
- Signing the rules and application form
- Sending all the documents to the FCA
How long does it take?
The FCA takes a maximum of fifteen working days to respond to each application and the four stages mentioned above can take anywhere from one week to several weeks. This depends on the number of amendments required and the number of applications being processed by the National CLT Network at that time.
How much does it cost?
The National CLT Network charges:
- £325 for members of the National CLT Network
- £550 for non-members
Our membership fees start at £75.00 so if you’d like to join us as well as using our incorporation service, just let us know! You can read more about membership here.
The FCA charges fees for processing applications, which depends on the number of amendments you make to our set of model rules:
- £40 – Application using model rules without any amendments
- £120 – Application using model rules with between 1 and 6 amendments
- £350 – Application using model rules with between 7 and 10
- £950 – Application using model rules with 11+ amendments or brand new rules
There is often funding available to help CLTs incorporate. One of these funding pots is the Community Led Homes Start-Up Support programme.
Want to make use of our incorporation service?
Start your application here.