LEGAL STRUCTURES

Description:
An informal group bound by a constitution or rules. Not a legal entity—contracts and liabilities fall on individuals.

Pros:

• Simple and cheap to set up
• Minimal admin and reporting
• Suitable for small, volunteer-led clubs

Cons:

• No legal personality—can’t own property or enter contracts
• Committee members may be personally liable
• Limited access to funding and grants

Best for:
Small, local clubs with no employees or assets.

Setup Steps:

• Draft a constitution (template via Sport England or County FA)
• Elect a committee
• Open a club bank account
• Optional: affiliate with NGB or County FA

Useful Links:

• Sport England Constitution Templates
• FA Club Structures Guide (PDF)

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Description:
A formal incorporated structure without shareholders. Members guarantee a nominal amount (£1) if the company is wound up.

Pros:

• Legal personality—can own assets and enter contracts
• Limited liability for members
• Recognised by funders and governing bodies
• Can register as a CASC or charity

Cons:

• Requires Companies House registration and annual filings
• More admin than unincorporated model
• Directors have fiduciary duties

Best for:
Medium-sized clubs with assets, staff, or funding ambitions.

Setup Steps:

• Choose a company name
• Draft Articles of Association
• Register with Companies House
• Appoint directors and guarantor members

Useful Links:

• Register a CLG – Companies House
• Model Articles – GOV.UK

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Description:
A tax status, not a legal structure. Can be applied to CLGs or other incorporated bodies.

Pros:

• Tax reliefs (e.g. business rates, Gift Aid)
• HMRC recognition
• Still allows trading within limits

Cons:

• Must meet strict eligibility criteria
• Limits on non-member income
• Can’t pay directors unless permitted

Best for:
Clubs seeking tax benefits but not full charitable status.

Setup Steps:

• Must be incorporated (e.g. CLG)
• Ensure constitution meets CASC criteria
• Apply to HMRC with supporting documents

Useful Links:

• • Register as a CASC – HMRC
  • CASC Guidance – HMRC

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Description:
A legal structure regulated by the Charity Commission. Combines charity status with incorporation.

Pros:

• Limited liability
• No need to register with Companies House
• Access to charitable funding and tax reliefs
• Clear governance model

Cons:

• Slower to set up
• Must meet charitable objectives
• Trading must be via a subsidiary

Best for:
Clubs with strong community focus and charitable aims.

Setup Steps:

• Choose a name and charitable purpose
• Draft a constitution (foundation or association model)
• Apply via Charity Commission portal

Useful Links:

• Register a CIO – Charity Commission
• CIO Constitution Templates – GOV.UK

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Description:
A limited company with a social purpose, regulated by the CIC Regulator.

Pros:

• Limited liability
• Can trade and pay staff
• Easier to set up than a charity
• Asset lock protects community benefit

Cons:

• No Gift Aid or charity tax reliefs
• Must pass community interest test
• Annual reporting to CIC Regulator

Best for:
Clubs with mixed commercial and social aims.

Setup Steps:

• Choose a name and draft Articles of Association
• Complete CIC36 form
• Register with Companies House

Useful Links:

• • Register a CIC – GOV.UK
  • CIC Regulator Guidance

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Description:
A CLG that is also a registered charity.

Pros:

• Full charitable status and tax reliefs
• Legal personality and limited liability
• Widely recognised by funders

Cons:

• Dual regulation
• Complex governance and reporting
• Trading must be via a subsidiary

Best for:
Larger clubs with charitable aims and capacity for compliance.

Setup Steps:

• Register as CLG with Companies House
• Apply to Charity Commission
• Draft governing documents to meet both regulators’ requirements

Useful Links:

• • • • • Register a Charity – GOV.UK
        • Register a CLG – Companies House

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Description:
Incorporated under the Co-operative and Community Benefit Societies Act. Owned by members.

Pros:

• Legal personality and limited liability
• Democratic governance
• Can raise capital via community shares

Cons:

• Less common in sport
• Regulated by the FCA
• Complex to convert from other structures

Best for:
Clubs with strong member ownership ethos or community share ambitions.

Setup Steps:

• Choose co-op or community benefit model
• Draft rules using FCA templates
• Apply to Financial Conduct Authority

Useful Links:

• • • Register a Society – FCA
    • Community Shares Unit

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Description:
Standard commercial company with shareholders. Used by professional clubs.

Pros:

• Full commercial flexibility
• Can pay dividends and raise equity
• Suitable for high-revenue operations

Cons:

• No tax reliefs or charitable benefits
• Shareholder interests may conflict with community aims
• Complex governance

Best for:
Professional clubs with commercial operations and investor backing.

Setup Steps:

• Choose a name and share structure
• Draft Articles of Association
• Register with Companies House

Useful Links:

• • • Register a Ltd Company – GOV.UK

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Description:
A dual structure: Ltd company for commercial operations, CIO or charity for community work.

Pros:

• Clear separation of commercial and charitable activities
• Access to both funding and trading opportunities
• Protects charitable assets from commercial risk

Cons:

• Requires careful governance and inter-company agreements
• Dual reporting and compliance
• Risk of mission drift

Best for:
Professional clubs with a community foundation or charitable outreach.

Setup Steps:

• Register Ltd company for trading arm
• Register CIO or charity for foundation
• Draft service-level agreements between entities
• Align governance and branding

Useful Links:

• • • • Register Ltd – Companies House
      • Register CIO – Charity Commission

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Structure	Legal Entity	Liability	Tax Reliefs	Trading Allowed	Setup Speed	Best For
Unincorp. Assoc.	❌	Unlimited	❌	Limited	✅ Fast	Small clubs
CLG	✅	Limited	✅ (if CASC/charity)	✅	✅ Fast	Growing clubs
CASC	✅ (status only)	Limited	✅	✅ (limits)	✅ Fast	Tax relief seekers
CIO	✅	Limited	✅	❌ (needs subsidiary)	❌ Slow	Charitable clubs
CIC	✅	Limited	❌	✅	✅ Fast	Social enterprise clubs
CCLG	✅	Limited	✅	❌ (via subsidiary)	❌ Slow	Large charitable clubs
Reg. Society	✅	Limited	✅ (if charitable)	✅	❌ Slow	Member-owned clubs
Ltd Company	✅	Limited	❌	✅	✅ Fast	Professional clubs
Hybrid (Ltd + CIO)	✅ (dual)	Limited	✅ (via CIO)	✅ (via Ltd)	❌ Slow	Clubs with dual aims