What Are the Legal Steps to Register a Society in the UK?

Registering a society in the UK involves a series of legal steps governed by regulations set forth by the Financial Conduct Authority (FCA). Whether you aim to establish a co-operative society or a community benefit society, understanding and following the correct procedures is crucial to ensure compliance and successful registration.

Table of Contents

1. Determine the Type of Society

The first step in the registration process is to decide on the type of society you wish to establish. This decision influences the subsequent steps and regulatory requirements.

Types of Societies:

Co-operative Society: This type of society is set up to operate for the mutual benefit of its members. Co-operatives focus on providing services or benefits to their members rather than generating profit for external stakeholders.
Community Benefit Society (BenCom): A Community Benefit Society conducts its activities primarily for the benefit of the community at large. Unlike co-operatives, BenComs aim to create positive impacts on society and are often used for projects that benefit the public or specific communities.

2. Create Governing Rules

The governing rules of a society outline its structure, operations, and member responsibilities. These rules must comply with legal requirements and can either be customized or follow standard models provided by relevant bodies.

Options for Governing Rules:

Model Rules: Utilize pre-approved model rules provided by a sponsoring body. This can simplify the registration process and may reduce associated costs.
Custom Rules: Draft your own governing rules tailored to your society’s specific needs. Ensure that these rules adhere to legal requirements and are in line with the objectives of your chosen society type.

3. Gather Members

A society must have a minimum number of members to be eligible for registration. This requirement ensures that the society has a functional and operational structure.

Member Requirements:

Minimum Members: For most societies, at least three members are required to register. However, if both members are already registered societies, only two members are necessary.

4. Complete the Application

The application process involves submitting a completed application form, governing rules, and the applicable registration fee to the FCA.

Application Components:

Application Form: Fill out the application form accurately, detailing the society’s objectives, governance, and membership structure.
Governing Rules: Include a copy of the governing rules with your application. Ensure these rules are comprehensive and reflect the society’s intended operations.
Registration Fee: Pay the required fee, which varies based on whether you use model rules or custom rules. Fees typically range from £40 to £950.

5. Submit the Application

Once the application form and associated documents are ready, submit them to the FCA. This can be done through the following methods:

Submission Methods:

Mutuals Society Portal: The most efficient method is to submit your application through the Mutuals Society Portal, which provides an online submission option.
Offline Submission: Alternatively, download and complete a Word version of the application form, then submit it by post.

6. Await Registration

After submission, the FCA will review your application. The processing time for valid applications is generally within 15 working days.

Post-Registration:

Mutuals Public Register: Upon successful registration, your society will be listed on the Mutuals Public Register, and you will receive a certificate confirming your registration status.

7. Fulfill Ongoing Obligations

Following registration, your society must comply with ongoing regulatory obligations to maintain its status and operate effectively.

Ongoing Requirements:

Registered Office: Maintain a registered office where official correspondence can be sent and received.
Register of Members: Keep an accurate and up-to-date register of members, detailing their contact information and roles within the society.
Annual Returns and Accounts: Submit annual returns and financial accounts within seven months of the end of your financial year. This ensures transparency and accountability.
Notification of Changes: Inform the FCA of any significant changes to the society’s structure, governance, or other relevant details.

Conclusion

Registering a society in the UK requires careful adherence to legal steps and regulatory requirements. By determining the type of society, creating appropriate governing rules, gathering members, completing and submitting the application, and fulfilling ongoing obligations, you can ensure that your society is legally established and compliant with FCA regulations. Consulting with a sponsoring body or seeking professional advice can facilitate a smooth registration process and help navigate any complexities.