Legal and Administration

29 Mar 2023 | 7 min |

Incorporation

The Importance of Your Club Constitution

The RFU’s Governance Committee continues to be concerned about the number of rugby clubs that continue to have unincorporated legal status and the consequent personal financial risk to their committee members and officers.

In the first instance, we recommend that all clubs complete this simple checklist to reflect on their club's current Legal Status

Economic Crime Act - Guide for clubs

The Economic Crime and Corporate Transparency Act 2023 (the Act) received final approval on 26 October 2023, with many of the key provisions now in effect.

Many of the changes introduced by the Act are aimed at large corporates, making it easier to prosecute substantial, multi-national companies (and their key personnel) when they fail to take adequate steps to prevent fraud, for example.  But changes are being introduced that impact all companies and, with many rugby clubs now incorporated as companies limited by shares or by guarantee, or as charitable incorporated organisations, it’s important that those involved in the management of rugby clubs (whether as volunteers or on a paid basis) are aware of the changes they need to adhere to. Our official Legal partner, Irwin Mitchell, has produced a brief overview of those changes likely to impact community clubs.

The Economic Crime and Corporate Transparency Act 2023 - A guide for community rugby clubs

Changes to the Trust Registration Service: Guidance for Unincorporated Rugby Clubs

Is your club an unincorporated rugby club with property/assets held by trustees? If yes, then it is essential you understand the changes that are happening. If your club is impacted by the changes to the Trust Registration Service you must act before the 1st September 2022 otherwise you could face financial penalties. 

Our official Legal partner, Irwin Mitchell, has produced a short summary of the changes and how it may impact clubs, as well contact details of their staff who can help answer questions on this topic.

Government has also produced guidance on how to manage your trust's details.

Why Incorporate?
 

Please read Why Incorporate to gain a greater understanding of our recommendation to incorporate.

The RFU recommends that all clubs incorporate and has provided comprehensive guidance and information on three options to consider.

If you are an unincorporated CASC and wish to incorporate as a CASC you will need to re-register the new company as a CASC with HMRC whether you use a Company Limited by Guarantee or a Co-operative and Community Benefit Society.

We suggest that you read the document to gain an overview of the three options.

To discuss incorporation for your club further please contact:

It is important to regularly review your constitution to ensure it is still fit for purpose.

The Club Constitution Checklist provides a checklist of the clauses that should be present in your club constitution.

Company Limited By Guarantee

Becoming a Company Limited by Guarantee is an option for your club.

Please find documents and guidance in relation to a club becoming incorporated below:

Steps to be taken to incorporate as a CLG  Incorporating an unincorporated Community Amateur Sports Club (CASC)
Template Articles of Association (CASC) Template Articles of Association (Non CASC)
Guidance notes for use of CASC and non-CASC Articles and Rules  
Precedent Memorandum for a CLG  
Template Notice and Resolution to achieve incorporation Template Rules for use with Template Articles of Association
Note on Stamp Duty Land Tax  
Guide to Administration of a Company Limited by Guarantee Steps to be taken post incorporation - CLG
Incorporating using a two-company structure  

Company Limited By Guarantee Charity

Becoming a Company Limited by Guarantee Charity is an option for your club.

Please find documents and guidance in relation to a club becoming incorporated as a Company Limited by Guarantee Charity below:

Steps to be taken to incorporate as a Charitable CLG Detailed Guidance for clubs wishing to register as a Charity
Template Articles of Association - Charity Template Articles Charity Trading Subsidiary
Guidance on CASC and Charitable Status Template Charity Resource Sharing Agreement
  Tax & VAT Implications of Recharges Between Charitable Rugby Clubs and Their Wholly Owned Trading Subsidiary Companies

Charitable Incorporated Organisation (CIO)

Charitable Incorporated Organisation is an alternative route for clubs that are considering charitable status. Find out more below:

Steps to be taken to incorporate as a CIO Detailed Guidance for clubs wishing to register as a Charity
Template Constitution (CIO)  
Guidance on CASC and Charitable Status Template Articles Charity Trading Subsidiary
Template Charity Resource Sharing Agreement Tax & VAT Implications of Recharges Between Charitable Rugby Clubs and Their Wholly Owned Trading Subsidiary Companies

Co-operative and Community Benefit Society

The Co-operative and Community Benefit Societies Act 2014 came into force on 1 August 2014.

Please see below information for people who:

Are running or advising Industrial and Provident Societies registered before 1 August 2014

Want to set up an Industrial and Provident Society after August 2014

Co-operative and Community Benefit Society update and information Incorporating an unincorporated Community Amateur Sports Club (CASC)
Guidance on Incorporating as a Co-operative Society RFU Co-operative model rules (CASC)
RFU Co-operative model rules (Non CASC) Steps to be taken post incorporation for Co-operative societies

 

Please be aware that the Financial Conduct Authority (FCA) includes a question within the registration form for clubs / CBs wishing to register as a Co-operative Society.

It asks ‘Who is the sponsoring body?’, and if clubs or CBs are using the RFU Model Rules then the answer to that question is the RFU.

Clubs/ CBs that indicate the RFU is the sponsoring body will save money on the incorporation fee.

However, the completed application form along with a copy of the proposed rules together with a marked-up copy of what changes are being made from the RFU Model Rules registered with the FCA will need to be sent to RFU Legal Department for sign-off (Legal@rfu.com).

If clubs are using the Model Rules then the current fee payable to the FCA is £40 if no changes from the Model Rules, £120 for 1-6 changes, £350 for 7-10 changes and £950 for 11 or more changes or if the club is not using the Model Rules.

Referee Society incorporation

Please find guidance in relation to your referee society becoming incorporated below:

Can't find what you need?

Visit the Community Rugby Help Centre for more information.