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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11554
Experience:  30 years as a practising solicitor.
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I will like to set a company that sells local crafts and arts

Resolved Question:

I will like to set a company that sells local crafts and arts online. However, I want to give all the profits from the company to schools/society that offer funding or training to local artisans.
Given this set-up, would I be able to register this company as a UK (England/Wales) charity? and would this change if paid myself and employees a fixed salary? or if the artists are from outside the UK.
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
You will already have read that a charity must have a charitable purpose for the public good. As the money is going to benefit a class of person in the UK you can apply for registration as UK charity. Rather than a company or even a guarantee company there is now a new structure available to you called a charitable incorporated organisation which means that you only have one set of registrations to deal with rather than dealing with the charity regulator and the companies regulator.
As the purpose of the charity is to raise money for education and you are based in the UK it doesn't matter where the artists are based. And yes, a charity is able to pay its employees for the work that they do although the regulator will keep an eye on the amount per pound that is paid out in expenses over the money going to the cause.
I hope this helps and I am happy to discuss further.
Please leave a positive response so that I am credited for my time.
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