academies trading reform product.
Academies may want to establish a trading subsidiary for a
number of reasons and these may include ring-fencing any risks
associated with non-primary purpose trading; making the most of
existing assets and resources to generate additional income; or
avoiding breaching HMRC’s tax concession. The DfE may also require
it as a condition of conversion.
When setting-up a trading subsidiary, academies will need to put
in place robust arrangements which will go beyond simply
incorporating a shelf company (ready made company). It is therefore
important to have in place a service agreement that not only sets
out the basis of the provision of services between the academy and
its subsidiary to ensure compliance with charity law but to also
ensure that the academy has appropriate control over the activities
of its subsidiary.
Our expert team will provide you with straightforward, practical
advice on establishing your trading company and they will prepare
all of the documentation required to form your trading company,
including incorporating your trading company at Companies
House.