Why do companies need articles of association?

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Hi there,

Why am I being asked to provide articles of association to set up a company? What are they and why do I need them. I cannot for the life of me find out why I need them or what they actually do/are for. I am setting up a company limited by shares just on my own, if that makes a difference.

Thank you in advance,

Answers

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You need articles of association to determine the rules for running your company within the scope of UK company law. This important document forms your company's constitution and governs things like appointing and removing directors, making decisions, the rights and duties of shareholders and directors, etc

Most new companies use the standard Model articles issued by Companies House. It does not matter how many people are setting up the company, whether it’s one person or lots of people. If you choose to adopt this version, you just need to state that fact on the application - there’s no need to actually provide a copy for Companies House.

However, you can alter the Model version or create completely bespoke articles to better suit the needs of your business. If you do this, you will have to send a copy to Companies House when you submit your application to incorporate, or if you decide to change the articles after formation.

a year ago
 

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