Setting up the right to manage
Setting up the right to manage company
The right to manage can only be taken on through a right to manage company set up by the leaseholders.
As a leaseholder you can set up the company yourself, or use a solicitor or other professional to set it up for you.
Any number of qualifying leaseholders can set up the company. You do not need half the leaseholders at this stage – more leaseholders can join later. But it’s a good idea to find out who in the building is willing to be involved and has the time and skills to help run the company.
Registering the company
You’ll need to register the right to manage company with Companies House, as a company limited by guarantee.
It must have a name ending “RTM Company Limited”, or the Welsh equivalent. There must be at least 2 directors.
You can register the company online. There are fees for registering the company and updating details. You can check the current fees on the Companies House website.
Articles of association
The company must have articles of association and a memorandum of association. These are sometimes known as the “Mem and Arts”.
The articles of association describe the purpose of a company and how it is run.
A right to manage company must have standard articles of association that are set out in legislation:
- in England – the schedule to the RTM Companies (Model Articles) (England) Regulations 2009
- in Wales – the schedule to the RTM Companies (Model Articles) (Wales) Regulations 2011
The memorandum of association is a short statement setting out your intention to incorporate the company, with a list of the names of the people setting it up.
- Last updated:
- 16 December 2025
- Next review:
- 16 December 2027
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