Royal Charters
What is a Royal Charter?
A Royal Charter is a formal document issued by the Sovereign, typically on the advice of the Privy Council, to establish an organisation with a distinct legal identity. Many Royal Charters date back centuries and were used historically to create public or private corporations with defined privileges and purposes. While some of the UK’s oldest universities, like those in England, Wales, and Northern Ireland, were established by these charters, today, the Companies House prefix “RC” denotes organisations incorporated by Royal Charter.
Definition of a Royal Charter
A Royal Charter is a legal instrument that incorporates an organisation and grants it independent legal personality. Each charter defines the organisation’s objectives, constitution, and powers for self-governance, allowing it to operate under unique rules. For example, a university’s charter will outline different powers and governance structures compared to a professional body or commercial organisation.
History of Incorporation by Charter
Until the 19th century, Royal Charters were the primary way to legally incorporate an organisation, leading to the creation of universities, guilds, schools, and municipalities. However, with the advent of the Companies Acts, individuals gained the ability to incorporate companies without needing a Royal Charter, reducing the reliance on this traditional method of incorporation.
Chartered Bodies and Companies House
Organisations incorporated by Royal Charter are registered with Companies House, where they receive a company number with the prefix “RC”. This prefix sets them apart from other bodies incorporated under the Companies Acts. Companies House requires verification from the Privy Council Office before registering or altering a Chartered body, and unlike most companies, Chartered bodies are not required to file accounts with Companies House.
Useful Links for Further Reading
- Companies House: Guidance on Royal Charters – This page provides detailed guidance on Royal Charters, including information on how to establish or alter a chartered body, making it essential for organisations looking to understand the registration process and requirements.
- The Privy Council: Royal Charters – This link offers an overview of the Privy Council’s role in granting and overseeing Royal Charters. It’s helpful for those interested in the background and legal process of obtaining a Royal Charter in the UK.
- Doorda: Company Number Prefixes Defined – This article explains various company number prefixes, including “RC,” helping users understand the different prefixes allocated by Companies House and what they indicate about a company’s structure and origin.
For more detailed insights into companies, including Royal Charters and their filings, explore our Business data product which provides extensive Company Data on all UK-registered companies.
- Glossary: Company Number Prefixes DefinedCompany Number Prefixes are assigned to non-standard companies to make them easier to identify. These are assigned when registering with Companies House.
- Glossary: Company Types and AbbreviationsNot all companies in the UK operate in the same way, some limit liability, others don't, some have shareholders, and some don't. What do the abbreviations PLC and LTD mean?