What is an RMC?
Residents Management Companies are usually written into the lease terms and represent the owners of the flats and houses on a development. Each property owner will be a member of the company and a board of directors will be appointed to manage the buildings and communal areas. The company can be financed by shares or be limited by guarantee and the owners usually have an equal share and control of the company. The company is governed by regulations of the Companies Act 2006. When someone sells their property the share will transfer from the old owner to the new one.
What is an RTM
A Right to Manage company is where a group of residents have formed a committee to form a company to manage their development or particular block of flats. The difference from an RMC is that the RTM company will not be listed within the original leases. It is part of the Commonhold and Leasehold Reform Act 2002 that allows this process to take place and for tenants to take control of their own properties, however there is a legal process to be undertaken that requires the agreement of the tenants and the landlord.
RTM Companies are also governed by regulations of the Companies Act.
Accounts preparation and tax management
Companies House requires all RMCs and RTMs to prepare annual statutory accounts in accordance with the Companies Act 2006 even though those companies are essentially dormant. We provide a fast, cost-effective service for all RMCs allowing them to comply with those regulations easily and in a timely manner.
When any limited company is formed, HM Revenue & Customs require Corporation Tax returns to be submitted annually. We can prepare the relevant forms for you or as in most cases, we will request for dispensations to be granted by HMRC as the companies are mutual trading entities, which will therefore save you money as then it is only a review is that is required every five years.
In addition to the accounting services we provide a range of secretarial functions. These include completing annual returns, supply of a service address, acting as a registered office and the necessary re-issuing of share certificates when owners move.