Are you an organisation conducting an industry, trade or business either as a co-operative or for the benefit of the community?

What is an Industrial Provident Society?

Industrial and Provident Societies (IPSs) are a legal form for trading businesses in the UK. Governed by the IPS Act of 1965 and regulated by the Financial Services Authority (FSA), any business can qualify except investment for profit organisations.

All IPSs have share capital and limited liability but there are two forms: bona fide co-operatives and societies for the benefit of the community. 

Bona fide co-operatives

• Trade for the mutual benefit of their members.
• Registrar will judge the legality of their action by reference to co-operative principles.
• Control of the society must be vested in the members equally.
• Members can receive a dividend on their transactions with the society.

 Societies for the benefit of the community

• Trade to benefit the broader community.
• Registrar will refer to charity law.
• Societies for the benefit of the community are granted charitable status by the HMRC, rather than the Charity Commission.
• Membership is open to anyone who supports the objectives of the society. 

There are also a number of other special features that we would be happy to discuss with you in person.

If you have a moment please take a look at the dedicated pages on our website

www.plummer-parsons.co.uk/not-profit/industrial-and-provident-societies-ips

or ask us to send you our factsheet.

For a no obligation free initial meeting please do not hesitate to contact Neville Beckhurst on 01323 431200 or email neville.beckhurst@plummer-parsons.co.uk