2 comments | Tags: business types, community interest companies. A community interest company (or CIC) is a special form of non-charitable limited company, which exists primarily to benefit a community or with a view to pursuing a social purpose, rather than to make a profit for shareholders.
Table of Contents
Who controls a CIC?
CICs are regulated by the CIC Regulator. (2) the Community Interest Statement and Report.
How can I start my own CIC company?
- 1 Register your CIC online with Companies House.
- 1 Complete form IN01: application to register a company.
- 2 Complete form CIC36: application to form a CIC.
- 3 Create the memorandum and articles of association.
- 4 Send the documents and fee.
- 1 Complete form IN01: application to register a company.
Do CIC companies pay tax?
Tax. CICs are taxed in the same way as normal companies. They are subject to corporation tax and VAT and a CIC that makes donations to charity can deduct this as a charge when calculating its profit for corporation tax purposes.
What is an example of a CIC?
Community interest company examples
Transport, health and social care services, and creative arts projects are just some areas where you’ll find community interest companies.
Can CIC directors be paid?
Can directors be paid? CICs have the option to pay their directors remuneration. This too is overseen by regulation. The community interest test and the asset lock apply as much to the remuneration of directors as to any other area of a CIC’s business.
Can a CIC have one director?
If your CIC is limited by shares, You must have at least one director and shareholder. There is no Limit on the maximum you can have. A CIC that is limited by guarantee should have at least one directors or Subscriber . Depending on the bank or funding body you’re working with, they may require three.
Can a CIC have paid staff?
While most of a CIC’s profits will usually go back into running the business, directors can still be paid for their services as long as their remuneration is “reasonable” and “transparent”. The idea is that CICs are run as a business, so they’ll want to attract talented directors to achieve their full potential.
Is a CIC a limited company?
A CIC is a special type of limited company which exists to benefit the community rather than private shareholders. To set up a CIC , you’ll need: a ‘community interest statement’, explaining what your business plans to do.
Who are members of a CIC?
A CIC can be formed with any number of members (it can be a single member company or involve a wide membership) and can have a mix of stakeholders, so that investors can be involved and can be paid dividends or performance-related interest.
Can a CIC be sold?
A CIC can use its assets as collateral for a loan or other debt. If the assets are used for a debt and the CIC fails, the assets can be used to meet its obligations. The assets can either be transferred as a whole or sold to meet a debt-obligation.
How many people do you need to start a CIC?
For a CIC LBG, you will need at least 2 directors. A credit card or Pay Pall account pay the fee (currently £27).
What is CIC registration?
CICs are registered with Companies House as companies but it is the CIC Regulator who decides whether an organisation passes the community interest test. Register as a Limited Company. Provide a community interest statement that explains what your business plans to do and how it serves the community.
How does a community interest company work?
A community interest company is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or the community, rather than being driven by the need to maximize profit for shareholders and owners.
Reference:
- https://www.informdirect.co.uk/company-formation/community-interest-company-cic-advantages-disadvantanges/
- https://kgaccountantsblog.com/2022/05/16/what-are-the-advantages-of-setting-up-a-community-interest-company/
- https://www.communitycompanies.co.uk/community-interest-companies-cic
- https://www.gov.uk/government/publications/community-interest-companies-business-activities/cic-business-activities-forms-and-step-by-step-guidelines
- https://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2013/october/community-interest-companies.html
- https://www.simplybusiness.co.uk/knowledge/articles/2022/05/what-is-a-community-interest-company-uk/
- https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/605431/13-782-community-interest-companies-frequently-asked-questions-for-funding-organisations.pdf
- https://kgaccountantsblog.com/2021/09/01/how-many-directors-does-a-cic-need/
- https://www.jcssutton.co.uk/news/blog/setting-up-a-community-interest-company-cic/
- https://www.gov.uk/set-up-a-social-enterprise
- https://www.burges-salmon.com/news-and-insight/legal-updates/community-interest-companies-an-introductory-guide
- https://kgaccountantsblog.com/2020/01/21/asset-locked-the-cic-mystery/
- https://www.charityexcellence.co.uk/Home/BlogDetail?Link=Community_Interest_Company_Registration
- https://www.transmitstartups.co.uk/business-planning/how-to-register-a-community-interest-company-cic/
- https://en.wikipedia.org/wiki/Community_interest_company
