No. A community interest company (CIC) must be a limited company. This means that an unincorporated charity including charitable trusts cannot convert to a CIC. … A charity could not transfer its assets to become part of the corporate property of a community interest company (CIC).
Why a CIC and not a charity?
A CIC is expected to make a profit/surplus whereas a charity is considered as a not for profit which should not profit from the work it carries out. CICs are expected to reinvest their surpluses to do more of their work but can also pay a proportion of this out to the owners or investors.
Who owns a CIC company?
In a CIC “limited by shares” the owners will each hold one or more shares, just as they would in a normal profit making business. They can have any amount of shares and can each hold a different number, thereby defining the degree of control or ownership that each of them holds.
Is a CIC a not for profit company?
A community interest company (CIC) limited by guarantee is a ‘not for profit’ company, this means that it does not operate for private profit. Any profit generated is used to grow and develop its business which is benefiting an identified community, or goes directly to benefit that community.
Do CIC companies pay 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.
Does a CIC need a company secretary?
All CICs must be one or other of the two most common forms of company: A company limited by guarantee, or • A company limited by shares. … Please note a private company does not need a company secretary, but if it does appoint one, the details must be delivered to the appropriate Registrar.
Can CIC directors be paid?
A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.
Can you sell a CIC company?
Can you sell a community interest company? … A CIC’s assets have to be retained for community benefit. They can be transferred to another asset-locked organisation in some cases, such as another CIC or a charity.
How many directors does a CIC need?
Number of directors
A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three.
How does a CIC make money?
A Community Interest Company (CIC) limited by guarantee with no share capital (CLG) has no shareholders. … CLGs usually raise funds through grants or donations, rather than from shareholders.
How much does it cost to set up a CIC?
Enabling you to register your company name with Companies House, register with HMRC for Corporation Tax and gain approval from the CIC Regulator to form a CIC , all at the same time. The filing fee for an online incorporation for a CIC is £27 and is payable by card or PayPal.
Does a CIC have members?
Like all other companies CICs will have a number of stakeholders such as members, directors, employees, customers etc, but it is an important principle that a CIC should have particular regard to its major stakeholder i.e. the community, which is intended to benefit from its activities.
What are the benefits of being a CIC?
Compared to a standard company, a CIC specifically provides several advantages:
- 1 A clear commitment to social goals. …
- 2 Access to certain forms of finance. …
- 3 Limited liability and protection. …
- 4 Familiarity. …
- 5 Flexibility of limited company structure. …
- 6 Continuity of purpose. …
- 7 Quicker to set up.
Is a CIC trading?
A CIC can also be owned by a charity in the same manner as would apply to a Charitable Trading Company, meaning that a CIC can be used as the “trading arm” of a parent charity.