Community Interest Company (CIC)

This service includes

  • Ready to Trade Company limited by guarantee
  • Companies House filing fee paid by us
  • Emailed PDF of Certificate of Incorporation
  • Emailed PDF of Memorandum & Articles of Association
  • Emailed PDF of Share Certificate(s)
  • Emailed PDF of Minutes of the first meeting of Directors
  • Emailed PDF of Statutory Books
  • Free Online Company Manager to Maintain your Companies
  • Free Online & Telephone Support for the Life of your Company
  • Web authentication code to update Companies House records

Optional Free Services

  • 1 hour consultation with Accountants. Either face-to-face or by skype.
  • Optional referral to a payroll bureau
  • Optional referral to bookkeeping and accounting bureau
  • Introduction to online accounting software with introductory benefits.

Optional extra

  • Printed certificates
  • Vat Registration
  • Registered Office
  • Business Telephone

Additional items available at checkout

You can add these items during the order process

Official Post Redirection Service
£ 1/yr.
Commercial Mail Upgrade
£48/yr.
Commercial Mail Upgrade-with Post Forwarding
£92/yr.
UK Post Box Service Upgrade
£72/yr.
Corporate Hijack Protection
£2/yr.
Telephone Starter Pack
£10
Confirmation Statement With Formation
£29
Dormant Accounts
£30
Certificate of Good Standing
£30
Dormant Companies Tax Return
£30

Community Interest Companies

Community Interest Companies (CICs) are usually described as business enterprises with social objectives. A CIC’s profits and assets are used for the public good. CICs differ from Charities in many ways. In particular, CIC legislation allows social entrepreneurs to both control the company and to receive a salary.

About Community Interest Companies (CICs)

CIC features which distinguish them from charities.

  • Unlike charities, CICs can undertake any trading activities they choose, subject to the normal regulatory restrictions.
  • CICs can pay their directors the market rate for their skills whereas charities face restrictions. This feature allows CICs to attract the best talent
  • SITR (Social Investment Tax Relief) is a special tax relief that is now available to donor’s who provide debt and equity funding to CICs. This tax relief has been available since 2014/2015.
  • Profit and interest can be paid to investors, subject to a maximum of 35% of distributable reserves.
  • CICs can issue performance related loans that pay interest based on their trading results. The interest is capped at 20%.

Features of a CIC being limited by guarantee:

  • 1 member 1 vote. Control is not concentrated.
  • No owners (shareholders), just members.
  • Because LBGs do not have a share structure, they can’t pay dividends.
  • LBGs are preferred by grant and funding providers because of the above features.

Features of a CIC being limited by shares:

  • Voting depends on each member’s shareholding
  • Easy to distribute a dividend, subject to the dividend cap.
  • Easier to issue shares in return for capital.
  • A Share structure is essential if the CIC has a holding company or is owned by a charity.

Approval by the CIC Regulator

To be a CIC, each company must be approved by the CIC Regulator. The Regulator will ensure that the asset lock provision is included in the Articles of Association. He will also require the following information about the CIC’s objectives and activities.

What our service involves

Companies House have now changed their system for processing CICs. Accordingly, we are able to reduce our charge for this service to £77+vat. If there are less than 6 participators and none of them are corporate i.e. LTD or LBG, it should take less than 1 week to register a CIC. The time taken will depend on how quickly you respond to our request for additional information regarding your application after you have placed the order. Once we submit your application we will keep you informed of its progress.

The new CIC ordering system at Companies House will only apply to applications that have less than 5 officers of the company i.e. shareholders, guarantors and directors. If there are more than 5 the process will take 3-4 weeks. It is always possible to add officers after the company has been formed, and for this reason we suggest that you keep the number of officers below 5 until the CIC is incorporated.

Once you have placed your order, you will receive an email asking for additional information. The information we request will allow us to complete the documents that need to be submitted to incorporate your company; CIC 36 or, if you are changing the status of an existing company, CIC 37

These documents need to be signed by all the directors and will need to include the following information:

  • A description of the community you are helping
  • A description of your company’s intended activities
  • An explanation of how your activities will help the community.

We will also select the appropriate model aArticles of Association and edit them to suit your circumstances. Broadly speaking, there are 5 to choose from as follows:

Model 1 is for use when:

  • A company is limited by guarantee, and
  • all the directors are also members of the CIC, and
  • all the members are directors of the CIC

Model 2 is for use when:

  • A company is limited by guarantee, and
  • The number of members exceeds the number of directors directors

Model 3 is for use when:

  • The company is limited by shares, and
  • Each director is a shareholder in the company.and
  • Each shareholder is a director
  • Dividends will only be paid to an asset locked body,

Model 4 is for use when:

  • The company is limited by shares
  • The company has more shareholders than directors
  • Dividends will only be paid to an asset locked body.

Model 5 is for use when:

  • The company is limited by shares
  • The company has more shareholders than directors
  • Dividends will be paid to an asset locked body and the shareholders.

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