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
  • CIC Conversion

Additional items available at checkout

You can add these items during the order process

Official Post Redirection Service
£ 1/yr.
Business Mail Upgrade
£48/yr.
Business Mail Upgrade-with Post Forwarding
£92/yr.
Telephone Answering Services
£145/yr.
UK Post Box Service
£72/yr.
Corporate Hijack Protection
£ 2/yr.
Pre-submission Review
£ 2
Certificate of Good Standing
£30
Guaranteed Same Day Service
£23
Payroll Registration
£10

Community Interest Company-LBG

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.

Information for Community Interest Company-LBG

Registering a limited by guarantee CIC

A CIC cannot be created online. So we have developed a 2 step system to process your order.

Step 1: You place an order for a limited company. At this stage, you cannot include the word CIC in the name, and you do have to include the “LTD”/ “Limited“ suffix at the end of the name. When you place the order, you make sure the CIC conversion service is included. Unless you have ordered extras, the invoice should come to £75 plus VAT of £7.40. Subject to you having completed your application correctly and subject to the workload of Companies House, your LBG / LTD should be ready within 1 working day after you place your order.

Step 2: We email you a short questionnaire about your CIC. Once you have supplied the answers we prepare a conversion pack. After you have checked it, we send the completed documentation to the CIC Regulator. The entire process will take approximately 3 weeks, providing the CIC Regulator does not query an application. Once it is approved, you can change the name of your company to” YOUR COMPANY NAME CIC”.

Registering a limited by shares CIC.

It is also possible to register a CIC which is limited by shares. However, this service cannot be ordered online from us. If you would like us to form a CIC limited by shares, please contact us. It is estimated that about 75% of all the CICs that have been registered are limited by guarantee. The remainder are trusts or limited by shares.

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. The last tax year (2014/2015) was the first time the relief became available.
  • 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%.

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. The last tax year (2014/2015) was the first time the relief became available.
  • 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.

  • A clear definition of the intended beneficiaries of the CIC’s activities.
  • A description of the trading activities and any programmes intended to help the target communities.
  • Full details of the way the target community will benefit from the activities of the CIC.

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