Setting up a Community Interest Company (CIC) UK
Welcome to our guide on establishing a Community Interest Company (CIC). A CIC is a unique type of limited company designed to benefit the community rather than focusing solely on private profit for shareholders and directors.
Here, we’ll walk you through the essential steps and requirements to set up a CIC.
What is a CIC?
A CIC is a business entity created to serve a social purpose, ensuring that its assets and profits are used for the public good. This structure contrasts with general commercial companies, which prioritize financial gain for their owners.
Steps to Set Up a CIC- formation process
1. Prepare a Community Interest Statement
The first step in setting up a CIC is to prepare a Community Interest Statement. This document should clearly outline the community-focused goals and activities of your company.
2. Include an Asset Lock
Incorporate an asset lock in your Articles of Association. This legal provision ensures that the company’s assets are dedicated to its social objectives and restricts the distribution of profits to shareholders. The asset lock is crucial for maintaining the company’s focus on community benefit.
3. Draft a Constitution
Create a constitution detailing the legal framework guiding your CIC’s operations. You can use model constitutions provided by the CIC Regulator, known as Articles of Association, to ensure compliance with regulatory standards.
4. Register with the CIC Regulator
The CIC Regulator is responsible for registering all CICs in the UK. Submit your application to the Regulator for approval. This step is vital to officially establish your company as a CIC.
5. Complete Form IN01
Fill out Companies House Form IN01 for incorporating a company. This form requires comprehensive details, including:
- The company name
- Registered address
- Personal details of the directors
- Service addresses of directors
- Subscription shares acquired
- Nature of Persons of Significant Control (PSC)
6. Submit Form CIC36
Finally, complete and submit Form CIC36. This declaration outlines your CIC’s social mission and the specific activities you will undertake to achieve these goals.
Why Choose a CIC?
Choosing to establish a CIC demonstrates a commitment to using business as a force for good. By following the steps outlined above, you can create a company that prioritizes community benefit and social impact.
Why Use a Professional Adviser?
Setting up a CIC involves navigating a range of legal and administrative requirements. Using a professional adviser can offer several benefits:
- Expert Guidance: Professional advisers have the expertise to ensure that all documents are correctly prepared and submitted, reducing the risk of errors.
- Efficiency: An adviser can streamline the process, saving you time and allowing you to focus on your mission.
- Compliance: Ensuring compliance with all regulatory requirements is crucial for the successful registration and operation of your CIC.
- Peace of Mind: With fixed and competitive fees, professional advisers take the worry out of managing your CIC’s setup and ongoing obligations.
How We Can Help
At KG Accountants, all our CIC fees are fixed. By giving you a fixed and competitive price, we take the worry away from registering your CIC, allowing you to focus on managing your organisation effectively.
Arrange a FREE CIC Tax Initial Consultation
Call us today at 0207 953 8913 or complete our enquiry form to book a FREE initial CIC consultation.