How Can I Start My Own CIC Company?

Can a CIC make a profit?

There is no limit to the level of profit a CIC is allowed to make as this profit will be used to benefit the community it was set up to serve.

There are no tax advantages so regulation is light touch, a balance of minimal regulation whilst maintaining confidence in the “CIC” brand..

Can a CIC own property?

The CIC or charity can own property, and rent space to the other. … The charity would be eligible for a lot more trusts and foundations that only give grants to registered charities, as well as being eligible for gift aid on donations.

Can you sell a CIC company?

They can be transferred to another asset-locked organisation in some cases, such as another CIC or a charity. If your CIC is limited by shares, those shares may be able to be sold on for a profit, but it’s a lot more complicated to ‘sell’ a CIC than a standard company and may not generate the same level of returns.

Who owns a CIC?

Specifically one limited by guarantee. The two original subscribers (members) of a CIC want to transfer formal ownership to a new group. Do they formally write to each other to resign.

Can a CIC own a limited company?

5 Flexibility of limited company structure A CIC can be set up as a private company limited by shares, private company limited by guarantee or public limited company. A guarantee company basis will often be particularly familiar to those with a history working in charitable organisations.

Can a CIC get gift aid?

Please be aware CICs cannot qualify to receive Gift Aid donations (because a CIC is not a charity). CIC law specifically forbids a CIC from being a charity. …

How many directors does a CIC need?

two directorsNumber of directors A CIC limited by shares can have just one director and shareholder. 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 long does it take to set up a community interest company?

around two to three weeksProvided there are no issues raised by the CIC regulator or Companies House, the CIC should be registered around two to three weeks from the application date. Unfortunately, it is still not possible to register a CIC electronically, which can speed up the registration process for normal companies.

Do CIC companies pay tax?

Does a community interest company (CIC) Pay Tax? A community interest company (Or CIC) is liable to Corporation tax as a company. This applies to all it’s Trading profits, Investment Income and any gains. It’s an asset locked body that must ensure any profits/assets are used for the benefit of the community.

How much does it cost to register 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.

Can I file CIC accounts online?

If you are a CIC that meets the above criteria you can file online *if* you choose to file small-“full” accounts. … It is each company’s choice as to what type of accounts they want to prepare and, legally, they are then required to file a copy of those accounts with the Registrar of Companies.

What is the difference between a charity and a CIC?

Charities can claim relief on most income and gain, and on profits from some activities. They can also claim back tax previously paid on any income they receive – such as the income tax paid on donations. By contrast, CICs don’t get any tax breaks, even if their objects are entirely charitable.

Does CIC have to register with Charity Commission?

CICs are not charities and are regulated by the Regulator for Community Interest Companies (RCIC), not the Commission. … This charitable trust must be registered, if it meets the minimum requirements. A charitable company that has converted to a CIC must be removed from the Register as it is no longer a charity.

What is a CIC company?

A community interest company (CIC) is a type of company introduced by the United Kingdom government in 2005 under the Companies (Audit, Investigations and Community Enterprise) Act 2004, designed for social enterprises that want to use their profits and assets for the public good.

Can a CIC pay dividends?

CICs limited by shares are subject to a dividend cap. This means that 65% of all a CICs surplus profits must be used for community purpose and just 35% can be used to pay dividends to their shareholders.

Is a CIC a non profit?

Under the CICA, CICs, like any other business corporation, are permitted to engage in their activities with a profit motive and are established with share capital. The latter feature specifically distinguishes CICs from registered charities and non-profit organizations. CICs must have a community purpose.