Designated Online Company Manager for free to maintain the Company
PDF of Statutory Books sent via email
A PDF containing Certificate of Incorporation sent via email
PDF of Share Certificate(s) sent via email
PDF containing Minutes of the first meeting of Directors sent via email
A PDF of Memorandum & Articles of Association sent via email
Online & Telephone Support for free throughout your Company’s active years
Web authentication code for updating Companies House records
Community Interest Companies (CICs): The Basics
CIC stands for Community Interest Company. It refers to a business organization that has social objectives. This means all the assets of the company, including the annual profit, are for the purpose of serving the public. However, CICs are not charities. The legislation of a CIC states that the owner can earn a salary while managing the business.
Community Interest Companies: The Features
First of all, CICs are free to engage in any trading activity as per the usual regulatory restrictions.
CICs are also allowed to pay market rates for the skills or abilities of the directors, unlike charities. This feature helps a CIC to find the most efficient employees.
Social Investment Tax Relief (SITR) is something the donors who provide CICs with debt and equity funding are eligible to apply.
Profit and interest are always provided to investors. This is again subject to distributable funds of up to 35%
CICs can issue performance-related loans as well. The loan pays interest depending on the truing results. The interest is usually 20% which is a reduced value.
Features of a CIC Limited by Guarantee:
Every member is entitled to one vote regardless of any regulations.
This includes no owners or shareholder, only the members
LGBs do not include any share structures, none are eligible for any dividends
Every LGB is supported by funding providers and special grants.
Features of a CIC Limited by Shares:
The voting structure depends on the number of shares held by each member
Dividends (subject to dividend limit) are easy to pay
Issuing dates is easier in return for capital
Having a share structure is essential for the CIC to have a holding company or charity
CIC Regulator Approval
Getting approval of the CIC Regulator is the first step for a colony to be legally considered a CIC. The regulator is charged with the responsibility of making sure to include a provision of asset lock in the Articles of Association.
What our service is all about
House cognize have moved onto a new approach of processing CICs. If the number of participants does not exceed 6 with no corporate involvement (LTD or LBG), registration should not take more than one week.
The time required will greatly depend on how fast we get your inputs after placing an order to our queries regarding additional information. We always ensure to keep you updated about our application's status. The new CIC ordering system will apply to applications with less than 5 members - founders, guarantors, and directors included. This can take anywhere between 3 to 4 weeks if the number of members is more than 5. Once you place your order, you'll be receiving an email requesting additional information necessary for the incorporation of your company.
Every director needs to sign these sets of documents and also provide the mentioned information -
A simple introduction to the group that you're helping out
Details of a planned schedule of activities of your newly formed company
How does your company help out the society and what are the advantages of the related activities
We can always assist in selecting and modifying the right Articles of Association fit for your venture. You can select any of these five models.
Model 1 is used when:
The company/brand is defined by a guarantee
Every director is also holding a CIC membership
Every participant is a CIC admin
Model 2 is used when:
The company/brand is defined by a guarantee
The number of members of the CIC exceeds the number of Directors
Model 3 is used when:
A business is share-limited along with the director being a corporate shareholder
All shareholders are directors
Dividends are laid out to only a stipulated body of money
Model 4 is for use when:
The business of limited by the number of shares
The number of shareholders exceeds the numbers of administrator in the organization
Only asset-locked entities are credited dividends
Model 5 is suitable for use when:
It is a business limited by the number of shares
The number is shareholders are more than the number of listed administrators
Dividends are credited based on a predefined pool of assets and shareholders.