Community Interest Companies

Share or Guarantee

  • Available in Share or Guarantee formats.
  • Depending on the proposed size of the Community Interest Company there are two guarantee constitutions to choose from. Depending on the size of the CIC and the distribution of dividends there are four share constitutions to choose from.

Requirements

  • All Memorandum and articles are available from First Corporate upon request. They are not as yet available in electronic format.
  • Form IN01 , and supporting form CIC36 outlining the company’s benefit to the community to be signed by the directors of the company.
  • The Directors must subscribe to the Memorandum and Articles
  • Corporate officers permitted. Nominee officers not allowed.
  • Minimum directors one plus a company secretary. Two directors for a PLC
  • An independent regulator (CREG) decides if the proposed community activity detailed on the CIC 36 satisfies CIC regulations. If approved Companies House incorporate the company.
  • Share constitutions to have cap on dividends embodied into articles. This cap is variable and detailed in the Act.

Rules

  • Existing Limited companies can convert to a CIC using Form CIC37 and resolution.
  • Charities can form a CIC as a separate trading company for the benefit of that Charity
  • Any Charity (subject to the Charity Commissioners approval) can convert to a CIC however as a result will lose its Tax benefits.
  • Special addendum to accompany annual accounts will detail how the company has benefited the community in the previous trading year.

How We Can Help

  • Formation fees from First corporate £155.00 inc. VAT
  • Package: Loose Leaf Register, eight bound copies of the Memorandum and Articles, and completed First Board Minutes.

For more information please contact Graham Stephens:graham@fcls.co.uk.