The new structure allows social enterprises to register as limited companies giving them a separate legal identity from their founders. Information for community groups about choosing a bank and opening an account. 1. Like all other limited companies, CICs must comply with company law as well as other specific legal requirements. Co-operative. 8.1.2. A Community Interest Company (CIC) is an enterprise set up to make a profit for the benefit of the community. Annual reporting requirements A community interest company (CIC) is required to prepare and deliver annually, to the Registrar of Companies: • accounts; • a CIC Report with a £15 filing fee (see Chapter 4); • an Annual return with a £15 filing fee (see Chapter 8.2 below). The CIC has the flexibility of the familiar company form, and access to a range of financing options, so may be appropriate for those working for a social purpose. Legal structures for social enterprises. Want to find a great new way to boost the funds available to you as a Community Interest Company? You also need a bank account in order to apply for grants, and should have … I have found that there isn't a lot of guidance that really helps with the practicalities of setting up and runnning such an entity. CICs were developed to address the lack of a legal vehicle for non-charitable social enterprises across the UK. Company Names. up to date. You should ensure that the company name ends with ‘CIC’, ‘community interest company’, ‘community interest public limited company’ or ‘community interest plc’. A Community Interest Company must be set up and run for the benefit of the community. The 2014 Act requires a community benefit society to “carry on a business, industry or trade” that is “being, or intended to be, conducted for the benefit of the community”. Our nation’s museums and heritage icons are not normally managed by not-for-profit social enterprises. Government Community Interest Company pages. You also need to include a community interest statement which must be approved by the CIC regulator at the time of incorporation. As their primary purpose is to provide benefits to the community, rather than to the individuals who own, run or work in them. It was called a CIC or Community Interest Company. The main reason for a charity, community project, etc., to be a company limited by guarantee is to protect the people running the company from personal liability for the company's debts, just as a business may be set up as a company limited by shares for the same reason. Guidance on setting up a Community Interest Company (CIC) Factsheet 11: Social enterprise – Social enterprises are businesses which have a clear social and/or environmental mission, which generates the majority of their income through trade and reinvest the most of their profits to tackle the problems they were set up to address. Category: Leading your organisation . Once this is done, you can begin to receive donations through our service. You might also need a Deposit account if you are likely to hold spare funds. We can set up an automatic transfer to move money between accounts, to maximise your spare funds; Any balances over £85,000 are not covered by the Financial Services Compensation Scheme Check your proposed company name in the company name availability checker. The following structures are incorporated: Charitable Incorporated Organisation; Company limited by guarantee (including Community Interest Company) Community Benefit Society; Cooperative Society What would be an effective form of corporate governance for a large international trading organisation would be quite inappropriate for a small CIC formed, say, to hold the assets of another community organisation. If you want to set up a company that intends to carry out work for the benefit of the community, a CIC can apply to become incorporated once they have been approved by the CIC regulator. They take longer to set up, require more ongoing work to keep running, and are more likely to incur costs for services from accountants and solicitors. Setting Up a Community Interest Company CIC. Register your Community Interest Company using the online incorporation process. Customer Donation Fund. It is hoped and expected that Community Interest Companies (CICs) will be formed for a wide range of purposes and will vary in size accordingly. The purpose of a community benefit society is to serve the broader interests of the community, in contrast to co-operative societies that serve the interests of members. 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. CICs can be limited by guarantee, by shares or operate as a Plc. Register your Community Interest Company. Level: Basic. Useful resources to help you with your Community Fibre Partnership . 8.1.1. The available structures are: * Unincorporated association * Limited company (shares or guarantee) * Community interest company * Community benefit society * Comparison between a registered society and a limited company. The CIC Regulator's … Most ordinary companies, even those that provide benefits to the community, are set up and run mainly for the benefit of their own members and employees. Information about CICs can be accessed on the website of the CIC Regulator. To set up a CIC you need to register with Companies House much like you would for a normal limited company. Cash deposits will be credited the same day and will benefit from immediate access to cleared funds. However, you will need to think about some key issues first, to make sure you're doing the right thing for you and your social enterprise. But there are a number of complex HR challenges, as Lance Hobbs explains. The CIC regulator will also monitor and enforce the rules. Setting up as a Community Interest Company. Mostly, they’re managed by the […] Community Interest Companies (CICs) are limited companies that exist to provide benefits to a community, or a specific section of a community. Community Interest Companies (CICs) are limited companies, with special additional features, created for the use of people who want to conduct a business or other activity for community benefit, and not purely for private advantage. It offers free monthly statements to help monitor the account. More about the account. The account is simple to set up, arrange additional signatories and set up direct debits. Community Interest Companies (CICs) are becoming a more popular option for running heritage sites or similar organisations transferring out of local authority control. Setting up … The Community Directplus account provides Registered Charities, Community Interest Companies, Co-operatives and Credit Unions an ethical way to bank for free. Becoming a Community Interest Company (CIC) is an exciting step forward for groups or organisations that want to be a business and have social impact. Community Interest Companies (CICs) are becoming a more popular option for running heritage sites or similar organisations transferring out of local authority control. Ask if your activity or community of benefit will be of interest to them and find out any basic criteria that they look for, such as a minimum number of directors do not try blanket emailing. Q&A: Setting up a Community Interest Company Tom Pratt, The Guardian 03.12.09. A registered charity, a co–operative or community benefit society registered with the FCA, a credit union or a community interest company; and; Your account must not exceed any one of the following annual account limits: credit turnover exceeds £1million, deposit more than £100,000 in cash or deposit more than 5,000 cheques. CICs first appeared in 2005 and were designed to address the lack of non-charitable businesses or community-based companies. This is the start of a blog for those of you who are interested in setting up and running community organizations and, in particular, a community interest company (CIC) - hybrid commercial/community organization. The Community Interest Statement should be drafted taking into consideration the purposes for which the company is set up, the range of activities which it will undertake in order to promote these purposes, and the sections of the community which the CIC is intended to benefit. July 2016 Introduction Community Interest Companies (CICs) were introduced under the Community Interest Company Regulations 2005 to provide a new type of limited company legal structure for non-charitable social enterprises. Download the Government's guide on setting up a Community Interest Company. A CIC can only be registered with the consent of the Community Interest Companies Regulator. Community Interest Company (limited by guarantee) This guide sets out the main legislative and regulatory information to be aware of when setting up a community interest company (limited by guarantee). CICs (Community Interest Companies) and charities are both legal structures that can be used if you wish to set up a social enterprise. 1 Use Form IN01 . Most community groups need to have a bank account in the name of the group. But there are a number of complex HR challenges, as Lance Hobbs explains. However CICs are different. 'Well, we appear to be arriving!' 21 January 2019 A Community Interest Company (a ' CIC' ) is a corporate vehicle which was introduced under companies legislation in 2005, specifically for social enterprises and/or 'not for profit' projects. It is important for keeping track of your group’s money and making sure it does not get mixed up with individuals’ money. Because of this additional step, CIC’s cannot be set up using an online formation service and must be done using a paper application. How to set up a limited company, appoint directors and shareholders or guarantors, and register for tax. Published 2 August 2013 Last updated 31 March 2017 — see all updates Download the guide. Using GoRaise is simple for CIC’s and it makes fundraising easy. The Business current account does not pay interest on balances. For a comprehensive guide to the range of legal structures available to those setting up a co-operative, please consult our Simply Legal publication. Bank accounts for community groups. The Credit Union Account offers free day-to-day business banking to organisations with a turnover under £3 million per year. Available since 2005, there are now over 3,100. The application must comply with CIC legislation as well as the usual rules for registration of a company. Our nation’s museums and heritage icons are not normally managed by not-for-profit social enterprises. So, what is a Community Interest Company (CIC) and how is it connected with social enterprise? Funds available to you as a Plc connected with social enterprise, the Guardian 03.12.09 to donations! 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