Community Interest Company [CIC] Package

The Prime Formation ‘Community Interest Company Package’ is designed for those who wish to set up a business structure that helps communities, individuals or groups of people. A social enterprise is often set up with social, charitable or community-based objectives and can be operated through the mechanism of a Limited Company, Charity or a Charity Incorporated Organisation [CIO], Cooperative, Sole Trader or Business Partnership.

The Companies (Audit, Investigations and Community Enterprise) Act 2004 became the basis for the Community Interest Company [CIC] regulations 2005 which came to operation on the 1st of July 2005. The CIC regulations of 2005 provided the foundation, structure and legal framework for the establishment and operations of CICs.

Setting up a CIC

A CIC is a limited company specially created for the benefit of the community rather than for the sole and private benefit or interest of the shareholders and directors as is the case in a general commercial company.

The following requirements must be fulfilled before a CIC can be set up:

• A Community Interest Statement must be prepared to detail what the CIC intends to do
• An asset lock must be inserted in the Articles of Association stating that the company’s assets will be only be appropriated towards its social objectives. The asset lock provision is required in the process of setting limits to the money distributable to Shareholders.
• A Constitution must be drawn up detailing at length the legal provisions guiding the operation of the CIC. The CIC regulator has model constitutions [Articles of Association] which may be adopted.
• The CIC Regulator is solely responsible for the registration of CICs in the UK and all applications must be forwarded to him or her.
• Companies House Form IN01 for incorporating a Company must be completed detailing the name of the company, registered address, personal details of the directors, service address of directors, subscription shares acquired and nature of Persons of Significant Control [PSC]
• Declaration on Formation of a CIC Form CIC36 must be completed. The form sets out the CIC’s social mission or purpose and the stated activities to be undertaken to achieve it.

Other CIC Formation Variants

A CIC can be set up online or by post.

A CIC can be newly formed as a Community Interest Company or a Community Interest Public Limited Company [PLC]. Alternatively, a CIC can be formed by converting an existing Limited Company or Charitable Company to a CIC or vice versa. In other words, a CIC can be converted to a Charity or a Charity incorporated Organization [CIO].

Subject to the CIC Regulator review of the CIC registration application normally, it should take 2-3 weeks to register a CIC however this time frame is not guaranteed.

Our Fees

Prime Formations charge £145.00 plus VAT to incorporate a new CIC. Other charges apply if you wish to form a Community Interest PLC or convert a CIC to a CIO or vice versa.

The Process

Once you place an order for this service, we would send by email a CIC questionnaire detailing what we require in order to register the CIC. Once the CIC questionnaire is completed it should take 2-3 weeks on average to register the CIC.