Forming Community Interest Companies (CICs): Guidelines
Setting Up a Community Interest Company (CIC) in the UK: A Step-by-Step Guide
If you're considering setting up a Community Interest Company (CIC) in the UK, here's a comprehensive guide to help you navigate the process.
First and foremost, choosing a unique name for your CIC is essential. The name must comply with CIC naming rules, such as including "Community Interest Company" or "CIC" in the name. Any sensitive words may require additional authorization.
Next, you'll need to complete Form IN01, which is mandatory for registration with Companies House. This form collects details like the company name and type (CIC), registered office address, details of directors and shareholders, and the statement of capital and share structure. The IN01 form can be completed online via approved company formation agents, the Companies House web service, or by post.
Preparing the CIC Constitution, or articles of association, is also crucial. CICs must include special clauses in their articles that ensure the company exists to benefit the community and that assets are protected accordingly. The CIC Regulator provides a model constitution, or templates can be adapted to meet CIC requirements.
Once you've completed the IN01 form and the CIC Constitution, you'll need to submit Form CIC36, the Community Interest Statement. This form explains how the company will benefit the community and meet the CIC Regulator’s requirements, ensuring the community interest test is met.
The registration fee for CIC incorporation is payable to Companies House at the time of submission. Upon approval, Companies House issues a certificate confirming your CIC's legal formation and registration number.
After incorporation, you'll need to register for Corporation Tax, PAYE (if employing staff), VAT (if turnover threshold is met), and other applicable taxes.
The CIC Regulator oversees CICs in the UK to ensure compliance with community interest and asset lock requirements. Their contact details are usually provided on the official government website, and correspondence for CIC matters is addressed via Companies House. The Regulator is based in Cardiff, Wales but regulates CICs across the UK, including Scotland and Northern Ireland. For detailed inquiries, you can contact the CIC Regulator at [email protected] or by telephone at 029 2150 7420.
In summary, following these steps ensures your CIC is set up legally and meets the regulatory obligations specific to community interest companies. For more detailed guidance, you can visit the official government website or consult with company formation agents.
| Step | Details | |------------------------------|-----------------------------------------------------------------| | Company name | Unique, must comply with CIC naming rules | | Form IN01 | Application for registration at Companies House | | CIC Constitution | Articles of association with community interest and asset lock | | CIC36 Form | Community Interest Statement ensuring public benefit | | Registration fee | Paid to Companies House upon submission | | Certificate of Incorporation | Issued when registration is complete | | Register with HMRC | Corporation Tax, PAYE, VAT registrations post-incorporation | | CIC Regulator contact | Oversees CIC compliance, contact via Companies House / gov.uk |
In the process of setting up a Community Interest Company (CIC) in the UK, it's important to complete Form IN01, which collects details about the company name, registered office, directors, shareholders, and capital structure. After preparing the CIC Constitution, a unique CIC36 Form must be submitted to demonstrate how the company will benefit the community and meet the CIC Regulator’s requirements.
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