Question: Can A CIC Apply For Funding?

How does a CIC make money?

CLGs usually raise funds through grants or donations, rather than from shareholders.

Details of the regulations and requirements concerning shares and share capital are available from Companies House.

Each CIC that is a company limited by shares divides its share capital into units or shares of fixed amounts..

Do CIC companies pay tax?

Does a community interest company (CIC) Pay Tax? A community interest company (Or CIC) is liable to Corporation tax as a company. This applies to all it’s Trading profits, Investment Income and any gains. It’s an asset locked body that must ensure any profits/assets are used for the benefit of the community.

How do I start my own CIC business?

CIC business activities: forms and step-by-step guidelines1.1 Register your CIC online with Companies House. … 2.1 Complete form IN01: application to register a company. … 2.2 Complete form CIC36: application to form a CIC. … 2.3 Create the memorandum and articles of association. … 2.4 Send the documents and fee. … 3.1 Complete form IN01: application to register a company.More items…•

What are the benefits of a CIC?

Compared to a standard company, a CIC specifically provides several advantages:1 A clear commitment to social goals. … 2 Access to certain forms of finance. … 3 Limited liability and protection. … 4 Familiarity. … 5 Flexibility of limited company structure. … 6 Continuity of purpose. … 7 Quicker to set up.More items…•

How long does it take to become a CIC?

The slowest is the Community Interest Company (CIC) because it has to pass through the normal Companies House procedures AND be checked by the CIC Regulator’s office. Furthermore, CICs cannot be formed electronically. We have to submit documents by post. So it can take up to four weeks to complete the process.

How many directors does a CIC need?

two directorsNumber of directors A CIC limited by shares can have just one director and shareholder. A CIC limited by guarantee should have at least two directors (trustees). Some banks or funding bodies will prefer there to be at least three.

What is the difference between a CIC and a charity?

Charities can claim relief on most income and gain, and on profits from some activities. They can also claim back tax previously paid on any income they receive – such as the income tax paid on donations. By contrast, CICs don’t get any tax breaks, even if their objects are entirely charitable.

Can you sell a CIC company?

They can be transferred to another asset-locked organisation in some cases, such as another CIC or a charity. If your CIC is limited by shares, those shares may be able to be sold on for a profit, but it’s a lot more complicated to ‘sell’ a CIC than a standard company and may not generate the same level of returns.

Can a CIC pay its directors?

A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.

Can a CIC pay dividends?

CICs limited by shares are subject to a dividend cap. This means that 65% of all a CICs surplus profits must be used for community purpose and just 35% can be used to pay dividends to their shareholders.

How much does a CIC make?

CIC SalariesJob TitleSalarySenior Programmer/Analyst salaries – 1 salaries reportedCA$72,504/yrEmployment Counselor salaries – 1 salaries reportedCA$24/hrVice President salaries – 1 salaries reportedCA$123,633/yrPresident salaries – 1 salaries reportedCA$123,326/yr

Can I file CIC accounts online?

As a part of my ongoing commitment to digitise services for community interest companies (CICs), I am delighted to announce that a new online filing process for submitting certain types of CIC annual accounts went live on 2nd September 2019.

Does a CIC need an audit?

Do you need an audit? There isn’t a particular legal form for social enterprises, but they are typically companies and may also be a Community Interest Company (CIC). The general company rules apply. Under company legislation, a company that qualifies as small (see below) may be exempt from audit.

What is the difference between a CIO and CIC?

What is a CIO? Unlike a CIC, a CIO (or Charitable Incorporated Organisation) is a new legal structure introduced for non-profit organisations and charities. With a CIC, you need to apply to Companies House when registering. However, with a CIO, you only need to register with the Charity Commission.