Community Interest Co
A Community Interest Company (CIC) is a relatively recent form of social enterprise organisation which was established as an alternative to registration as a charity, particularly for entities involved in public sector initiatives. CICs have to be registered with the CIC Regulator and their constitutions have to follow statutory patterns. CICs cannot be charities. In many respects CICs are like normal Companies – the essential differences being their supervision by the CIC Regulator and the presence of ‘Asset Lock’ provisions in their constitution (these prevent their assets being appropriated by directors, employees or shareholders).
The benefits of establishing a CIC include:
- Goodwill and possible support from informed social enterprise circles, particularly in the public sector It is commonly believed that CICs are particularly well places to bid for public sector supply contracts
- Asset lock system will be attractive to those wishing to ensure that their endowments stay where they are intended to remain
- Conventional legal structure of a limited liability company is familiar and favourable toward members, directors, employees and contracting partners
Mounteney Solicitors’ CIC Formation Schemes is particularly suited to the many ministries and groups who wish to establish new CICs on a low budget. The Christian ethos of our firm often resonates with such groups. We can also convert existing entities into CICs – but that is a more complex service that we provide through the traditional channel – please Contact Us to discuss the conversion options, if of interest.
When deciding to use our CIC Formation Service, you should bear in mind that:
- CIC is not yet a widely recognised brand - it is likely that people will question it
- Asset Lock does affect decision on property, dividends and officer pay
- There is intended to be the extra administration of the annual CIC report (although we have no experience of the CIC Regulator enforcing the requirement for the report)
Included in our CIC incorporation service is the first year’s Company Secretarial Service (if required). You may wish also to consider our Charity Formation product, and our guide Charity and Social Enterprise.
Mounteney Solicitors have established numerous CICs; our CIC Formation service (that can be bought on the internet) is intended to be an economical method of establishing a new CIC.
How long will it take?
It usually takes about 2 weeks for our work to conclude, in urgent cases, this can be reduced by a few days at a small extra charge.
Our CIC Formation product comprises; taking your instructions, establishing the CIC, first year’s Company Secretarial Service, if required and a Guidance service.
Our work will be charged at a fixed fee of £275 including VAT. This includes the Government registration fee of £35.
Our fee applies regardless of how much work we actually do. In some cases this may mean we’ll get relatively better paid for doing less work than in other cases, in which the fixed fee will barely cover our costs. This is simply the nature of the mutual gamble between a solicitor and their client when they fix a fee.
More detail of all these matters will be outlined in our retainer letter which you will be able to review before you engage us, after pressing the “Buy” button on the website.
If you have any questions or require any further information, please don’t hesitate to Contact Us.