Open a CIC company or establish a charitable company: if the profits from your business are going to benefit the community (or meet a particular need within the community), then there could be advantages in using a CIC (community interest enterprise) structure for your venture. Not only do community interest companies or charitable companies enjoy tax advantages, there are also fewer reporting requirements and organisations are able to operate in a less legally constrained manner than regular corporations. Read on to discover what's needed in order to set-up a CIC (community interest company) and how Coddan can help.
Community interest statement - because of the charitable nature of a community interest company, owners need to prepare a community interest statement as part of the registration process. This explains how the organisation will use its profits for the good of the community, rather than distributing them directly to shareholders. Wording this document correctly is vital for community interest company success, so it's worth contacting Coddan for some expert assistance in completing this piece of documentation appropriately.
An asset lock - to register a CIC company (community interest company), an asset lock also needs to be produced. This is a legally binding document which sets out how the company's assets will be used for philanthropic purposes and limits its ability to pass its profits to shareholders. Coddan has the experience necessary to produce an asset lock agreement that satisfies CIC criteria whilst still allowing corporate freedom.
Regulator of community interest companies - before a community interest company can become operational, it needs to be registered with the Regulator of Community Interest Companies. We can ensure that all the relevant paperwork is completed to a high standard. If required, they can also provide the details of a UK contact point should the Regulator (or any other official bodies) require further information.