Use Coddan to establish a CIC (community interest company) in London, Edinburgh of Belfast: the establishment of a CIC company (community interest company) can be an attractive option, but the process is difficult. Of course, you can do it yourself, but you can save time, confusion and trouble by enlisting the services of Coddan - let us help you with the red tape.
A community interest association is a legal entity, much like a limited company. The liabilities can be limited by guarantees or shares, with 75% of current community interest companies being limited by guarantees, and as long as the corporation has social objectives, it can operate in any industry or trading activity, unlike charities. There are few restrictions on directors' pay, too, which affords a number of advantages over a charity, but there are a number of obstacles in the way.
The community interest foundation must be approved by the Regulator. For that to happen, the company's articles of association must contain an asset lock provision, which prevents the community interest enterprise distributing profits to the shareholders or members. The asset lock means that the community interest enterprise cannot distribute the profits to the shareholders or members. This is in place to ensure that assets leftover if the company is dissolved are donated to another company that is also asset locked.
While the company isn't restricted in its activities, it must have clearly defined activities and its benefit to the community must be clearly demonstrated at the outset if it is to win the all-important approval. Coddan Formations Agent is practised masters at preparing the paperwork for a community interest company registration application, so we can help ensure that the regulator is satisfied. A rejection can cost you time and money, so it pays to invest in professional assistance in the planning stage.