I want to set up a C.I.C.

S.D.Blake

Hi,

I received funding today to set up a CIC (community interest company)

I need to register it with Company’s House but I am getting stuck with the questions and I’m unable to find the answers!

Is anybody to kind enough to help?

I.e. I don’t want to profit from the business, I just want to be paid minimum wage (where possible) and put the profit back into the business to be used for bills, rent, new products, stock and staff wages (I want to be able to employ young people and job seekers who are looking for work experience and a reference)

pramsay13

What is your question(s).

S.D.Blake

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Pennywise

That looks like the normal company formation process. There's separate application to set up a CIC. I don't think the normal formation process is suitable as you'll normally need special/different memorandum and articles of association for a CIC whereas the standard company formation adopts the standard/basic memo & arts which won't be suitable. I think you'd be best to engage a company formation agent rather than attempt the DIY route.

S.D.Blake

This is the bit I am getting stuck on

You're about to set up the ‘Persons with Significant Control’ over the company
A person with significant control (PSC) is an individual that has one or more of the following:

the right to share more than 25% of the company's profits
more than 25% of the company’s voting rights
the right to appoint or remove directors
the right to make decisions or influence decisions that affect the company
If none of the guarantors in the company have a right to share more than 25% of its profits or own more than 25% of the voting rights, the company may not have a PSC. You still need to complete the section to confirm this.

I don't want to take home any profit, I want the money to go back into the business

pramsay13

You can still be a PSC even without taking home any profit.
This is just the first step, the three steps are:
"register your company name with Companies House, register with HMRC for Corporation Tax and gain approval from the CIC Regulator to form a CIC.

00ec25

as pennywise says, are you on the right form?


https://www.gov.uk/government/publications/community-interest-companies-business-activities

pramsay13

00ec25 wrote: »

as pennywise says, are you on the right form?


https://www.gov.uk/government/publications/community-interest-companies-business-activities

It is the right form, you just have to go through the form for setting up a limited company first, then there is another part for setting up a CIC.

Pennywise

pramsay13 wrote: »

It is the right form, you just have to go through the form for setting up a limited company first, then there is another part for setting up a CIC.

As I said, a CIC needs different Memo and Arts which isn't what is provided if you just go through the £12 Companies House do it yourself system which is aimed at a simple bog standard company formation, not something more specialised like a CIC. If you carry on with that, you'll end up having to change the memo & arts later before you can apply for the CIC. Do you even have access to the special Memo & Arts needed for a CIC?

Mega

I was going to post a Government guidance video about setting up a C.I.C. but I am not allowed to. So you'll have to search youtube for the following

CIC Incorporations: The New Online Process

You do need to watch it, as the advice on here is not appropriate, and is both far too complicated and frightening. You can now do all the steps for starting a C.I.C as a C.I.C. You do not need to 'register' as a company separately, as that is now incorporated into the application.

You do need to understand the difference between kinds of companies, and some other things, but they are all explained as you go through the application; which you can save and return to.

antrobus

The official guidance to setting up a CIC is here;
https://www.gov.uk/government/publications/community-interest-companies-business-activities/cic-business-activities-forms-and-step-by-step-guidelines

together with a link to the aforementioned webinar on the online process.

Or it can be done by post.