Asset Lock and Dedication of Profits

A community interest company is, by nature, not-for-profit. This means that the profits of the company must be reinvested into the good work it has set out to do for the community (although directors can be paid for the work they do and shareholders can receive some dividends). Asset lock An ‘asset-locked body’ is an… Read more »

Aims, activities and benefits

When you register a CIC, charity or other company limited by guarantee, Companies House and/or the CIC Regulator will want to know what your aims are, what your activities will be, and who will benefit and how. You may already have a version of this written in a vision statement or constitution. Here are some… Read more »

Should my CIC be ‘limited by shares’ or ‘limited by guarantee’?

Registering as a company will protect you from financial risk. This means that if the company were to fail, you would only be liable for the amount you own in shares or the amount ‘guaranteed’. Make sure you make the right decision about whether your CIC will be limited by shares or by guarantee because… Read more »

Why register as a CIC rather than a charity?

Charities can only be established for charitable purposes, whereas a CIC can be established for any lawful purpose (apart from political causes) as long as its activities are carried out for the benefit of the community. Here’s more detail on the differences between a CIC and a charity: CIC Charity Recognised by funding bodies ✓… Read more »