As all CIOs have to register, a CIO cannot be an exempt charity. … All CIOs must submit an annual return and accounts to the Charity Commission, regardless of the income of the CIO. CIOs must keep a register of members and a register of trustees.
Is a CIO a registered charity?
A CIO is a charity that is just regulated by Charity Commission, rather than most charities that are set up as charitable companies which are regulated by Charity Commission and Companies House.
Do CIO have to register with HMRC?
Charitable incorporated organisation ( CIO )
You don’t need to register with Companies House. Trustees have limited or no liability for CIO debts or liabilities.
Is a CIO not for profit?
Charitable incorporated organisation (CIO)
This is a charity that is only regulated by the Charity Commission, rather than both the charity commission and companies house (which would make it a ‘charitable company’ – read more below).
What is difference between charity and CIO?
CLGs have a separate legal identity, and are liable for their own debts. Charitable Incorporated Organisations (CIO) are formed by founding members applying to the Charity Commission for registration and incorporation, with a constitution based on one of two model documents prepared by the Commission.
Can a CIO have directors?
CIO members still have key rights in law and under the Constitution and trustees are still responsible for managing the organisation (note that trustees for CIOs will only be trustees, they will not have the dual role of Company Director).
Can directors of a CIO be paid?
usually cannot pay its directors/managers/trustees; can only apply its money and assets to carry out its charitable purposes; and. must operate in a way that is in the best interests of the charity.
Do you need a bank account to set up a CIO?
You will need a bank account BEFORE you register with the Charity Commission but the bank will probably require you to have a constitution. … There are different types of bank or building society: High street banks/building societies – many offer free accounts for small charities.
How long does it take to set up a CIO?
Registering a CIO is a slow process. Whereas it takes a week or less to register a company at Companies House – and it can start operating immediately – the Charity Commission predicts that it will take around 40 days to make a decision about registering a CIO, which cannot operate until a decision has been made.
Can a CIO employ staff?
A CIO is a corporate body (like a company) that can own property, employ staff and enter into other contracts in its own name (rather than in the names of the trustees). … All CIOs must register with the Commission, regardless of their income.
What are the advantages of a CIO?
The CIO structure offers important benefits of having separate legal personality and trustee limited liability, and can be seen to be cheaper and easier to set up and administer than a company limited by guarantee.
Can a CIO have one trustee?
CIOs and CLGs
CLG and CIO are both “corporate” entities, meaning that they are each a legal ‘person’ separate to their Trustees, and can enter into contracts in their own name.
Should I set up a CIC or CIO?
Unlike a CIC, a CIO (or Charitable Incorporated Organisation) is a new legal structure introduced for non-profit organisations and charities. With a CIC, you need to apply to Companies House when registering. However, with a CIO, you only need to register with the Charity Commission.