Yes, it is possible but there is not much demand. A community interest company (CIC) that wishes to convert to a charitable company will have to have only charitable purposes. A CIC that became a charity in England, Wales or Scotland would no longer be subject to the community interest test and the Regulator.
Can a CIC convert to a charity?
From 1 September 2018 a CIC has been able to convert into a charitable incorporated organisation (CIO). … Unlike a charitable company, CIOs only need register with the Charity Commission. They do not need to and, in fact, cannot apply to be registered with Companies House.
Can you make money from a CIC?
There is a CIC limited by shares that is allowed to make a profit. … In fact the majority of CICs are limited by guarantee and are more genuinely non-profit in form.
Does CIC have to register with Charity Commission?
CICs are not charities and are regulated by the Regulator for Community Interest Companies (RCIC), not the Commission. … This charitable trust must be registered, if it meets the minimum requirements. A charitable company that has converted to a CIC must be removed from the Register as it is no longer a charity.
Does a CIC need trustees?
A CIC does not have a board of trustees. This is in contrast to a charity which operates as a company limited by guarantee. … A CIC is subject to the regulation of its community purpose and the use of its assets.
Can a CIC pay its directors?
A major advantage of CICs is that their directors can be paid a salary, which means that the founders of the CIC can retain strategic control of the enterprise by sitting on the board as paid directors.
Can a CIC own property?
The CIC or charity can own property, and rent space to the other. … The charity would be eligible for a lot more trusts and foundations that only give grants to registered charities, as well as being eligible for gift aid on donations.
How much tax does a CIC pay?
Unlike a charity, a CIC is not entitled to any specific corporation tax exemptions. Accordingly, a CIC’s profits are fully taxable unless it can be shown that the terms of the contract are such that, in tax law, the organisation does not amount to a taxable trade.
Do CIC companies pay tax?
CICs are taxed in the same way as normal companies. They are subject to corporation tax and VAT and a CIC that makes donations to charity can deduct this as a charge when calculating its profit for corporation tax purposes.
Can a CIC have employees?
Like all other companies CICs will have a number of stakeholders such as members, directors, employees, customers etc, but it is an important principle that a CIC should have particular regard to its major stakeholder i.e. the community, which is intended to benefit from its activities.
How much is CIC registration?
Enabling you to register your company name with Companies House, register with HMRC for Corporation Tax and gain approval from the CIC Regulator to form a CIC , all at the same time. The filing fee for an online incorporation for a CIC is £27 and is payable by card or PayPal.