Converting a Company into a CIC
A Private Limited Company (LTD) can be converted into a Community Interest Company (CIC) forSocial Enterprise purposes.
Being recognised as a Social Enterprise.
Any company can act in the community interest if the directors decide it should…
but funding bodies are rarely willing to support such activities unless they can see that the company is a not-for-profit organisation. If you are starting anew it is best to form your social enterprise company as a CIC in the first place. But, if you already have a company you can re-register as a Community Interest Company. The CIC format (Community Interest Company) is specifically intended for not-for-profit ventures; it is subject to a Regulator; and it is recognised by most funding bodies. CIC conversion is an option for people who already own a company. If you don’t have this option you can form a new CIC.
Charities must be established exclusively for charitable purposes, but a Community Interest Company can be established for any lawful purpose as long as its activities are carried on for the benefit of the community.
To register today contact us on 0117 370 2725.
Limited by Shares or by Limited by Guarantee
There are two types of CIC but, if you already have a company, you have already determined which type you will have. If your existing company has Shareholders and Share Capital then it will convert into a Community Interest Company Limited by Shares. if your existing company has Trustees (who put up a cash Guarantee instead of owning Shares) then it will convert into a Community Interest Company Limited by Guarantee. Remember to tell us which type you have when you complete our order Form.
How to Order
Complete our Order Form and tell us your existing company name and incorporation number, the names and addresses of the directors and other key contacts and your company’s aims (see below). Your company name will be changed from ….LTD to ….CIC (or Community Interest Company). You can opt to change the name completely, but it must end in CIC or Community Interest Company.
Based on the information you give us, we will prepare the necessary Written Resolution to change your Company name and registered status. We will prepare new constitutional documents (Memorandum and Articles of Association). And we will prepare all the other formes required and follow the whole process through with Companies House and the CIC Regulator’s office. all you need to do is to complete our Order Form.
Your aims as a CIC
Our job in converting your company to a CIC is to turn your ideas and plans into legal documents that will be accepted for formal re-registration as a Community Interest Company. Make notes on your vision, aims and intentions and tell us about it in plain English. We can offer suggestions, but it’s your ideas that matter.
The constitutional documents for your CIC (called Memorandum & Articles of Association) must state the Aims of the organisation. The existing memorandum & Articles of your Private limited Company will not to; they will have to be replaced. But we can help you create the right format provided you tell us what your organisation intends to do (its aims). Only you can say what you intend, but we have put together some examples to show how it is done.
If your organisation plans to do any work with young or vulnerable people it must have a procedure for obtaining proper criminal record checks. The CIC Regulator will ask about that, so avoid delays to the re-registration process by making sure you have the answer ready. Tell us about your procedures for obtaining CRB checks and which agency you use to make those checks.
CIC regulation is strict
but not as strict as it is for a registered charity. This relatively new company type is increasingly recognised by funding bodies as a well-regulated structure for not-for-profit ventures. The CIC format was specifically designed to provide a purpose-built legal framework and a “brand” identity for social enterprises that want to adopt the limited company form