Three application forms you need to complete when setting up a CIC ✅
The process to set up a Community Interest Company has got easier over the years since the CIC structure was first introduced in the UK back in 2005. Since then, great strides have been made. For example, until 2020, CICs had to still be created via paper forms that needed to be posted to the Office of the Regulator of Community Interest Companies (ORCIC).
So, what are the 3 applications and forms that every new CIC will need to submit as part of the set up process? We’ve put this tidy little guide together to help you understand what you will need to do in order to get things off to the right start.
Incorporation Form to Become a Company
This one was perhaps a bit predictable, especially because we mentioned incorporations in the first paragraph of this article. But yes, a CIC will still need to go through the usual application process to become a limited company. This can be done online through the Companies House website. Alternatively, you can find a formation agent [include a link to formation agents register] who can do this on your behalf for a relatively small fee.
Before making this application, you should also check a few things such as:
✅ Whether you want to be limited by shares or limited by guarantee
✅ How much share capital you want to start with (if limited by shares)
✅ If your proposed company name is already being used by another company
Once you have determined these and any additional considerations, you should be ready to start the process. It’s relatively simple to do this online and only costs around £12.
Incorporation Form for CICs
However, there is a key consideration to be aware of. The key consideration depends on whether you want to convert an existing limited company into a CIC, or if the CIC will be a completely new business.
If you want to convert an existing company into a CIC, then you will need to complete the ‘CIC37’ Declarations on Conversion to a Community Interest Company form.
If you want to set up a completely new CIC, then you will need to complete the ‘CIC36’ Declarations on Formation of a Community Interest Company form.
There is a small additional fee to pay when setting up a CIC.
Registration for Corporation Tax
When you register any company, you also need to inform HMRC that the company has been set up. They will use this information to issue you with Corporation Tax Returns (also known as a CT600) on an annual basis as they become due.
There is a way to request Companies House to also register you for corporation tax as part of the Companies House formation process. However, this may not always be appropriate in cases where your CIC will not begin trading until a certain date after the CIC has been incorporated.