unit 7 homework
CIC
CIC means a community interest company is a limited company which exists to help benefit a community or a view with an actual social purpose towards it rather than just to make money for the shareholders. CIC is registered with Companies House but it is the CIC Regulator who then decides whether an organisation passses tthe community interest test. CIC's can either be private limited company that involves lots of shares or it can be a public limited company that is guarenteed by a private limited company.
There are many benefits and drawbakcs for a CIC company.
One advantage would be that you have limited liablity and protection inside of the company as then this will provide an inportant part of security for the buisness it also provides some protection as well for any assets that is then related to social enterprise which would then ot be available and would be held with the names of indivisuals.
Another advantage would be that they have acess to many different parts of finance as some donors would only give to charites and companies because of the protection these vechicles. Therefore, the access to finance whether is through private donors, grants or community development finance this will then lead to a social enterprise to then operate as a community interest company rather than a standard company.
The third advantage for a CIC company is the flexiblity of a limited company structure this structure forms the basis of a community interest company can then provide flexiblity to then help meet the needs of a indidvual organisations. A CIC set up as a company limited by shares can then issue shares to raise capital including the option of employing muliple share classes. A CIC is limted by shares will then also to pay dividends up to a dividend which could then be attractive. The last advantage of CIC is that it has it's own legal status and will then continue in operation and is able to then benefit for the company.
Drawbacks for a CIC company
In terms of a CIC company there are also many disadvantages. As it is a limited company one disadvantage would be ongoing company compliance there are also a number of ongoing responsiblites inside this type of company that you have to observe. Some form of accounts will then be filled in the next upcoming years. There is also a requirement to create and maintain all of the company registers and file information with Companies House including an annual statement and event based submissions. A CIC that has to be registered in Companies House is a bad thing as in order for the company to be established it has to be reviewed and approved by the regulator of the company this is then bad as it could take some time to be done.
Another disadvantage would be lack of tax breaks available for the company as the CIC do not
CIC means a community interest company is a limited company which exists to help benefit a community or a view with an actual social purpose towards it rather than just to make money for the shareholders. CIC is registered with Companies House but it is the CIC Regulator who then decides whether an organisation passses tthe community interest test. CIC's can either be private limited company that involves lots of shares or it can be a public limited company that is guarenteed by a private limited company.
There are many benefits and drawbakcs for a CIC company.
One advantage would be that you have limited liablity and protection inside of the company as then this will provide an inportant part of security for the buisness it also provides some protection as well for any assets that is then related to social enterprise which would then ot be available and would be held with the names of indivisuals.
Another advantage would be that they have acess to many different parts of finance as some donors would only give to charites and companies because of the protection these vechicles. Therefore, the access to finance whether is through private donors, grants or community development finance this will then lead to a social enterprise to then operate as a community interest company rather than a standard company.
The third advantage for a CIC company is the flexiblity of a limited company structure this structure forms the basis of a community interest company can then provide flexiblity to then help meet the needs of a indidvual organisations. A CIC set up as a company limited by shares can then issue shares to raise capital including the option of employing muliple share classes. A CIC is limted by shares will then also to pay dividends up to a dividend which could then be attractive. The last advantage of CIC is that it has it's own legal status and will then continue in operation and is able to then benefit for the company.
Drawbacks for a CIC company
In terms of a CIC company there are also many disadvantages. As it is a limited company one disadvantage would be ongoing company compliance there are also a number of ongoing responsiblites inside this type of company that you have to observe. Some form of accounts will then be filled in the next upcoming years. There is also a requirement to create and maintain all of the company registers and file information with Companies House including an annual statement and event based submissions. A CIC that has to be registered in Companies House is a bad thing as in order for the company to be established it has to be reviewed and approved by the regulator of the company this is then bad as it could take some time to be done.
Another disadvantage would be lack of tax breaks available for the company as the CIC do not
Comments
Post a Comment