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Converting to a Community Interest Company (CIC)

Overview
Converting a non-charitable company to a CIC
Converting a charity to a CIC
Converting an IPS to a CIC
Our services
Useful Links
Related topics

Overview

Increasingly, organisations which have been set up to benefit the community - but which are not already Community Interest Companies - are looking to convert in order to benefit from CIC status.

Converting to a CIC is sometimes a complicated process, and one which differs depending on the type of organisation which is looking to convert.

Converting a non-charitable company to a CIC

In order to convert an existing company, which is not a charity, to a CIC there are a variety of steps which need to be taken and documents which need to be delivered. The company, first, needs to pass a number of special resolutions in order to adopt new articles, change its name and to declare its intent to become a CIC. Of course, the new articles themselves must be drafted, including a suitable objects clause and containing the specific provisions required by the CIC Regulator. A community interest statement must also be completed and sent with the rest of the documents.

Converting a charity to a CIC

To convert to a CIC, a charity must already be incorporated (i.e. a 'charitable company'). Unincorporated associations, including charitable trusts, cannot convert to CIC status - though there is provision for an existing CIC to become, in effect, a charity trustee.

If the charity in question is a charitable company, then (with the exception of Northern Irish charities) it should be able to convert to become a CIC. (Note though that an organisation cannot be a CIC and a charity simultaneously - it must be one or the other. There is nothing, though, to stop a CIC being a subsidiary of a charitable company.) The conversion process is similar to that described above, except that prior written consent is required from the Charity Commission.

Converting an IPS to a CIC

This is a two-stage process wherein the existing IPS is first converted into an 'ordinary' company, and that, in turn, is converted to a CIC. This is a complicated procedure, and requires discussion with the Charity Commission, as well as consent from the FSA in their role as the regulator of IPSs. When the IPS has been converted to a 'normal' company, the procedure is much the same as described above, and the application to convert will still be subject to the fulfilment of Companies House and CIC regulatory requirements.

Our services

We are able to help any type of organisation to convert to CIC status, provided that it is possible legally to do so. For further information, please see our prices page or contact us.

Useful links

The CIC Regulator
The Charity Commission
The Financial Services Authority's pages on Mutual Societies

Related topics

Community Interest Companies
Charitable companies
Industrial and Provident Societies

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