CIC Association

Serving Community Enterprise

Hi
I am Megan, I am setting up a CIC and I have no clue really on what it all means. I would like to offer Children activities in my community but as it grow I would then like to draw a income if possible. My questions are as follows.
I will be a Director I would like to know as soon director what salary could I draw and could you give me a example. So if I bring in £5000 a year what salary could I take ?
Can relatives be part of the CIC team my husband would like to help and I have a family friend?
Can a Director be from a different country as due to them just doing the administration duties?
I read you need three director if you need to apply for grants of that is the case could you just have directors to set up and add members later?
If you have at least 2 directors are you seeing up as a limited company buy guarantors.
The articles I find hard what is assest lock ?
I am looking at a lego club ,art club, cooking things like that for kids and will be hiring a premises.
I would also like to know if there are any template around to use for kids activities I have looked but can not find any.

Thank you sorry for the long message.

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Hi Megan

I was in your position last year and I couldn't find any help anywhere on the web about how you set one of these up. Lot's of people give business advice as if you already know how to set up a company, but I hadn't got a clue how to fill those damn forms in. It took me about 3 months to complete the forms and get the company set up.

Basically you are setting up a limited company with a slight difference. You have to fill in the limited company forms and an extra CIC form to qualify as a CIC.

You can either set up as a company limited by shares or by guarantee. I set mine up limited by shares but I think the advice from here is to set it up as limited by guarantee if you want to apply for funding. I'm still going to apply for funding though.

You can pay yourself a salary as a director/employee of the company just like any other company can pay salaries. As long as it's reasonable.

Relatives can be directors, employees, volunteers as you wish. one thing you should consider is that if you want to apply for funding, you should have 3 non-related bank signatories. They don't need to be directors, I have myself, another director and an authorised person (non-director) as signatories for our bank account.

The asset lock applies to assets of the company. If you cease trading, you can't take the assets (money, items) for yourself, you have to transfer them to a charity or other asset locked body.

If you pay dividends, you can only pay out 30% of the profits and the rest has to be re-invested into the company.

I'm not sure about the director being from a different country.

I hope that helps.

Thank you Martin. just a question the memorandum article to you use it just as it is and just add in the companies name or do you have to like redo the memo . what I mean is like the one else the have on site says add in company name . the pages have red and black printing on do you leave it like that. as for asset lock where do you write it up in order for them to know what it's. like for instance I am starting a Lego club my only assest will be the Lego so will that be the lock asset . I will be rent a hall. so I don't have much.

Megan

If you don't know anything about them leave the memorandum & article as they are. You can't remove the red bits. Read through them to make sure you are aware of what you are agreeing to.

The asset lock will be in there in red. You don't need to list your assets.

Just a question did you use it as it was or did you changer this things.
Sorry for the questions.
I have a charity that want to offer me a start up but I need to be registered so need to sort it out as much as possible.
Thank you
Megan

Hi Megan

You can use them as they are but you should read through each section to make sure you agree with it and when you see something like this

"The objects of the Company are to carry on activities which benefit the community and in particular (without limitation) to [                                                          ]."

Where there is a blank or square brackets [  ]  Make sure you fill in or amend these parts.

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