We have been operating as a CIC for seven years. We are now facing a number of changes including losing key staff through retirement etc.
We would like to take a complete for around six months - that is, no trading activity at all - and then relaunch once we have new staff etc in place.
Are we allowed to do this by Companies House & do I need to record it on our C.34?
Yes to both.
You need to ensure you continue filing annual accounts as per normal. You may want to write to HMRC to inform them but you dont have to, as with the CIC Regulator.
When you do file your annual accounts and CIC34 you can let the CIC Regulator via your statement. Many CICs remain dormant for long periods (usually at the start) and its entirely normal.
If only for 6 months you'll still no doubt have plenty of activity to report, but even if you ran into further difficulties and it took you 2 years to start trading again in most cases that would be ok, as long as you keep filing as per normal!
Best of luck
Not the same as shutting the CIC down, which would require a DS01 form to inform Co-House and start the process.
Thanks John, I appreciate the help.
In I similar vain can I ask a few questions;
1) Does a CIC need to be closed if it has no money left in the account or can it be held dormant? What happens if it is going to be in the negative does it need to close before this happens?
2) In the situation that a CIC does have to close/shut down what happens to the ownership of the products that exist under the umbrella of that CIC for example a trademarked product or products authored or created as a joint director of that CIC?