I'm not sure if this question has been answered already. But I could do with a little assistance in this area.
I'm currently setting up a CIC and would like to be a director. In saying this I intend for my company to carry out some of the work when we apply for grants. Would it be best to change my company into a CIC or create a new CIC and receive funding to enable my company to carry out work. Sorry if this sounds confusing... this is all very new to me!
Just to check I understand the situation correctly, it this right?
1. you already have a non-CIC company
2. you are setting up a new CIC which will be applying for grants
3. you want to spend the grants received by the CIC on work carried out by your non-CIC company
I generally wouldn't advise this set up due to the conflicts of interest thay will arise. If you were to do this, however, you would have to ensure the grant funder is okay with it, and that the CIC didn't spend more than market value on the services provided by your non-CIC company (in order to comply with the asset lock).
If possible, either convert your company into a CIC (as you suggested), or set up a new CIC which can do the work itself without having to involve your first company.
Hope this helps
That's very helpful, thank you for your response.