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.
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.
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.