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Dear All, We do not need to be either a charity or a CIC. Either of those options involves a lot of work and unnecessary expense. All we need to do is to establish a Legal Entity as a simple Community Association or Club. I outlined that nice simple system in my first email. Once we have established a simple Legal Entity, we can open a bank account. The ownership of the Legal Entity should be the Membership in Perpetuity. Helen McCall On Mon, 13 Oct 2025 13:44:56 +0100 Henry Bremridge via list <list@xxxxxxxxxxxxx> wrote: > On Mon, Oct 13, 2025 at 09:55:27AM +0100, Julian Hall wrote: > > > Hi All, > > > > Rather than a full charity what about a Community Interest Company? > > (CIC) The bar is lower for a CIC than a charity, albeit you do need > > to register the names and details of Directors with Companies House. > > > > https://www.gov.uk/government/publications/community-interest-companies-how-to-form-a-cic/community-interest-companies-guidance-chapters > > When deciding on the CICs activities you should consider the > following: > > What activity do you want to undertake and how will it benefit > the community? Who will be the owners, managers, directors, > shareholders or guarantors? How will it be funded? > How will the surpluses or profits be used? > Will you be engaging in any campaigning or political activities? > (Companies involved in these activities are not eligible to become > CICs) Who will be nominated as the asset locked body in your Articles > of Association? Will being a company with limited liability, a > mandatory Asset Lock, extra reporting requirements and designed for > social enterprise suit your needs? > > > https://www.gov.uk/prepare-file-annual-accounts-for-limited-company > > While it does not say an accountant has to prepare the accounts for > CIC, it does say that > > Statutory accounts must include: > > a ‘balance sheet’, which shows the value of everything the > company owns, owes and is owed on the last day of the financial year > > a ‘profit and loss account’, which shows the company’s sales, > running costs and the profit or loss it has made over the financial > year > > notes about the accounts > > a director’s report (unless you’re a ‘micro-entity’) > > You might have to include an auditor’s report - this depends on the > size of your company. > > The balance sheet must have the name of a director printed on it and > must be signed by a director. Accounting standards > > Your statutory accounts must meet either: > > International Financial Reporting Standards > > New UK Generally Accepted Accounting Practice > > IF DCGLUG goes this route, I presume the directors will want an > accountant to sign off to ensure that these standards are met. There > goes what £500 a year? Certainly more than £200 > > > 2025-10-13 13:41:35 > > -- The Mailing List for the Devon & Cornwall LUG FAQ: https://www.dcglug.org.uk/faq/