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Paul On 13/10/2025 14:29, Helen McCall wrote:
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
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