engage magazine issue 007/\'08 - Page 53

ASK ENGAGE 53 Setting up a Social Enterprise enterprise they are known as exempt charities and report to the Financial Services Authority (FSA), To register as a BenCom, you must demonstrate your social objectives and your reasons for registering as a society, rather than a company. It can cost between £40 and £950 to register - payable each year. Commission. It must have an annual income of more than £5,000 a year. Community Interest Companies Community Interest Companies (CICs) are limited companies that provide benefits to a community. To register as a CIC, you must register with Companies House either as a company limited by shares or a company limited by guarantee. You will need to provide a community interest statement describing your social purpose. A CIC regulator will approve your application if your statement passes the community interest test - i.e. the business activities you intend to undertake will be carried out for the benefit of the community or a section of it. CICs do not have charitable status. This means they do not get the tax benefits of a charity but also do not have the strict reporting requirements of a charity. Charitable social enterprise If the purposes of your social enterprise are exclusively charitable and are for the public benefit you could become a charitable social enterprise. Charitable purposes include advancing education or religion, and relieving financial hardship but there are several others. The directors or trustees are responsible for administration and management and generally must not be paid for this work. Any profits ܈\\\XYHHH\]H]\H[\YX[H\]H[\Y\ܝ]\]XH\\ˈ[H[YYY\\\\HوX[[\\H]\[Y\\H܈H[[X[\X\]]ܚ]K[]H\]B]Z[XH]ܙ[\][ۜ[^\[\]Y\]YY][Hܚ]\XH܈Z[H\]H][\HH\]HܛK[^\[\[HX\Y\\Y\H\]K[\]Y\X\HY[]Y[\X[[ݚY[Y]Y\X^HHXH\HH\]H[Z\[ۈ܈۝\[ۈHS[܈HSHY\\Y\H\]K\H\H\Z[ۙ][ۜ[\XYH\]Y\[\[Y\[\H܈۝\[ۈSˈYHH\]H[Z\[ۈX]K\\[ܛX][ێ\]Y\[Z\[ۈ˘\]X[Z\[ۋ݋Z\[Y\\H˘\[Y\\K݋ZX[[\\HZ[[[\ܝ˜]\˘˝Z‚\]XH[ܜܘ]Yܙ[\][ۂH  [H[HXH]\\H\]XH[ܜܘ]Yܙ[\][ۈ SK][B^\YNZ\H[[H܈[\\[\‚TQHUS [YHZ‚