Welcome to Indian Ladies UK - serving the community's interest

Empowered Women Empowering Women

Welcome to Indian Ladies UK - the regular blog for Indian Ladies UK CIC 

This will be a home to many a writer from our lovely group. A chance to empower through the medium of words. 

For our first instalment, our inaugural blog, I want to take you through the definition of a CIC, a community interest company. 

A few weeks ago, when it was announced that ILU had become a CIC, I had tears in my eyes. I was so happy that in a short space of time the group had achieved so much. 

So what does this actually mean? 

A community interest company (CIC) is a type of company, designed in particular for social enterprises that want to use their profits and assets for the public good. CICs are easy to set up, with all the flexibility and certainty of the company form, but with some special features to ensure they are working for the benefit of the community. 

How does this work for ILU?
Well, already in 10 months of its existence, ILU has connected thousands of Indian women across the country with the sole aim to empower them. Our Facebook group has none stop activity, whether it's humorous posts, items for sale, special announcements, tonnes of photographs or raising money for specific causes, ILU was a CIC way before being given the official stamp. 

Why were CICs introduced?
The Community Interest Company model meets the need for a transparent, flexible model, clearly defined and easily recognised. 

Other things you should note:

• An organisation cannot be a charity and a CIC. 
• CICs are more lightly regulated than charities but do not have the benefit of charitable status, even if their objects are entirely charitable in nature. 
• Charities must be established exclusively for charitable purposes. Community interest companies (CICs) can be established for any lawful purpose, as long as their activities are carried on for the benefit of the community 
• Charities have certain tax advantages that CICs do not have.
• In return for those advantages, charities are subject to more onerous regulation than CICs 
• The CIC legal form was specifically designed to provide a purpose-built legal framework and a “brand” identity for social enterprises that want to adopt the limited company form. 
• CICs are free to operate more “commercially” than charities (e.g. CICs limited by shares can pay dividends to individual shareholders, subject to a cap), but stakeholders in CICs will still have the assurance of community benefit provided by the asset lock and transparency about their activities ability through the community interest report. 

The Acid Test

Community interest is at the heart of CICs. ILU has to serve the community it claims to serve. The community interest test is what differentiates a CIC from a Not for Profit Organisation. Showing that you are serving the community is valuable if we are seeking grant funding or philanthropic investment. 

• To become a CIC, an organisation would need to satisfy the Regulator that its purposes could be regarded by a reasonable person as being in the community or wider public interest. It will also be asked to confirm that access to the benefits it provides will not be confined to an unduly restricted group
• The CIC should be non-political - i.e. no political activity should take place. This does not mean a CIC cannot work with local politicians in pursuance of its community benefit. 

Asset Lock

Subject to the CIC meeting its obligations, its assets must either be retained within the CIC to be used for the community purposes for which it was formed, or, if they are transferred out of the CIC, the transfer must satisfy one of the following requirements: 

• it is made for full consideration (i.e. at market value), so that the CIC retains the value of the assets transferred; 
• it is made to another asset locked body (a CIC or charity or an IPS bencom, or non-GB based equivalent) which is specified in the CIC’s articles of association; 
• it is made to another asset locked body with the consent of the Regulator; or 
• it is otherwise made for the benefit of the community. 

Community interest companies (CIC) report annually to the Regulator on how they are delivering for the community and how they are involving their stakeholders in their activities.

Already ILU has raised money for Indian farmers, for women empowerment through the group's medium. 

There are meet-ups planned all over the UK, events happening everyday. The fact that the group is now a CIC shows that this group of strong women is being recognised at all levels. 

What an exciting prospect. We aren't even a year old.