13 Dec 2017

The Charity Commission has announced a phased timetable for charitable companies that aim to convert to become Charity Incorporated Organisations (CIOs). This new legislation will also require all CIOs to be listed on the business names index held by Companies House.

Following legislative changes in parliament on 23rd November 2017, the Charity Commission has announced a phased timetable for charitable companies that aim to convert to become Charitable Incorporated Organisations (CIOs).  This new legislation will also require all CIOs to be listed on the business names index held by Companies House.

Starting with the smallest charitable companies in January 2018, the phased timetable will run until August, after which the largest organisations will be able to convert.

Date - Annual Income

1 January 2018 - Less than £12,500

1 March 2018 - Between £12,500 and £25,000

1 May 2018 - Between £25,000 and £100,000

1 June 2018 - Between £100,000 and £250,000

1 July 2018 - Between £250,000 and £500,000

1 August 2018 - Greater than £500,000

 

The Commission states that the conversion process should be simple and straightforward in most cases. The Commission will liaise with Companies House to ensure that necessary records are updated correctly. This will mean that the date of conversion of the charitable company to a CIO - as shown on the public Register of charities - will match the date of removal of the charitable company at Companies House.

All CIOs will need to be included in the Registrars' Business Names Index (maintained by Companies House) from 1 January 2018. This will help protect CIO names. For instance in the event of others looking to set up a company or CIO with the same or similar name.

Companies House will need to check whether a CIO's proposed name includes 'sensitive words or expressions' set out in The Company, Limited Liability Partnership and Business Names (Sensitive Words and Expressions) Regulations 2014, that require the prior approval of Companies House. Where the proposed name for the CIO includes 'sensitive words or expressions' applicants will need to email Companies to obtain their non-objection before applying to the Charity Commission.

You can find more details about the legislative changes and how they will affect CIOs on the Charity Commission website.