BC’s new corporate structure — the Community Contribution Company (also known as “CCC” or “C3”) – launched this month with the intent to help bridge the gap between for-profit and non-profit business models. The CCC is the first hybrid business structure of its kind in Canada, and allows entrepreneurs in BC to pursue social goals through their businesses while still generating a profit and providing investment opportunities to like-minded investors.
Specific details of the legal requirements for this new business structure are still emerging. However, if you’re an entrepreneur interested in incorporating a CCC, you can find out more about how to register a new CCC or convert your existing company into a CCC below.
1. What’s the difference between a typical BC Company, a non-profit and a CCC?
A CCC is not a charity, and therefore will not be tax exempt.
A CCC is similar to a BC Company, but it must allocate at least 60% of its profit toward a social purpose and it must have at least three directors at the time of incorporation. If the CCC is dissolved, it must direct at least 60% of its value toward social purposes, with the remaining value to be distributed to investors.
Additionally, all CCCs must include “Community Contribution Company” or “CCC” in their names, but not as a prefix – for example, “Your Business Name CCC.” A numbered name must end in “B.C. Community Contribution Company Ltd.”
2. When can I register a CCC?
Name Requests for CCCs became available on July 8, 2013. However, CCCs cannot be incorporated until July 29, 2013.
3. How do I register a CCC?
The process to register a CCC is similar to registering a typical BC Company.
First, you’ll have to complete a Name Request through BC Registry Services. Name Requests are now open for CCCs and cost $30.
Small Business BC can assist you with your request through the Business Name Request and Approval service for $50 plus tax. This service includes a Name Request consultation with a business advisor, and the advisor will submit the request on your behalf.
After you’ve received approval for your name, you can file an incorporation application for your CCC through BC Corporate Online on or after July 29, 2013. The cost of this filing is $350.
4. How do I convert my existing for-profit business into a CCC?
If an existing BC Company would like to convert to a CCC, it must first submit a Name Request through BC Registry Services and select the “CCC – BC to CCC Conversion” option. As above, the Name Request will cost $30, or $50 plus tax for Small Business BC’s Business Name Request and Approval service.
Subsequently, the BC Company will need to file a “Notice of Alteration from BC Company to Become a CCC.” This filing costs $100, and may be completed through BC Corporate Online.
5. How do I convert my existing non-profit organization into CCC?
Converting an existing non-profit requires that the non-profit become a for-profit BC Company with the CCC designation. Once this process is complete, the organization will no longer be a full non-profit, and therefore the existing non-profit will need to be dissolved.
For More Information
If you’d like to assess how non-profits compare with the new CCC model, please visit the BC Registry Services website for information on registering a non-profit society.
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