A foundation CIO is a legal entity specifically intended for non-profit organisations. Its only members are the trustees.
Quite uniquely a foundation CIO is registered with the Charity Commission only, and not with Companies House.
Setting up a CIO
To set up a CIO you must:
Register with the Charity Commission
A CIO must have a constitutional governing document. The Charity Commission provide a model foundation CIO constitution that can be amended to cater for any unique situations.
Choose an appropriate name
Choose your trustees and maintain a register of trustees
Trustees must sign a Trustee Eligibility Declaration
Complete the online application via https://www.gov.uk/government/organisations/charity-commission
The process can take a few weeks, since the Charity Commission need to review the application. They may raise enquiries if they wish.
Going forward:
Provide annual accounts each year to the Charity Commission
You may require an independent examination or an audit of the financial statements
Maintain a register of trustees
Operate in a professional and fair manner
Respond to any enquiries posed by the Charity Commission