Introduction to Community Interest Companies (CIC)

A CIC  is a normal limited company with extra features to mark it out as a Social Enterprise.

CICs come under the regulation of the office of the CIC Regulator. The Regulator’s job is to make sure that the CIC is genuinely a Social Enterprise and is not abusing the trust that the public expects to put in a Community Interest Company.

By putting the company under the Regulator’s scrutiny, the directors of a CIC can clearly demonstrate that the company is genuinely a Social Enterprise venture and not for private profit.

The characteristics of a CIC are:

• Are limited liability companies created with the specific aim of providing benefits to a community
• The CIC structure is designed to meet the needs of social enterprises and ‘not-for-profit’ projects
• Combine the pursuit of a social purpose with commercial activities
• Share many of the features of a limited company
• Cannot also be a charity but provides greater flexibility than charitable status!
• Provides recognition of the ‘not for personal profit’ status of the company (an asset lock prevents the majority of the profits from benefiting the directors or stakeholders) and ensures the community identifies and approves benefits from the activities and/or profits of the company.