How To Setup Community Interest Companies
Community interest companies (CICs)
A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.
To set up a CIC, you need to apply to Companies House, and:
- include a ‘community interest statement’, explaining what your business plans to do
- create an ‘asset lock’- a legal promise stating that the company’s assets will only be used for its social objectives, and setting limits to the money it can pay to shareholders
- get your company approved by the community interest company regulator - your application will automatically be sent to them
The CIC regulator has guidance on CICs, including the forms you need to set one up.
Co-operatives and industrial and provident societies are both types of mutual. A mutual is an organisation owned by, and run for, the benefit of its members.