Community Interest Companies (CICs)
A company with a clear commitment to use profits and assets to support a social purpose
CIC's are a company structure that can trade and generate profits, but with a clear commitment to using those profits and assets to support a social purpose.
Unlike standard limited companies, CICs are regulated to ensure they genuinely serve the public interest. This means decisions and financial activities are assessed to confirm that community benefit remains the primary objective.
Key Features:
- Designed for social enterprises focused on community benefit, not private profit
- Profits and assets are primarily reinvested into social objectives
- Includes a “community interest test” to ensure activities benefit the public
- Can take the form of a limited by shares or limited by guarantee company
- Subject to additional regulation and reporting requirements to maintain CIC status
💡 Best suited for: Organisations that want to trade commercially while ensuring their primary purpose is social impact - such as community projects, social care providers, and ethical businesses.
⚠️ Unfortunately, 1st Formations does not assist with registering CICs. Visit the official UK Government page for more information on setting up a social enterprise.