Community Interest Companies (CIC).

We can help you set up or convert a company to a CIC - A limited liability company designed for social enterprises which benefit a community.

The right advice saves you time and stress.

We can handle it for you.

Our specialist team can take you through the Community Interest Test and advise on formation of a Community Interest Company. We can listen to your proposed plans and advise on the best structure for you.

Employment Law

What is a Community Interest Company (CIC)?

The CIC was created by the Companies Act 2004 (this has subsequently been amended by the Companies Act 2006).

It is a limited liability company designed for social enterprises which has the aim of providing benefit to a community. It must use its assets, income and profits for the community it has chosen to benefit. A CIC can be limited by either shares or guarantee. It must, however, satisfy what is called a community interest test. This test will be satisfied where the CIC can show that a reasonable person might consider its activities are being carried out for the benefit of a community.

A statement evidencing that the organisation satisfies this test must be provided in the form of a Community Interest Statement. A CIC may not be political and cannot also be a charity.


Setting up a CIC

A CIC can be formed as new company or alternatively, you can convert an existing company into a CIC.

In the case of a new company, the required form must be lodged with the Registrar at Companies House together with a small fee. The form outline’s the company’s proposed name, the type of company, its articles of association (this is the company’s governing document), together with its Community Interest Statement. This must be accompanied by the other documentation which we would usually submit when looking to incorporate a new company. The Registrar will then decide whether the company is eligible to be a CIC.

There are model articles recommended by the CIC Regulator depending upon whether the CIC is a small or large company. The CIC is, however, not obliged to use them - save in respect of certain prescribed wording.



Conversion of an existing company into a CIC

The conversion of an existing company involves the passing of a special resolution to change the company’s name to include CIC in its name and to adopt new articles of association or amend its current articles. These documents must be submitted to the Registrar with the appropriate form containing the Community Interest Statement and a fee. The Registrar will then decide whether the company is eligible to be a CIC.

Stuart Rea

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Our team of specialist charity lawyers have extensive experience of delivering practical, commercial advice and legal solutions to charities and not for profit organisations to enable them to operate successfully, and effectively meet their beneficiaries’ needs.

- Stuart Rea

If you operate in the Charities and Not-For-Profit sector and need legal advice or would simply like to find out more about how we can help you, please get in touch.

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Stuart Rea handled our unusual and complex matter with professionalism.  He understood what we wanted to achieve and gave us very clear guidance on our legal position - even though we did not necessarily want to hear the advice it was essential to our charity understanding our legal position and therefore making lawful decisions.  He also worked to the very tight timescales that we needed.

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Excellent service which enabled the Charity to achieve its timetable for the complicated transfer of assets at an affordable price for a small community run charity.

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The change to the Rules of our Charity were dealt with efficiently and in a timescale that was wholly dictated by the speed that dealing with the Charity Commission dictated, which was extensive.

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