We've recently received a number of enquiries from people interested in setting up a Community Interest Company, or CIC. There are lots of benefits to setting up as a CIC, as well as some challenges to think through.
We've written a guide to CICs below, and we've also recorded this video discussion between an experienced CIC and an organisation thinking of becoming a CIC, which has lots of great insights and advice.
For advice on the best structure for your organisation, contact Action Together's Development team on 0161 339 2345 or email@example.com
What is a CIC?
A CIC is a special type of limited company which exists to benefit the community rather than private shareholders.
How is a CIC different from a Charitable Incorporated Organisation (CIO)?
A CIC is a profit-making organisation that uses its profits for public good. That means a CIC is registered with Companies House rather than the Charity Commission. A CIC is taxed like a normal company, whereas a CIO can benefit from a wide range of charity tax concessions.
What are the advantages of setting up a CIC?
- Quick process: online applications can be processed in less than a week
- Cost effective: currently costs £27 to register online
- Simple registration: Registration only requires submission of Articles of Association and one other form: https://www.gov.uk/government/publications/community-interest-companies-...
- Directors: A CIC can have paid Directors, whereas charitable organisations are run by unpaid trustees
What are the disadvantages of setting up a CIC?
- Funding: Currently, there are fewer grant funding opportunities for CICs than for registered charities. However, the National Lottery Reaching Communities fund is available to CICs
How do I set up a CIC?
Step by step guidance including a webinar and example documents can be found on the Office of the Regulator of CICs website.
Visit our YouTube page to watch a conversation between Marcus Abraham, who wanted to find out more about the pros and cons of setting up a CIC, and Dani Gaines, who runs a CIC.
Contact us to discuss what the right structure is for you! Call 0161 339 2345 or email firstname.lastname@example.org