The complete step-by-step guide to setting up a CIC in the UK
A Community Interest Company (CIC) is one of the most popular legal structures for social enterprises and community organisations in the UK. It allows you to run a business that benefits the community while operating through a limited company structure.
Cost: £115 online registration fee
A Community Interest Company (CIC) is a special type of limited company designed for organisations that want to benefit the community rather than private shareholders.
Social Enterprises
Community Projects
Educational Projects
Support Groups
Sports Clubs
Arts Organisations
Important: A CIC must use its profits and assets mainly for community benefit, not private gain.
No. Although both structures aim to benefit the public, there are important differences.
Not sure which structure is right for you? Get in touch for guidance
There are two main types of Community Interest Company to choose from.
This is the structure most commonly used for community organisations and non-profits. Most CICs in the UK are limited by guarantee.
Recommended for most community organisations
This structure is sometimes used where social enterprises want to attract investment funding.
Best for social enterprises seeking investment
Tip: For most community organisations, social enterprises and non-profits, a CIC limited by guarantee is usually the preferred option. Speak to us if you're unsure which structure suits your needs.
Most online applications are processed within a few working days
Delays may occur if documents are incomplete
Follow these steps to register your Community Interest Company successfully.
Decide whether your CIC will be limited by guarantee or limited by shares.
For most community organisations, social enterprises and non-profits, a CIC limited by guarantee is usually the preferred option.
Your company name must comply with Companies House rules:
A CIC must have at least one director. Many organisations choose two or three directors to improve governance and credibility with funders.
The CIC36 form is one of the key parts of your application. It shows the CIC Regulator what your organisation does, who benefits, and how the community benefits.
Who Benefits
Young people, elderly, disabled, local communities
What Activities
Workshops, events, education, support services
Community Benefit
Wellbeing, education, health, employment
Every CIC must have articles of association - the legal rules explaining how the company operates.
Most people use the model constitutions provided by the CIC Regulator and Companies House.
View CIC Model ArticlesDirectors are also members. Simple governance, ideal for smaller organisations.
Separate directors and members. Allows wider community participation.
A SIC code describes the activities your CIC carries out. Companies House requires at least one SIC code during registration.
Search SIC CodesComplete your registration through Companies House. You'll need:
PSC stands for Person with Significant Control.
A PSC is someone who:
In many small CICs, the directors are also the PSCs.
The asset lock is one of the most important features of a CIC. It legally protects the organisation's:
If the CIC closes, remaining assets must transfer to another CIC or a registered charity.
Yes. Many CICs successfully apply for:
Note: Some funders only support charities, while others actively fund CICs and social enterprises.
Yes. CICs are generally taxed like standard limited companies.
A CIC may need to register for:
Unlike charities, CICs generally cannot claim Gift Aid
After registration, your CIC must continue meeting legal obligations.
Prepare and file yearly financial statements
Annual company information updates
File annual tax returns
Specific CIC regulator filing
Warning: Failure to file documents can result in penalties, strike-off action, and director compliance issues.
We can help you set up your Community Interest Company correctly and avoid common registration mistakes. Our team has extensive experience with CIC formation and compliance.
Or call us on 01582 487594