Community Interest Companies (CICs) were introduced under the Companies (Audit, Investigations and Community Enterprise) Act 2004 and the Community Interest Company Regulations 2005 to provide a new type of non-charitable legal structure for social enterprises. The CIC legal structure is designed to encourage people to establish social enterprises that benefit local communities, rather than being focused on generating a profit for the company’s shareholders.

This factsheet explains what a CIC is and outlines the advantages and disadvantages of choosing this legal structure. It also explains the restrictions that are placed on CICs, including an asset lock and the requirement to pass a ‘community interest test’. It outlines the process for registering a new CIC and the annual reporting requirements that CICs must comply with.