1. Understand What a CIC Is
- A Community Interest Company (CIC) is a type of social enterprise that aims to benefit the community rather than private shareholders. It can be limited by shares or by guarantee.
2. Decide the Type of CIC
- CIC Limited by Shares: For businesses aiming to make a profit, but reinvest most of it into the community.
- CIC Limited by Guarantee: Typically for non-profit organizations where no shareholders exist, and the profit is reinvested into the social mission.
3. Choose a Name
- The name must be unique, not too similar to other companies, and include “Community Interest Company” or “CIC” in the name.
- Ensure it doesn’t infringe on any existing trademarks.
4. Draft a Community Interest Statement
- This statement outlines how the CIC will benefit the community and how profits will be used. The CIC regulator must approve this statement.
- Be clear on the social mission, the target beneficiaries, and the impact your CIC intends to have.
5. Prepare Your Governing Documents
- You need to have articles of association (which is a set of rules about how the CIC is governed).
- Use the model articles provided by Companies House, or draft your own.
6. Register with Companies House
- Complete and submit the application form (IN01) with Companies House.
- The application includes details like company name, type (CIC Limited by shares or guarantee), and registered office address.
- Pay the registration fee (typically £27 online, £40 by post).
7. Submit a CIC36 Form
- The CIC36 form is a Community Interest Statement that you submit with your application. This statement explains how the company benefits the community.
- Companies House uses this form to assess whether your CIC meets the criteria for being a social enterprise.
8. Provide Director and Shareholder Details
- List the directors and any shareholders (if applicable). You need at least one director, and they must be over 16 years old.
- Directors must not be disqualified from holding company directorships.
9. Create a Business Plan
- Prepare a clear business plan outlining how the CIC will operate, generate income, and meet its social objectives.
- Include financial projections, governance structure, and details of how you’ll measure social impact.
10. Set Up a Bank Account
- Open a business bank account in the name of your CIC. You’ll need your incorporation details and the company registration number to do so.
11. Comply with Ongoing Reporting
- Once your CIC is set up, you must submit an annual CIC report to show how it continues to meet the community interest test.
- You’ll also need to file annual accounts and a confirmation statement with Companies House.
12. Get Additional Approvals (if needed)
- If your CIC plans to raise significant funding or undertake regulated activities, you may need additional licenses or approval from regulatory bodies.
13. Start Operating
- Once registered, you can officially start your CIC’s activities, ensuring all profits are used for the benefit of the community, and you adhere to your stated objectives.
