What is a Community Interest Company?

Community
Interest
Company
Definition

A Community Interest Company is an organisation which has been set up for the benefit of the community, rather than for private profit. CICs are ‘not-for-profit’ companies, which means that any profits made must be reinvested back into the organisation or used to benefit the community.

CICs can be either charities or non-charitable organisations, but all CICs must have a ‘social purpose’. This means that the company must be set up to tackle social problems, promote arts, culture, heritage, or the environment, or provide goods or services that are of public benefit.

CICs are regulated by the Community Interest Company Regulations 2005 (as amended), which set out how CICs must be run. For example, the regulations state that CICs must be transparent so that all money is accounted for and can be shown to be for community benefits only.

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Source:  www.businessadvice.co.uk